Main Holdings – Index Funds with Stocks & Bonds for the Core: time and time again, people try timing the market … only to lose large sums of money they cannot afford to part with. Study after study shows that, by and large, active investing (including: buying funds that are actively managed) just does not pay off when you consider unpredictability, judgement error, market swings, expenses and taxes. Broad-index investing is typically much safer – particularly using a combination of less-correlated assets with growth potential and varying degrees of risk.

• But aren’t stocks a better bet for long-term growth? Stocks may be slated to grow faster, but bonds are slow-and-steady elements that can balance out the high ups and deep downs of the market … for long periods, bonds can beat out stocks by a hefty margin, as the last decade has shown. Not sure where to start? Go ahead and …
• Shoot for a so-called ‘lazy portfolio‘ or simple indexing strategy. These two asset categories (bonds and equities) are also good broad coverage for ‘short term’ disasters – while equities (stocks and stock funds) could drop due to economic downturn or global emergency, fixed-income elements (bonds and bond funds) should hold their own … at least assuming the government does not default. Plus an easy few-fund portfolio is easy to buy and hold instead of tempting you tinker with every momentary market shift.
• Consider going global in stocks and/or bonds: if a disaster is localized in one area (city, state or country) the regional or national stocks and bonds could suffer, so international diversification is a smart play for people with even a remote concern about site-specific emergencies. There are risks with going abroad to buy (currency-related and otherwise) but staying too much at home puts a lot of eggs in one basket, too.

Diversification – the Secondary Role of Sectors, Real Estate & Commodities: many would argue that commodities, real estate and other specific sectors are in some kind of a bubble, but predicting the future is tough and people tend to overemphasize what has done well in the past. As such, it is probably best to consider these kinds of investments secondary in most cases, though, of course, arable farmland and physical goods could come in extremely handy during economic emergencies or outright disasters.

• Buy real estate for yourself first, investment second: as the old argument goes, we all need a roof over our heads … consider real estate first and foremost as meeting a basic survival need for shelter. That said, homes and other properties tend to keep up with inflation over the long haul (short-term credit crises aside) and thus also make for a long-term inflation hedge.
• Sector betting is just what it sounds like – a gamble: there may be a case to be made for investing in under-performing sectors, but buying into an outperforming means counting on momentum when many investments, in reality, revert to a mean over time. In other words: you may be buying expensive shares that, in the cyclical course of the economy, will devalue again as other sectors rise.
• Gold, precious metals and physical goods: here is where it gets tricky. Storing gold, silver and especially heavy-weight metals like copper is burdensome to say the least, but investing in ETFs or other once-removed paper holdings may not provide the sense of security you are looking for. History seems to show a real benefit to holding a small amount of these assets for diversification purposes, but too much could put you at other kinds of risk for short-term and direct losses, while also adding tax headaches if and when they need to be sold.

The number one investment killer – worse than long-term inflation or short-term equity bubbles – is often the investor. Say what? Yes, the biggest loss potential in most portfolios comes from not staying the course – selling low out of fear and buying high out of greed. Ultimately, the best investment advice anyone can give you is quite simple: do the research, know your aspirations (as well as your limitations) and invest in something(s) that will allow you to sleep at night and perform well in various scenarios.

Thus, a final reading point for someone who is less concerned with capital appreciation and more concerned with capital preservation (return of investment over return on investment!): a Harry Browne-style permanent portfolio of (25% each) stocks, bonds, cash and gold. Why? History has shown that each of these assets “has its day” – recession, growth, deflation and inflation all have different impacts on these. The catch is that during periods of economic stability and success the cash and gold will essentially just sit around. However, during times of trouble they will also hold their value, and if the economy is suffering the bond holding may be doing well too.

So when he found himself sideways and pierced in three places, he was surprised and shocked – and fortunately in shock, or the pain would have no doubt been unbearable. The first went through his leg, breaking no bone. The second through his torso, amazingly missing vital organs. The third and final one went into and back out of his neck, though managed not to sever the spinal cord. Astonishing luck, all things considered.

But everyone knows you cannot always remove an offending object on the spot for risk of doing more damage, or speeding up a bleed out scenario. So what did they do? Ice. Lots of ice. Directly on the steel, below the man and above the ground … so they could melt the steel bars one by one without boiling him in the process.

In the end, he was taken to the hospital with the bars still in him – carefully carried to a stretcher and hauled away in an ambulance. If there is a lesson to be learned, it is perhaps summed up best on the cover of the Hitchhiker’s Guide to the Galaxy: don’t panic. If anyone in the situation had rushed to pull him out, or if he had wiggled and squirmed to get free, it is very unlikely he would have survived. Patience, as they say, is a virtue -but sometimes that is hardest to remember when it is needed most.

