Recently many media outlets have focused on ponzi schemes poignantly highlighting the ease of taking money from investors and falsifying the returns. Bernard Madoff's admission that he was running what could amount to as a $50 billion ponzi scheme rocked not only his investors, but all investors. Ponzi schemes unfortunately happen frequently, however the sheer size of this most recent event is hard to fathom, especially considering the sophistication of those taken by Madoff’s scheme.  Although the devastation was massive,  it pales in comparison to the scheme our government has orchestrated.

Just as you should diversify the various asset classes that you hold, it is also a good idea to diversify how you invest in those asset classes.  This is especially true with precious metals.  There are many ways to invest in precious metals and many of them are good, but they are beneficial for different reasons.

Life insurance, strangely enough, is one of those topics that can lead to passionate disagreement (despite it's basic premise).  There are many different theories on what type of life insurance people should choose and how much of it they should have.  There is no right answer to these questions (as each person's situation and goals are different), but here is our take on the subject.

Your ability to lower the risk you are taking with your assets begins with diversification. The old adage about having your all eggs in one basket becomes even more true when it is your nest egg. 

Many people believe that inflation is headed our way soon.  The question is how best to prepare for it.  Inflation is a government-created problem that every government thinks it can control.  However, it has meant the end for several governments world-wide over the past two centuries.  As we try to build wealth for ourselves that we can rely on for our future benefit, we must keep in mind that saving up a slew of greenbacks may not work out as well over time as we may have planned if significant inflation were to occur in the near future. 

As we work and build wealth we seek ways to store that wealth.  As recently as the early 1930's that wealth could have been stored safely in U.S. dollars, as the currency itself was insured.  It was backed by gold and silver.  However, over the course of the 20th century the dollar lost all of its ties to gold and silver.  Now the U.S. dollar is backed only by the trust that people place in its value, it is yet another fiat currency.  If you want to store wealth for the long term, you need to convert some of your accumulated dollars into real money, not just currency.  Accordingly, it makes sense for everyone to own gold, not as an investment, but as insurance.