Ben Stein How Not to Ruin Your Life

The Russians deserve censure and criticism. And, we, who have been total fools and totally taken in by Putin, should react appropriately: namely raise taxes to dramatically rearm our military.

If we are in a very difficult world, which we are, with Russian imperialism, Chinese imperialism, Iranian insanity, Moslem fundamentalist terrorists in many places including here in the USA, we had better wake the heck up. It's the Cold War again, folks, and we have to rearm as if we meant it. The GOP won't like this and neither will the Democrats, but we have to raise taxes and buy a bigger Army, Air Force, Navy and Marines. If we do not react by taxing ourselves more to defend ourselves, we are just suicidal.

And, we have to ask ourselves who we want leading us in the next four years: a Chicago politician with absolutely zero experience in foreign relations and defense, or a man with decades of experience in the Senate on defense and foreign affairs matters, not to mention a man who knows war up close and personal. But that's up to each of you, not up to me.

What I can tell you is that the United States is still vastly the richest nation on the planet with a per capita GDP (gross domestic product) at least four times that of Russia. The Russians' immense oil exports are barely a rounding error in the US GDP. That is to say, we can afford to defend ourselves if we really want to.

That, however, is up to our politicians, and that's a scary thought.

But what do you as an individual do right now in this very dangerous world? First, panic! No, just kidding. First, don't panic. Russia under Putin is not Russia under Stalin. Putin wants to have hegemony over the neighbors and parts of the Soviet Union that went bye bye when the Soviet broke up twenty or so years ago. He shows no sign of wanting to take over the United States or Britain. Why should he? He is making money selling the Europeans energy. They are no threat at all to Russia.

As to the USA, he has now seen that we will not bother him as he puts the Soviet Union back together on an informal basis. So why risk provoking some oddball cowboy nuclear response from us?

Russia is a bully and we're not going to fight the bully in his backyard. But the bully is not coming to New Jersey or New Mexico. So, again, don't panic.

Second, bear in mind that we live in a risky world. When you invest overseas, as you must, be prepared for immense swings. Do not panic if your overseas investments tank for a time. Use that time to buy more. As always, just go with the broadest possible indexes.

Third, keep plenty of liquid assets in the form of Treasuries or insured bank accounts. Inflation will bite you, but you will still be glad you have that money in a readily available form.

Fourth, try your best to develop modest habits of life. There is no vice more painful that luxurious habits, says an old Chinese saying, and it's totally true. If you can accustom yourself to modest living, you are far ahead of your neighbors and you are investing in your peace of mind.

Fifth, do what you can to maintain your health. It is going to be necessary for many of us to work well past 65. It will be a lot more fun if your health is decent. No smoking. Moderate drinking. Eating lots of fish. Good, life giving exercise.

Sixth, keep saving in broad indexes even when things look bleak.

Seventh, have a trusted financial advisor and work with him or her on a plan that makes sense. Finance is way too tricky to do by yourself.

Eighth. Panic. Oops. I did it again. Nope, don't panic. We got through the Cold War and we'll get through this one, too.

Ninth, and most important, summer 2008 is almost over. Enjoy these last few days and leave it to Condi Rice and George Bush to worry about Putin. Then, panic! Ooops. I did it again. No, seriously, enjoy the summer. This one will never come again.