Season’s Greeting to you! When you read this you may be in preparation for the holiday season or end of year celebration.
“ Why Celebration? ” “Who in his right mind would be partying over the dreadful speed in which this year has passed!” 
John Lennon actually got it right:  Life is what happens while you are busy making other plans.

Well, it is not all that bad.  I heard once: “try to find in every sad thing 5 or more good aspects, then write them down. That puts the problem into perspective.” This is indeed a 100% working cure without unwanted side effects. Just try.

Today let’s check out this advice on life’s length and values as such, as sort of a test item: Life is just too short, right?  It’s almost always shorter than we want it to be. Now, which first positive line could we find when reflecting on how life is cruelly progressing towards our ’use by’ date? It could read like this: “Great, every day retirement heaven moves a bit closer. Garden life, the peaceful afternoon tea, no more running in the wheel , - no more worries, because I shall fully enjoy what I’ve worked for all those years.”                                  

But how come that countless people advise to better not to fall into the trap of thinking going into retirement is an entirely good thing only?  I remember someone describing this step as “entering God’s waiting room”.   Who really wants to line up early to stand in front for service?                                        

You wouldn’t either, I suppose; - it does not take much demographic skill to work out that most of you, who are reading this, are above 40 years old, open minded and financially reasonably stable. Maybe just not quite living yet off the interest of their multimillion Dollar accounts. (Actually, whoever does not have to worry these days about US Dollars in hand is lucky. We get to this in a moment).

No matter if still working or not, it is best to keep busy and stay sharp.  Therefore why not use the holiday season to figure out how to secure and grow the assets, in order to enjoy a future free of economic headaches.  You will probably find that eventually this will lead you to plan for a passive income, as already suggested in an earlier article here.

From the plethora of options, finding what suits your situation is the key. We have to consider that financial advisors are smartening ever up and turning their products into psychological smart bombs.  The internet tells us about hundreds of “surefire” ways to make a quick dollar. We’ve heard not all, but too much already.  However, when looking at the unsettling international events which unfold around us right now, we better consider again what to do with our precious savings (if any), before others in business or politics get their fingers on the fruit of our labor.

The ones who ever met me, may know that I have been living and working in more Countries than the average person. Therefore I know of many things something, but unfortunately not enough of anything to call myself a specialist or genius. Well, this may not be entirely true, because together with 10 years experience in UbudProperty and with qualified long term staff at hand dealing in Indonesian legalities, in banking, also with Government rules regulations and it’s peculiarities, there is a wealth of specialist knowledge and experience at hand. Even if you read these monthly small collection of ideas for  entertainment only, there are usually noteworthy facts thrown in, such as the following about current values and recent inflation in Indonesia-

You see, the 2016 inflation rate in Indonesia is said to be 3.6%.  The Government continues to say that the average between 1997 to 2016 is 10.74%.   What a great example example to define ’Wishful Thinking’. About double comes closer to the truth as you will probably have noticed when making your payments anywhere. It becomes therefore clear that keeping considerable sums of cash at home means losing yearly about 7% of our money.

Aaah -, then we better carry funds to the Indonesian Banks. After all, some of them are paying now about 9% interest on term deposit savings. Secured too.  Hmmm, let’s think:    9% minus 20% tax, which are withheld automatically, leaves us with about 7% real increase in the account balance.   Now we deduct the 7% inflation, and there we are --- nothing lost, nothing gained.  We sure can do better, yes !?

Yes, yes, thankfully there are bonds and stocks!   We heard people become rich here.  But then again, - it is a fact that all investments offer a balance between risk and return.  Government- or other bonds are no exception. Their risk is lesser than stock investments, because the buyer receives a guaranteed return rate, but when for example interest rates rise, bond values fall and vice versa.  The longer the period to a bond’s maturity, the greater it’s interest rate risk.  Not to talk about the risk that we may have bought at the wrong time, the bond market as a whole does decline, etc.  Nibbling a bit there will do no harm, but putting our serious money at risk?  Again, maybe better not.

All right then, there is always buying into shares.  You know that it takes good nerves if you want to make quick money, or need years, when trying to play it safe.  For sure there are always upcoming markets, which indeed promise quick growth of your stock investment.  Look at Lithium, for example.  Wall Street advisers tells us that lithium will account for 70% of our future energy supply.  But what if something happens like to Fuji Film who once invested heavily in the film industry to throw Kodak off its throne.  Then, short after a huge investment was made,  digital images replaced film. With almost exploding technical advances it is hard to say for sure which technology will prevail. Same with Bio-med stocks, etc. Keep Granny’s advice in mind: “When not certain, don’t go there”.  Surely not when putting the life savings on the line.

