Odds ‘n Sods:

F.J. sent this link, ‘LighterBro’ Turns Common Bic Into Knife-Equipped Multi-Tool, a simple Ten buck tool that looks pretty neat, and reminds us that “one is none.”

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From G.G.: Reviving a Life Saver, the Tourniquet

Article quote:

“Only 2 percent of soldiers with severe bleeding in those countries (Iraq and Afganistan) died compared with 7 percent in Vietnam in part because tourniquets were in widespread use and the injured were quickly transported to doctors. “

HJL Adds: Our own Medical Director in the local EMS has notified us that in the next round of protocol updates, we can expect tourniquets to be back. Our 30 minute transport time is pretty close to what the military has experienced in the last 10 years.

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Brandon sent this in: Mexican Citizens Topple Cartels And Are Rewarded With Government Retaliation

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An anonymous reader sent this in: Real Cellphone Tracking \

Article quote:

The Ukrainian government already tried banning protests, which didn’t work out too well for them. Then the New York Times posted this news article today. Something really stood out to me:
…on Tuesday, sending cellphone messages to people standing in the vicinity of the fighting saying, “Dear subscriber, you are registered as a participant in a mass disturbance.”

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Daniel Valles let us know that his Disaster Crash Course Digest Vol. I available now. This contains his top ten tutorials and is available in a downloadable PDF or printed version.





Notes from HJL:

January 23rd is the birthday of John Moses Browning, (born 1855) the brilliant designer of dozens of guns including the M1911 pistol, Browning Automatic Rifle (BAR), and the venerable M2 .50 Caliber Machine gun. The latter is still in service in at least 95 countries. And I wouldn’t be surprised if it is still in service in 2075 or even 2100.

Pat Cascio has decided to cap his pen and retire from his position as SurvivalBlog’s Field Gear Editor. His last reviews will be posted in April. Please don’t send him any more products for test and evaluation.

Today we present another entry for Round 50 of the SurvivalBlog non-fiction writing contest. The $9,700+ worth of prizes for this round include:

First Prize: A.) Gunsite Academy Three Day Course Certificate, good for any one, two, or three course. (A $1,195 value.) B.) A course certificate from onPoint Tactical. This certificate will be for the prize winner’s choice of three-day civilian courses. (Excluding those restricted for military or government teams.) Three day onPoint courses normally cost $795, and C.) Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources. (A $350 value.) D.) a $300 gift certificate from CJL Enterprize, for any of their military surplus gear, E.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $300 value), F.) A $300 Gift Certificate from Freeze Dry Guy. G.) A $250 gift certificate from Sunflower Ammo. H.) A roll of $10 face value in pre-1965 U.S. 90% silver quarters, courtesy of GoldAndSilverOnline.com. The current value of this roll is at least $225, I.) Both VPN tunnel and DigitalSafe annual subscriptions from Privacy Abroad. They have a combined value of $195. J.) KellyKettleUSA.com is donating both an AquaBrick water filtration kit and a Stainless Medium Scout Kelly Kettle Complete Kit with a combined retail value of $304. and K.) APEX Gun Parts is donating a $250 purchase credit.

Second Prize: A.) A gift certificate worth $1,000, courtesy of Spec Ops Brand, B.) A Glock form factor SIRT laser training pistol and a SIRT AR-15/M4 Laser Training Bolt, courtesy of Next Level Training. Together, these have a retail value of $589. C.) A FloJak EarthStraw “Code Red” 100 foot well pump system (a $500 value), courtesy of FloJak.com. D.) $300 worth of ammo from Patriot Firearms and Munitions. (They also offer a 10% discount for all SurvivalBlog readers with coupon code SVB10P.), E.) A $250 gift card from Emergency Essentials F.)A full set of all 26 of the books published by PrepperPress.com. This is a $270 value, G.) Two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value). H.) EP Lowers, makers of 80% complete fiber composite polymer lowers for the AR-15 rifles is donating a $250 gift certificate, I.) Autrey’s Armory — specialists in AR-15, M4s, parts and accessories– is donating a $250 gift certificate, and J.) Dri-Harvestfoods.com in Bozeman, Montana is providing a prize bundle with Beans, Buttermilk Powder, Montana Hard Red Wheat, Drink Mixes, and White Rice, valued at $333.

Third Prize: A.) A Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.), B.) A large handmade clothes drying rack, a washboard and a Homesteading for Beginners DVD, all courtesy of The Homestead Store, with a combined value of $206, C.) Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy. This is a $185 retail value, D.) Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security., E.) A MURS Dakota Alert Base Station Kit with a retail value of $240 from JRH Enterprises. F.) Mayflower Trading is donating a $200 gift certificate for homesteading appliances, and G.) Ambra Le Roy Medical Products in North Carolina is donating a bundle of their traditional wound care and first aid supplies. This assortment has a retail value of $208.