Local (Town or City): A local town, city or metropolitan area street map can have sudden new value in strange and unfamiliar situations – the normal priorities for places and locations can shift like fault lines underneath you. Whether you need to find particular resources or not will be hard to say ahead of time, but carefully marking up routes on a spare copy can help you mentally map routes and potential destinations ahead of time.

Regional (County or State): A broader regional hybrid road and topography map is handy should have to abandon an area entirely during a displacement event (such as a hurricane). Vehicle-oriented maps are not made for off-roading it – a topo can provide helpful tips about both natural resources and harder terrain should you end up having to set off on foot or otherwise leave the beaten path.

National (Interstate or Country): The bigger it gets the more extreme the disaster likely to be associated with needing to a map. A local one is good for a flood, a regional for a hurricane but a national … well, things would have to go seriously wrong for that to happen. This might not be a map you need or want in your short-term Bug Out Bag, since it is really not geared for the long-distance, cross-country survivalist. Moreover, for it to feature enough detail to be useful over longer treks it would have to be big (a road atlas) and waterproofed too.

Depending upon how you choose to pack emergency supplies, these maps might all fit a different part of your ‘survival set’ – or you might want to duplicate the medium-range one for both your BOB and longer-term pack. Another option is to create duplicates of each so you can mark up one experimentally, personalizing it without compromising your primary copy. Federal agencies like FEMA might be helpful, or they might not arrive in time – either way, it pays to be prepared.

Second, the fatal mid-level fall: cats dropping more than six stories (but less than nine or ten) tend to be in the most danger of death or severe injury – as they accelerate downward, their fight their descent with paws outstretched and often end up hitting head first. Ouch.

Finally, the stranger higher-level plunge: after they reach terminal velocity (the rate at which a falling object no longer accelerates), the cats relax, let their arms go up and land largely on their bellies, which can handle the impact better than their limbs or heads.

So, counter-intuitive as it may be, cats once again prove to be mysterious creatures with curious powers – this time, though, it is not about superstition or religion, but scientific studies that show a fascinating side to our favorite felines.

When rain and thunder started along a rural stretch of highway, a hitchhiker without a ride took refuge in a nearby silo. As the weather got worse, a tree fell and smashed in the top portion of his hiding place, blocking his exit.

Without food or water, but with some rope and a lighter, the choice was neither easy nor obvious, but with time passing and no one coming within earshot there was one way out: intentionally cause the particulates inside the silo with him to explode.

This is something that has been known to happen by accident, and is often a source of great fear for those working with, in or around silos … the idea of doing it on purpose and while you are within its walls … can you even imagine?

Amazingly, he survived. The resulting blast blew him clear and the rope (which he tied before dropping his lit Zippo) snagged him on the way out, slamming him back against the outside of the silo. Sounds like science fiction, right? Well, it came from a 1980′s issue of Reader’s Digest – feel free to verify it for yourself.

Survival Knife Dos: Full tang is a must – the steel should extend all the way through the handle so there is no chance of it snapping off and leaving you holding a plastic hilt.  This is why a multi-tool or folding knife are poor alternatives, even if they are more compact and multi-functional respectively. Something that has an easy boot or belt strap, or can be otherwise attached on the outside of your clothing or gear for easy access is ideal. There are a number of Army, Navy and Air Force knives that fit the bill nicely, as well as a variety of hunting, wilderness and other outdoor-intended possibilities.

Survival Knife Specs: So, the ideal survival knife is solid steel, easy to access and … what else? It varies from person to person, but for most folks a blade length of 3.5 to 5.5 inches is probably ideal, erring on the thicker side to keep it from breaking as well. Long ones are tempting, but less handy in general for this purpose – even shorter would likely be fine too. Thee seductive teeth of serrated knives can be a temptation too, but they are not as useful as they look, and are a good deal harder to sharpen (sometimes reducing the sharp area by 30 to 40 percent or more). Shoot for a straight and solid blade, well-weighted and (for saltwater use in particular) stainless or at least rust-resistant.

Gold as an Investment Strategy: studies have come to various conclusions (some of which conflict with one another), but a dominant opinion points toward gold being valuable within a stock-and-bond portfolio only insofar as it adds a non-correlated, inflation-protected component to the larger whole. In other words: gold can make sense as a serious investment, but has to be carefully weighed within a whole investment strategy. If you are just now thinking of buying gold for the first time, consider your motivations: are you chasing past returns or have you seriously studied the pros and cons of your choice?

Gold as a Hobby Collectible: everyone has there hobbies, and if you like having, holding and showing off old coins, so be it. Like any hobby, it can be cheap or expensive and fulfill various needs within your life – of course, this tends to have a lower barrier to entry than most (perhaps you should start with silver and work your way up).

Gold for Survivalist Barter: this is a widely debated topic with no clear-cut answer. In some serious disaster scenarios gold can be virtually priceless, purchasing one’s way out of a war zone or buying survival essentials when local currencies go bust. Beyond a certain point, it may or may not hold its value – a sharp stainless steel knife or pack of salted crackers could save your life in a situation where gold would not. In this case, clarify again for yourself what the role of gold (and/or other precious metals) is within a larger survival plan – this white/yellow metal will do wonders in some cases but without food, water and shelter it is just another shiny rock.