Na, here comes a winner:  Grandpa was reminding us sometimes of the stable value of gold. Yes, stability and independence from inflation and paper money! Now we are on to something much better…       

Or not? Let’s see:  With already more than 30 major world economies doing business using Chinese and other currencies, it’s only a matter of months before the U.S. dollar spirals into hyperinflation. Unfortunately, there’s nothing that can be done to stop it. It’s the natural effect of years of rampant money printing, and it’s amazing that they have been able to delay it this long. (just imagine, they produced out of thin air  400 percent  more paper money, than existed before the Fed started the printing presses up).

The U.S. Dollar Index is now at its highest level since 2003. But there’s no way this level can sustain very much longer because there’s simply nothing backing it. The strength in the USD right now is simply the result of currency weakness and crisis elsewhere around the world. The fiat dollar is simply being used as a hedge against other fiat currencies... trading paper for paper.                                                                                                                                                                                            The false strength of the US Dollar and economy under the guise of the ’Trump Rally” has pressured gold to plummet in value.  “Quick, let’s run and secure gold bullion. Never a better time!  Cheap as chips!” How absolutely true! No joking. Right now, gold is a steal at current prices. Trading at $1,150 an ounce, the shiny metal has been recently pressured by false strength in the U.S. dollar and economy under the guise of the “Trump Rally.” BTW - I am as worried about Donald the Terrible as maybe you are.

The U.S. Dollar Index is at its highest level since 2003. But there’s no way this level can sustain very much longer because there’s simply nothing backing it. The strength in the USD right now is the result of currency weakness and crisis elsewhere around the world. The fiat dollar is being used as a hedge against other fiat currencies... trading paper for paper.

Gold has been for thousand years of value, simply because it is not made of paper, is not as common as sand and does not rust and can be polished to a lovely shine.  However, Warren Buffett once said that his ideal hold time for all of his investments is "forever."  Therefore gold would not be his first choice either, because the world may wake up and realize that there is no practical use for the metal, sending it’s value ’south’ long before “forever” comes.

Is there maybe a safe haven in the crypto currency Bitcoin? There is certainly no risk of corrosion or mildew eating into your stock.  As long as (notice: “if”)  the internet works, Bitcoins are easy to keep from thieves and safe from fire in the house.  For those who want to refresh on what ’Bitcoin’ means, here a quick summary:

Bitcoin is a digital currency. Instead of printing banknotes, or minting coins, a list of the registration numbers of each of the "coins" is kept and a record of who owns them. People can pay one another by transferring the registration numbers online. The creators of Bitcoin remain anonymous. The founder is supposedly called "Satoshi Nakamoto”, which is a Japanese name, but could be a person or people anywhere in the world. Whoever the founders were, they mistrusted government enough to set up a private currency and an online bank account system outside its reach. In 2015 there were already over 100.000 businesses accepting and trading in Bitcoins.

The system has a cap on it. There can never be more than 21m registered numbers.  In a process that is similar to a continuous raffle draw, "mining" nodes on the network are awarded Bitcoins each time they find the solution to a certain mathematical problem. The reward for solving a block is automatically adjusted so that the number of Bitcoins created decreases as time goes on. Thereafter you can buy the Bitcoins on a Bitcoin exchange using regular currency. Feeling a little bit dizzy? You are not alone.  

Also this:  on April 4 2013 a number of Bitcoin exchanges fell victim to hackers, causing its value to fall sharply. Six days later its value soared to an all-time high of $260 per bitcoin, before plummeting to $160 just six hours later. Roller coaster rides can be great fun.  However, if on the tour your savings join the up and down, you need a strong stomach and disregard to the possibility to end the ride either rich or poor. 

Naturally in a monthly small newsletter like this we cannot talk about every possible investment, let alon, in detail, nor is this our professional field. It is not even possible for a seasoned investment strategist to know all.

However, there is an investment better than others on which almost all professionals agree. Its finiteness guarantees that over time, it will appreciate in value.  We will jointly be entering our only field of expertise in which I can tell you more than the average man or woman on the street. You guessed right – investing in property and WHY. To be continued…

Looking forward to see you here next month again.  R.