Xander Crews asked:
I’m finally about to get my career underway. I’m a pretty frugal person, so even though the initial pay isn’t fantastic I should be able to save at least $10,000 in the first year while I pay off all of my credit card debt and auto loan debt. From then on out it’s about 24k of structured student loans.
Each subsequent year, I should be able to save at least $20,000. So over the course of 5 years with a small amount of interest, I should have $100,000 saved. I would like to put this toward the purchase of a house. Hopefully the housing market will be stabilized and deflated by then so I can make a wise investment. (Yes, deflated.) See http://www.businessinsider.com/the-housing-chart-thats-worth-1000-words-2009-2
Here’s where I’m uncertain. The dollar is volatile, to say the least. If I hold onto my assets in the form of dollars, then my $100,000 in 2014 could have the buying power of 50k of today’s dollars, or even 20k or worse.
Would I be wise to convert the balance of my savings account into Euros? Can I even do that in a domestic bank, or would I have to open an overseas account? I’m trying to anticipate a solid way to save my money and maintain its buying power through thick and thin. I would be stupid to put money on a house before the upcoming Option-Arm housing crisis runs its course and the market loses another $1-2 trillion.
I’m even contemplating buying gold (not gold “investing” as you see on those commercials, but physically owning gold coins), but that comes with a whole other set of concerns for keeping it safe.
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{ 2 comments }
Good luck in your career, you didn’t mention what field. I don’t think the housing market can go much lower. I’d sit on the side lines with cash in hand and look for a good deal. If you aren’t willing to save in American dollars, perhaps you should move out of the country. It’s going to take the American Spirit to survive this downturn.
I don’t know if going the euro route is the best since they are suffering just as much as he USA. I think investing in bonds and CD’s will be best because you’re nearly 100% guaranteed to get your money back with interest on it. I think having Euros seems just as bad as keeping it as UDA dollars, then agian I may be wrong. Gold is good but just like anything it can change in worth too.