Round 50 ends on January 31st, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.



The Poorboy Version: Prepping When You’re on a Tight Budget, By N.S.

Awhile back my husband and I happened to both lose our jobs within a two-week period. (I was doing in-home care and the client decided to enter a Home. Meanwhile, the factory where my husband worked went bankrupt and closed its doors.)

Due to some peculiarities of our situation (my work being part-time and his factory neglecting the paperwork) neither of us could get unemployment. So we had literally zero income for around six months of job search. We sold some things, the truck got repo’ed, etc… During this time we learned a lot about frugality, what true luxury is, and how far you can stretch when you really have to. Here are some basic principles in no particular order:

1. There is always a way to do it cheaper.

It might not be as fast, efficient, neat, or convenient…but there’s always a way. In the overwhelming majority of instances, you are trading your money for someone else’s time. (Examples: store bought bread costs up to ten times as much as home-baked. A bus ride–for those on transit lines–costs, while the mare is much cheaper it takes longer. Homespun hats and mitts and scarves take LOTS of time, but very little money.)

2. A good proportion of the time, homemade/cheaper translates into better.

Think about it. When you’re doing it yourself, you are the quality control. There are fewer unpleasant surprises because the factory QC was tiring toward the end of a shift. Another example: home-canned meat is fairly simple, and I know there is NO gristle in it because I didn’t allow any. I could buy canned meat at more expense, but then I’d be subjected to someone else’s idea of “edible.” (We pause here for a reminiscent shudder about the time I opened a store bought can of tuna which turned out to be through and through with worms.) I also home brew, and I’ll say here that of the best beverages I’ve ever tasted, store bought stuff barely makes the top ten. (Other home brewers are generally willing to barter, too.)

3. Sometimes older is better.

I habitually haunt thrift shops and secondhand stores. It’s amazing what people will discard in not only usable but like-new condition. And sometimes it’s things that you simply can’t buy–either that, or the price is prohibitive. Old Revereware, for instance, with its thicker copper bottom to affect the heat transfer of the pan, is more responsive for cooking. The copper in newer pans, for the past few decades, has been nothing but a thin aesthetic layer. With old cast iron, let someone ELSE do the work of seasoning it and wearing off the rough casting surface. Old furniture is made of honest planks instead of pressboard. Wool, silk, cashmere, linen, and angora have all turned up on the shelves where I shop from time to time.

4. If it ain’t broke, don’t fix it. If it IS broke…

Repairs will necessarily be a large part of your life should SHTF or TEOTWAWKI. Learn to fix things. Plastic can be repaired (depending on type) by “welding” it with a candle flame, drilling paired holes along the crack and “stitching” it closed, applying the eternal duct tape, or gluing. Other times, plastic must be replaced. I have whittled wooden elements to replace broken plastic ones– cut to size, file to fit, and paint to match. Sock repairs are best darned in, not sewn. Learn to darn and effectively patch. Also, learn how to splice rope, sister a wooden beam, weld a straight bead, and suture when necessary. (Repairing yourself, eh?)

5. Even a small garden is better than none.

We were lucky in that our layoffs happened at the start of the growing season and I could expand our planned garden. I did learn that carrots dislike our soil, but potatoes love it, while our plot (hemmed in by Other People’s Timber on three sides) simply does not get enough sun for corn to mature. Tomatoes limped along (that sun issue again), but the hot peppers thrived. Beans and peas took the middle line, neither withering away nor flourishing. For long-term frugality, save your seeds. I found not only heirloom/open-pollinated varieties for sale, but also advice, techniques, and support at Seed Savers Exchange– www.seedsavers.org. In addition to freeing you from the chains of big agriculture, you will gradually select for the traits that favor YOUR microclimate, YOUR soil, and YOUR growing conditions. Besides, fresher is better. I haven’t bought greens in years. During the winter, indoor-sprouted microgreens provide variety to the routine of canned and frozen vegetables, and during summer the cutting patch thrives also.

6. Skills cost nothing.

Practice, practice, practice. Unused skills quickly fade.”Use it or lose it” is a truism for a reason. Even if you can’t afford ammo, dry-firing drills and practice keep the muscle memory going. If you can learn to enjoy skills, practice your hobby, such as sewing, and double- or triple-task by providing your own entertainment while honing your skills.

7. We meat again.

Stretch that food to its limits also. One of my favorite frugal meal(s) involve a chicken. (Stay with me here.) Chickens can be bought whole for very little per pound on sale. The first meal is Roast Chicken, with vegetables in the roasting pan. Make gravy to pour on the vegetables. Second day, prepare Hot Chicken Sandwiches by slicing up some of the rest of the meat and serve with the rest of the vegetables on thick-sliced bread, smothered in gravy. Third day, serve Chicken Pot Pie. To make the Chicken Pot Pie, make a shortening crust or a batch of biscuits, dice up the main pieces of remaining meat (freeze the bones and remaining scraps), mix with the rest of the gravy and some supplemental vegetables (assuming the roasted ones are all eaten by now), cover the stew with crust or biscuits, and bake until done. Fourth day, enjoy leftover Pot Pie. Fifth day (or at some indeterminate date in the future), serve Chicken Soup by boiling up the chicken frame, picking off any remaining shreds of meat, seasoning the broth well, and adding more vegetables and some noodles, rice, potatoes, or dumplings.

