The Times They Are A Changing

Our economy seems to have been in the toilet for some time now. But, with the recent downward trend of companies like Merrill Lynch and Lehman, institutions we thought were made of obsidian now crashing before our eyes, it may be a good time to make sure your money is safe. Or, at least as safe as you can make ensure it to be.

Federally Insured

If you have more than $100,000 dollars in your bank you may want to do two things. First, make sure it is federally insured. Then transfer anything over $100,000 into another bank, making sure your money is also federally insured there. The insurance that protects and is backed by the federal government is paid with your tax money, but will not safely top the $100,000 mark

Brokerage accounts are not all federally insured. The SIPC (Securities Investor Protection Corp) backs your investments for up to $100,000 in cash and $500,000 in overall securities. Again, if you have more money that this invested, move some to other investment firms.

Home Equity Line of Credit

While it is still possible, set up a home equity line of credit. You may not need it at the moment, but as bad as the economy is looking, it is as good as cash in the pocket. Having it set up doesn’t mean you need to use it immediately.

Taxes and Savings

Does it seem as though prices of everything has gone up, gas, food, clothing, rent? Well, of course it has, but it’s a good bet that your salary has not kept up pace. Well, don’t look now but it doesn’t matter who eventually wins the ticket for the ride in the Whitehouse, taxes are going to have to go up. The Iraq war has put the American people in a huge debt crisis and somehow it will have to be paid. How else do you imagine that will happen except to raise taxes.

That makes it a good time to cut costs on anything left that you can. Carpool, eat out less, cut down on family vacations and weekend trips, stop shopping for things that aren’t necessities. The more you can put away now, the better you will be able to handle any new taxes that come along.

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