I’m trying to sort out The Money Endgame.
To do this, we need a comprehensive chart of the things money can run into for alleged safety.
What I’ve got here is just the barest skeleton, and I invite people to add to it in Comments and to pass this link around so experts can look at it and create their own comprehensive post that everyone can then refer to in order to suss out the endgame.
The Ordinary Investments:
01 – Savings
02 – Real estate
03 – Stocks
04 – 401K
05 – Mutual funds
06 – Corporate bonds
07 – Muncipal bonds
08 – Corporate junk bonds
09 – Options
10 – Commodities
11 – Silver
12 – Gold
The Weirder Stuff:
01 – Currency exchange
02 – Debt swaps
03 – Derivatives
Aside from the things “everyday” money can run into, we need a list of the things national funds can flee into. That’s the real Endgame Playbook. It’s not enough to see gold popping or food becoming more expensive. It’s the chess moves nations make that really tell the tale.
Mike,
Just a couple of comments. First, a 401(k) is not an investment. It’s a tax deferred retirement account through an employer made up of investments such as stocks, bonds, mutual funds, etc. Second, a derivative is a broad definition of any investment that derives its value from something else. Stock options are based on stocks, currency speculation on currency, etc.
I would also add the following as alternative investment types:
Real estate
Direct participation programs (publicly traded partnerships, typically oil and gas or real estate)
Investment company products (includes mutual funds, but also exchange funds and hedging funds)
All of the aforementioned investments as well as the options, junk bonds and commodity futures you mentioned are considered speculative, high risk, and usually only for “sophisticated” investors (read: rich enough to be willing to risk their entire investment and still sleep at night)
Krista
No you see how much — which is nothing — I know about investments. Thanks.