Looking for an absolutely safe investment

[CantGetFooledAgain]

I'm a little freaked out now after learning that even my money market mutual fund (B of A) may lose value. So I'm looking for something absolutely safe. I don't care about returns right now, just getting through this current crisis. (In other words, not return "on" my money, return "of" my money is what is on my mind).

Maybe I'm overreacting, but I guess it was mostly this post from yesterday: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4022090 where the author states that "safe" money market funds "will be wiped out in very short order".

Is a treasury bond fund a good choice in the event of a large scale collapse? If so, is there a particular company or fund that anyone can recommend?

This is my Roth IRA so apparently I don't have an FDIC insured option.

My gut tells me to prepare for the worst. Any advice?

[begin_within]

1. Real estate?

As long as you "buy in the path of progress."

[Ghost in the Machine]

2. Cheetos...

When everything collapses, you'll still be able to eat...


:evilgrin:

[CantGetFooledAgain]

6. I'm a Goldfish man myself...

[spanone]

3. cash under the pillow

[meegbear]

4. "One Word: Plastics"

[coalition_unwilling]

5. If your ROTH IRA offers a Money Market fund that invests exclusively

in US Treasuries ("backed by the full faith and credit of the US Government"), that would be a very safe place to invest.

[CantGetFooledAgain]

12. Interesting suggestion.

I think that there is a government money market sweep option, so maybe I can switch to that...I will look into it.

Thanks.

[coalition_unwilling]

28. Please do note that even this option carries a tiny element of risk (the

risk being that the US falls apart completely, a la the USSR in the late 80s.) But for preservation of capital without consideration to yield, it's probably the safest bet out there.

[tpsbmam]

30. That's what we did about 6 months ago. We shall see but I definitely feel a little

more secure with that than my money market fund, which had too much financial institution/subprime exposure.

[eShirl]

7. arable land?

might come in handy for growing food on, in the meantime

[trashcanistanista]

32. I second land. Also

Seeds, soil, a compost bin and gardening supplies. You will be able to eat and trade for what you need.

[slackmaster]

8. Guns and ammo

Be sure to keep all weapons secured when not in use.

[anarch]

15. and dry goods

Beans and such. The new currency of the 21st century: beans & bullets.

[YOY]

9. Gold.

n.t.

[qwertyMike]

10. Buy a bus ticket

to Canada

[napi21]

11. I hate to say it, but I'm with the poster who said under your mattress!

Even THAT is no guarantee because as they print more $$ the value of the dollar deteoriates!

[CantGetFooledAgain]

14. Exactly. Plus, this is an IRA account

I can't cash it out without a huge penalty.

[ITsec]

13. Food. And water.

and if you're so inclined, means to protect it all.

(edited for spelling)

[BurtWorm]

16. Your mattress.

Invest heavily in it.

[CantGetFooledAgain]

20. Funny.

Unfortunately that's where one of my cats goes to get away from it all. I don't think I trust her with access to that much cash.

[BurtWorm]

21. She's probably safer than an investor.

;)

[CitizenPatriot]

17. depends on where your investments are held

as far as I understand it, at least. the SIPC backs investment firms and some are also backed by insurance companies; for example Lloyd's of London. I'm thinking cash for the money that is in money markets.


Good luck....

[CantGetFooledAgain]

19. A lot of people are saying "cash"...

But I don't have that option with a retirement account. Do I?

The money market funds are supposed to be the same as cash, but from what I'm hearing that may not be the case any more.

[CitizenPatriot]

27. that is true

I am in same boat. Apparently it matters where your investments are held and whose money market it is. I called my investment firm to find out about the holdings in the money market account and the overall health of their company. They may have lied to me, of course, about the health of the company, but I was relieved to find that they had not gotten involved in buying subprimes and had kept a very conservative outlook. Also, they've had an influx of new investors recently, perhaps indicating that they are viewed as more solid than other firms. Whatever that means right now.

I'm hearing people mention other kinds of "safe" investments right now, but I don't know enough about them to comment.

If at all possible, I'm trying to NOT panic, to evaluate my holdings, and make a plan for several scenarios. They all suck, but at this point it is about what I can stomach and what I can't stomach.

[CitizenPatriot]

34. PS just checked my money markets and they are not insured

moving to cds perhaps.

[lumberjack_jeff]

18. I wouldn't overreact to a low count poster.

80% of my retirement is in vanguard money market index and vanguard intermediate term bonds. I may take a small loss, I may make a small profit.

I AM going to withdraw some physical cash.

[high density]

22. Vanguard Treasury Money Market

https://personal.vanguard.com/us/JSP/Funds/Profile/VGIFundProfile0050Content.jsf?tab=0&FundId=0050&FundIntExt=INT#hist::tab=0

[CantGetFooledAgain]

24. Thank you for the advice!

I understand that Vanguard has one of the best reputations in the business.

[high density]

26. Yes

I have > 90% of my 'liquid' assets at Vanguard. If you want safety then I don't think it gets any better than their Treasury money market fund.

[Kaleko]

25. Vanguard is still the best bet among all the financial institutions

that I know of. I've done extensive research before coming to this conclusion.

Check them out, compare, see how Vanguard is structured and how they've conducted business since John Bogle founded the company.

No guarantees, though, naturally.

[lame54]

23. I bet Blackwater stock does well

[Kurt_and_Hunter]

29. a ROTH IRA is insured up to $250,000

[pokerfan]

31. Treasury Bills

No wait, they're http://ap.google.com/article/ALeqM5huW7XBNlC1-mFEhKe47gbQJYfdPAD9398O282">trading negative.

[katty]

33. Your Mattress

[readmoreoften]

35. I know a way to make a MINT. I'm not worried at all.

Listening to ya'll talk: I'm going mattress raiding! :spank:

Nah, I'm just kidding, I'm not stealing anyone's money. I'm not a Republican. But anyway, you should really be careful, because I agree with that other fella posting from Mexico: the real people we'd have to worry about in a depression would be the newly-poor Republicans who don't know how to live without their slaves. They'll give their last dime to bribe thugs to steal your deposits at Sealy Posturpedic.

[davepc]

36. I just closed my Washington Mutual accounts this morning.

They had run out of large bills, i got my money in 20s and 10s.