I am not a financial advisor, lawyer, or accountant. Â You should consult with someone with this type of expertise before making financial decisions, but it’s never to early to start thinking about how you should plan financially to survive/improve/thrive with the changes that may occur in the next year or two. Â I’m sure people with a lot more smarts than me will have some ideas, but here are some things I’m thinking. Â Feel free to add your own.
Get rid of your consumer debt. Â Financing things that are going down in value (cars, boats, Whopper value meals) is never a good idea, but is especially bad when when you need to have financial flexibility. Â Pay off your cars and credit cards ASAP. Â Even if things work out famously, being debt free is liberating. Â You’re going to need the extra cash to pay higher prices for goods and services. Â You may think only corporations and rich people are going to pay more, but the reality is that the people who buy stuff from them are the ones who will pay.
Open foreign accounts. Â Definitely consult your accountant and lawyer on this one. I’m just a guy who looked it up on a web site. Â According to the IRS a person must report a foreign account via FBAR if:
1. Â The person has financial interest in, signature authority or other authority over one or more accounts in a foreign country, and Â Â
2. Â The value of the account exceeds $10,000 at any time during the calendar year.
Invest in assetts that will be more difficult to seize. Â Cash and equities can be taken pretty easily. Â Of course, according to Kelo, land may not be that safe either. Â As long as it’s taken for the common good, right? Â Still, if things get really bad at least you can grow a garden.
Defer your income if possible, for as long as possible. Â Tough to do unless you own a business. Â But if you do own a business you are probably in the most danger of being hit. Â If you can put earnings/income off long enough, we may return to a more sensible philosophy.
Save a little extra cash now. Â Tax increases will probably be retroactive to the beginning of the year they are increased. Â That means if your taxes go up you’ll have to pay extra taxes on money you were taxed on at the original rate. Â You’re going to need the cash for that.
Act now to help elect a fiscally responsible representative in your district for Congress in 2010.