Day 26 of 28...

DBFFOA Student Neal Weintraub asks: "PBS had a special on our nation's debt which is now about 13 billion. What can investors do to protect themselves, if the Chinese stop paying for our spending binge."

Doc Brown Answer: "PBS is touting a balanced budget argument that is incorrect from a Keynesian perspective...which is the correct perspective. But since the Milton Freidman "Church of Free Markets" approach has turned out just plain wrong; combined with a paucity of convictions of bankers post-bailout; you can expect politicians to do all the wrong things again. The big danger with all this is that taxes may skyrocket. So, if you're starting out you (1) methodically save into a Roth IRA for tax elimination. But those amount are small ($5,000 this year). Then (2) you trade futures or Forex to turn small amounts of money into a big pile using a corporation you create to trade as a business. Then you can tax shelter up to $60,000 per year using a SEP or SIMPLE IRA in the stock market through a passive core strategy such as indexed funds (The Gone Fishin Portfolio) or Berkshire Hathaway (NYSE:BRKB)."

-Doc Brown

Enroll in the #1 Trading Course Today:

www.TradeMentors.com

Sent via BlackBerry by AT&T