ransvestia

in a lump or per month or whatever. No provision is made for the falling purchasing power of that dollar. If your policy says it will pay you $100 per month starting now you can buy about 200 loaves of bread with it. Three or four years from now that same $100 may only buy 50 to 100 loaves, which won't last you nearly as long, but the company will have fulfilled its obligations: $100 is a $100.

Banks, Saving and Loan deposits: Passbook accounts only slow the loss-they don't prevent it. At 5-6% interest and inflation 10-12% per year you have lost not only the interest paid but a depreciation of prin- cipal by the same amount, and the longer you leave it there the worse it gets. Of course, you can increase the interest by tying it up for a period of years; but if you have to have it you lose the interest, and even if you do leave it there it is not keeping even. Of course, you have to have some assets available at all times, so keep them where they will at least earn something. I'm talking about money they call "discretionary money": the kind that you can make a decision about what you do with it-not money for rent, food, car, clothing, etc.

Real Estate: Great-"the basis of all wealth is the land," somebody said, and if you live long enough you'll win this way because land will be needed someday by somebody; but how long can you hold out? I sold a house the other day, but I had to do it on a land contract because nobody but nobody would lend on it-even the company who has had the mort- gage for 10 years. They stood to be able to raise the interest from 6.8% to about 9.5%, too, and all they had to put into it over what it already carried was $5,000. But they didn't because they, in effect, couldn't. I say "in ef- fect" because although they were not penniless (they are one of the lar- gest Savings and Loans in the country), what monies they did have they kept to loan on top flight, high demand properties. Mine was a small house in a canyon and so was not a prime property. The point I'm making is that if you tie up your assets in real estate, the time may come when you desperately need that value to eat on and yet nobody is able to buy it because they can't get any financing, and they are not likely to be so foolish as to pay all cash. So there you are owning a dozen properties and going hungry or letting them go for taxes. No, this is not the time for real estate unless you have enough extra money to see you through hard times and the real estate is just marking time for your grandchildren.

Diamonds, Indian Jewelry, Antiques, Collections, etc.: These kinds of things are often touted as a refuge for your assets. Again, as in real estate, when things are really rough and they are selling apples on the street cor-

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