The dollar was at the top of the international currency heap for decades - but recently its position as king of the mountain has come under question: with the rise of multiple other nations and the debt from wars and the financial crisis, will America maintain her position as leader of the free world? And more importantly, what would it mean for our currency, our savings and our finances if we don't? Many ask if there is an alternative to the dollar that could (and may) replace it as the global currency.
Thankfully, regardless of what the reserve currency is, there are ways that you can protect your stock portfolio (and therefore college and retirement savings).
The International Monetary Fund (IMF) seems to be leading the charge against the dollar as the currency reserve money.
A report they released last week showed that by using a fixed basket of international currencies, instead of just one currency, you could have bonds for multiple governments instead of just the traditional US Treasury Bonds.
Though this particular idea is new, the idea of reducing American dependence is not.
Many nations are trading around US dollars, and even Americans are participating in international stock trading.
Does trading in international currency or ETF currency baskets sound like something that could work for your long-term investment plans? Do you have a financial advisor that can help guide you in the direction of what's best for your future? Financial advisors are surprisingly affordable, particularly fee-based financial advisors.
They work on a commission-like system and only get paid when your stocks perform well, so it's in both of your best interest to see your savings do well in the market.