Conservative Investor’s Plan of Action

1. REDUCE DEBTS AS RAPIDLY AS POSSIBLE AND INCREASE LIQUIDITY. Build your cash reserves, keep at least a month's expenses (two or three is better) in cash on hand.

2. DESIGN A PLAN TO BECOME SELF-SUFFICIENT IN ADVANCE.

3. AVOID ALL BANK DEPOSITS OVER $250,000. That is the current FDIC insured limit unless you have a non interest bearing account - no limits on these. (Remember, they will combine multiple accounts.)

4. AVOID THE STOCK MARKET AND EQUITY MUTUAL FUNDS - The stock market is the most overpriced since October 1929. A Japanese/Asian-style stock market collapse is in the offing.

5. LIQUIDATE EXCESS REAL ESTATE (EXCEPT YOUR HOME).

6. MONITOR THE FINANCIAL CONDITION OF YOUR BANK, S&L, AND INSURANCE COMPANY. ICA works with firms that provide this service.

7. AVOID ALL CORPORATE BONDS, LONG-TERM U.S. GOVERNMENT BONDS AND MUNIS (if the munis are rated below AAA and are anything but general obligation bonds).

8. 30-50% OF YOUR PORTFOLIO SHOULD BE IN PRECIOUS METALS - in the form of non-reportable, non-confiscatable gold, silver, and platinum coins.

9. TRANSFER A PORTION, OR ALL, OF YOUR PENSION FUNDS (IRA, SEP, KEOGH, 401K PLAN) INTO GOLD, SILVER AND PLATINUM COINS. Our firm can assist you in this penalty-free transaction, but you must act now.

10. SET UP A BUDGET - AND SAVE AT LEAST 10% PER MONTH.

11. DEVELOP A SECOND SOURCE OF INCOME.

12. STREAMLINE AND SIMPLIFY YOUR PORTFOLIO - Very few investments make sense in the financial environment analyzed above. Remember Murphy's Law - "If anything can go wrong, it will." The more variables in your investment or investment portfolio, the more that can go wrong in an unstable environment.

13. SMALL BUSINESSES SHOULD REDUCE INVENTORIES, COSTS, AND EXPENSES, AND RAISE CASH - Look for inexpensive ways to promote or market your product or services.

14. ACQUIRE AT LEAST ONE YEAR'S SUPPLY OF STORAGE FOODS PER FAMILY MEMBER - U.S. food reserves are at a historical low and huge demands based on drought and storm/flood conditions are likely to dramatically increase food prices and create severe food shortages.

15. PRAY FOR WISDOM AND GUIDANCE (JAMES 1:5) ON HOW TO HANDLE YOUR FINANCES. "But if any of you lack wisdom, let him ask of God, who gives to all men generously and without reproach, and it will be given to him." PROVERBS 27:12 says: "The prudent see danger and take refuge, but the simple keep going and suffer for it."

INTERNATIONAL COLLECTORS ASSOCIATES (ICA)

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McAlvany Weekly Commentary provides investors with valuable monetary, economic, geo-political and financial information that cannot be found on Wall Street. Your host David McAlvany presents a solid strategy of wealth preservation for your financial and retirement assets while living in an unstable economy.

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At International Collectors Associates (ICA), we specialize in the sale of bullion, semi-rare U.S. and European gold coins and secure offshore storage in Switzerland for your precious metals. Our highly trained and experienced advisors strive to help you in customizing solid strategies of wealth preservation for your financial and retirement assets.

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