Special Agent David Cooper

Social Security Running out of Money

dthecoop — Wed, 13 May 2009 18:48:23 +0000

I am a bit shocked to see that the government is openly saying that the Social Security system will start taking in less money than goes out even earlier than they thought (2016 vs. 2017) and took four years off the date of the end of the trust fund (2037). Unfortunately, the trust fund has no actual money in it-only government IOUs. You can read more here and if you are younger make sure you are saving for your own retirement.

I can help you start a savings plan that will allow you to provide for your retirement without the mess that is Social Security. If you plan for yourself and still get government checks that is gravy.

Avoiding Black Swans

dthecoop — Wed, 13 May 2009 13:46:55 +0000

Nicholas Nassim Taleb is an exceptional writer and brilliant thinker who put together a list of ten principles that can help our society avoid financial “Black Swans”. The foundational principle of his list is that you cannot build a robust economic world (personal or corporate) upon the foundation of debt. Wonderful wisdom that our world needs to hear.

Blog Competition

dthecoop — Mon, 11 May 2009 19:04:02 +0000

Even though I am a brand new blogger, I am entering my infant blog into a local blog competition. I’m looking for some good feedback and to discover what topics potential clients want to discuss and hear about.

Peter Schiff was right. Is he still?

dthecoop — Mon, 11 May 2009 18:49:27 +0000

I really enjoy listening to and reading the economic thinking of Peter Schiff. He is the author of Crashproof and The Little Book of Bull Moves in Bear Markets and his articles, video blogs, and links to other articles can be found at europac.net. Schiff’s message is sobering-the government and the federal reserve are responsible for creating artificial bubbles in our economy (think tech stocks in the 90s and Condo’s in 2005) that will eventually pop (NASDAQ down 80%, condo’s you can’t sell). When those bubbles pop there is pain and the government tries to ease the pain by blowing air into the exploded bubble in the form of easy money and low interest rates. The danger of those low rates and the printing of money is that the dollars we have in our wallet will eventually be only worth the cloth they are printed on (i.e. 100s and 1s will basically be the same thing). Yikes!

Schiff’s advise is to position yourself so that the coming crash of the American dollar will not bankrupt you. His stratedy is to avoid any adjustable rate debts (no credit card debt, no home equity loans, no adjustible rate mortgages), own physical precious metals (gold, silver, platinum, copper), own mining company stocks, and own foreign denominated dividend paying stocks (companies in other countries that pay you in their currencies). Check out his popular YouTube video, “Peter Schiff was Right” and let me know what you think of his strategies.

Article of the Week-05.08.09

dthecoop — Fri, 08 May 2009 18:49:33 +0000

Malcolm Gladwell is always a great read. His recent article in the New Yorker on how David beats Goliath is making me rethink the ways that I play by Goliath’s rules in the world of investing and sometimes get crushed. David knew that the goal was to win and he won by not going toe to toe with the giant. For most investors, winning is having enough money to retire on your own terms. Goliath’s rules can cause you to chase performance, pay too much for advise, misunderstand risk, and get distracted by day to day fluctuations. It seems to me that the Davidic question is, “Am I on a reasonable course to have the kind of life that I want to have in the future?” If not, what should you change to get on course?

Getting Started on My Blog

dthecoop — Fri, 08 May 2009 17:54:45 +0000

The goal of my blog is to give you insights into the world of personal finance. Saving money, making money, investing, and protecting yourself will all be covered. I read a ton of great articles and books so I hope to distill the good stuff and give it to you.