Business Financial Diversity for Preppers Question

Listener John wrote to ask:

I was recently listening to [your podcast about preparing] for a financial collapse [or] economic collapse by having cash on hand, gold and silver, and buying goods. My question is this. I am a business owner and for business purposes keep a large amount of money in a major bank. What is the best way as a prepper to make sure that the government does not take this money under extreme situations? I do not believe having cash on and is an option as it is a large amount. Also, my vendors do not except gold and silver as payment. I appreciate your advice and feedback.

Good question for applying theories and ideas to the real world. First, let me state up front I’m not a financial planner, so this isn’t legal financial advice. That being said…

Running a business or even your every day finances don’t always mesh with how we would like to position ourselves from a preparedness perspective. However, that doesn’t mean you should ignore either side of the equation, you just need to manipulate the equation so it reduces the pain points to tolerable levels.

In John’s situation, he has large amount of capital kept in a bank, but how does he protect that asset from a bank “holiday,” bank collapse, confiscation, monetary devaluation, or any number of crappy things that they can do to your money while they’re holding it. The easy answer is don’t keep your money in banks, but that solution doesn’t work here -as it really doesn’t work in today’s modern society- so you need to adapt it.

The biggest pain point is the realization you probably can’t avoid or eliminate any of these if your money is in a bank. Worse, the entire banking system – to include the laws – are structured not to be in your favor. Nice guys, those bankers and politicians, right?

Not having faced this situation personally, I don’t have any experience on which to draw from. Can you use an off-shore, non-American bank for your business transactions? If so, consider and research your alternatives. Perhaps you can find an off-shore bank that will allow for relatively easy money transfers to your American bank account, and shuttle money between them to limit 100% risk exposure to the laws governing both banks.

Perhaps someone reading this does and can add to this in the comments below (hint hint).

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2 Responses to Business Financial Diversity for Preppers Question

  1. Courtney Renee says:

    What about credit unions? For my entire life I have heard that the government can not seize money from credit unions because they are privately owned. Is that true?

    • Rob Hanus says:

      Regarding CUs, I’m not sure. My guess is they would be susceptible if they are FDIC insured. Ask your credit union, I’d be curious what they tell you.

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