Now comes the tricky part: most people want gold, silver, copper or whatever else for more than one of the above reasons. This is why it is particularly important to be clear about your own purpose for ownership. If you want it for end-of-world scenarios, then holding a paper slip (or digital, for that matter) may not do you much good when lines of communication go down or databanks are destroyed. For investment purposes, though, it is exceedingly impractical due to risks and costs to have gold physically on hand, making stocks, options or other such holdings ideal. Then again, collectors can amass a great deal as well – too much to have in their home – which could make secret hiding spots a tad too risky and a local bank vault (with personal safety deposit boxes) the best bet. The key, regardless, is not to go to extremes – holding just gold will likely end up being a lot like holding just cash … sure, it holds its value, but it doesn’t appreciate consistently or throw off dividends like stocks and bonds. A mix may be best, depending on your goals, and a rule of thumb might be: no more than 5% to 10% of your holdings, regardless.

Food & Water: These are things we take for granted, but they are not always available – and snacking on a leather belt or dropping tablets in seriously contaminated water … well, those are not as romantic, practical or safe as they may sound in the stories of war heroes. While essential, this category is easy: some dense, high-impact CLIF Bars and a few liters of water will do the trick for a few days. But wait, what about filtration? Forget it – better to bring along something simple, small and stainless steel in which to boil your water clean. Most filters that would be sufficiently useful are not going to be small enough for a BOB.

Fire: Heat is nice, light can help you see – combined with smoke, it works well for signals too.  All that, and boiling water. A disposable BIC is often overlooked but in most cases will work just fine – best, of course, to supplement it with some waterproof matches and other weatherproof fire starting tools to be doubly safe, though).

Shelter: The tricky part about shelter is that it that serious ones tend to take up a lot of space, and there are often organic (in nature) or build (in urban environments) places one can hole up if need be. Still, it never hurts to have a reflective emergency blanket or two and definitely a change of clothes if they fit – ideally ones to provide weather-appropriate protection (which can double as  a DIY solar cooker too). Should you carry a sleeping bag and/or tent if you can? Sure, it should help more than hurt, but can also weigh you down unless you live in some place with extreme temperature variation from day to night (or perhaps seasonal – but then you can adjust your BOB by time of year as well).

First-Aid: While food, water, fire and shelter are common-sense basics, we tend to take access to medicine, bandages and so forth somewhat for granted. Why? For one thing, we do not need them in our cushy day-to-day lives terribly often. For another, when something truly bad happens we know there is always an emergency vehicle on call and functional hospital close by. That may not always be the case. It helps to carry everything from the obvious basics (aspirin and band-aids) to base-covering items that can help deal with sprains, breaks, burns and bites from long or short-range disaster travel.

Navigation: Used to your GPS and following regular roads? That landscape can change quickly under certain conditions, so having a few maps in hand and a compass cannot hurt. Best to pack these in a waterproof container (or buy laminated maps in the first place). Make sure to cover a few scales – very local, regional and perhaps even a whole state topographic map. Trouble finding laminated ones? You can always buy a regular map, cut it up (so it folds more easily when laminated, like the store-bought ones do) and then have it professionally plasticized – REI also lets you print out maps of particular regions on demand in various formats and with moderate moisture resistance.

Weapons & Tools: Hopefully you won’t find yourself face to face with a predator (animal or human), but a sharp knife is good for more than just self defense. From chopping wood to cutting rope, it can help prepare traps for food, build fires, assemble shelters and perform emergency surgeries under extreme conditions. Ideally, take three types: a folding one you can fit in your pocket, a stronger full-tang one for heavy-duty work and a multi-tool packing other odds and ends. Now, it might be tempted to pack all kinds of things, but remember: this is a temporary survival kit – not a full-on wilderness expedition pack.

Odds & Ends: Some other good things to include: flashlight, duct tape, a tarp, a small gun or other shooting implement (can even be a simple slingshot) for hunting. Essential medicines are a must as well – so either include those in a first aid kit or put them in a more-accessible pocket. Got glasses? Pack your extra/old pair – better an outdated prescription than simply relying on the ones you are wearing not to break. And there is no reason not to add a survival guide into the mix – though reading one beforehand is probably better.

Missing Something? One way to double-check that you have what you need is to consider what you would need to pack in other situations. What do you carry with you when you travel on a plane, or go camping, or simply take a road trip? You might not need all the items you come up with but there are bound to be a few you will want from the mix. Regardless, best to build a checklist first and start from the most to least essential contents – you do not want to gear up with a tactical rifle you cannot ultimately fit in your backpack. Whether you are stuck in the wild or worried about an urban zombie invasion, consider the order of things presented above – weapons come later for a reason.