8. Self-medicating isn’t a dirty word.

We all do it whenever we pop a Tylenol for a headache. When you have no money and no insurance, your view of self-treatment may have to expand. I’ve stitched myself up before when it was necessary. It hurts, yes, but no more than a badly stubbed toe (for each stitch, mind you…and yes, it is cumulative). I was already a practicing herbalist for my own needs before this happened. Therefore, I had a stock of homegrown herbal remedies, including the ones that must be prepared ahead of time. But even without that stock, much of the time you just need to get out of the way and let your body heal itself. (There are exceptions, of course, but for most acute issues, they WILL get better on their own given time and minor first-aid.)

9. If you wait long enough, it will go on sale.

Clearance aisles and markdown racks. Sadly, some grocery stores refuse to mark down even day-old bread; avoid them for places that do. Buy your candy after Halloween; the cheapest source for baking chocolate is leftover bagged Halloween and Valentine’s Day candy. Furthermore, grocery stores generally operate on a rotational basis. By saving the advertisements over time (typically six to eight weeks) you can figure out their cycle. For example, if the local store puts bricks of cheese on loss-leader sale every five weeks, it would be silly to buy it on week four just because you ran out. It’s far more sensible to simply wait a week to restock. I highly recommend a full-size chest freezer for taking full advantage of food bargains. (Our freezer was a wedding gift we had before our personal financial crisis.) Our freezer would have been great for game, if hunting in our area were more than a gamble. Ted Nugent has been heard to characterize the blacktail deer in its native habitat as the most challenging critter he ever pursued, and after a few years of similar pursuit I’m inclined to agree.

10. Little by little gets you there in the end.

Adding one “storage” item to each grocery list was fairly painless, even when the grocery money was twenty a week. (Twenty per week is not as impressively skinflint as it sounds sincere there are only the two of us.) Add one extra gallon of gas per fillup. Stretch a tea bag to make two cups. The ocean is made of little drops of water and the mountain of little grains of sand. They do add up when you remember to be consistent.

A note on tea: I freely admit it’s my favorite beverage, and what’s not to love? In addition to black/green teas being good for you, it’s inherently healthier than raw tap- or well-water due to boiling during preparation, and tea comes in so many flavors and varieties that it boggles the mind. If we expand the definition to herbal “teas” or tisanes, not only do they give you the benefits above but they’re also frequently free for the growing or gathering. (Caveat: always be POSITIVE of what you’re picking–identify it from a field guide, preferably one with photos, if you can’t arrange for an experienced gatherer to tutor you in person.) Some of us can even grow the true tea plant, Camellia sinensis, in the right climatic zone (USDA 7-9, I believe). Even if you have to purchase your tea, it’s still one of the cheapest alternatives to plain water.



Letter Re: LDS Buying Experience

I ordered 10 cases of hard red wheat in #10 cans from the LDS store online. The charge was authorized on the card, but the hold expired and the charge initially did not go through. I received a message telling me that item was back-ordered, I could cancel at any time,and that my card would be charged when the wheat was sent. The boxes came 5 months later, almost to the day. All was as advertised, and the card was charged at that time. The amount charged was $28/box, with no shipping added. I believe this is the best price out there if one is willing to wait. –Prepper Tax Dude

HJL adds: I haven’t shopped at the online LDS store and haven’t been to the local LDS store since the new changes have been implemented regarding the cessation of bulk sales. The local store was always the best price (by up to 75% less) than most online places. However, we bought in bulk and packaged it ourselves. Since the bulk purchasing has been done away with, we are always interested in stores that can replace that valuable resource.



Three Letters Re: SurvivalBlogs New Managing Editor

We have three responses to the introduction of our new Managing Editor today:

Greetings, Mr Rawles,
Wow – I just read the posting on your new hire and I’m absolutely blown away. What an outstanding set of qualifications! I’m glad to have submitted my resume, but clearly you have found a tremendous candidate with very high credentials. Congratulations and may this new working relationship bear much fruit in the years ahead. –J.M.

J.F.J sends this response:
>Please tell him that I said “WELCOME ABOARD!”. And just one more thing… with his impressive resume, can you also please tell him that I am “reserving” a spot for him on my compound. We (our clan) could certainly use a patriot like him. WELL DONE Mr. Rawles! Sounds like a GREAT fit!
Signed… Now anticipating being even a more devoted reader.

And finally, P.L sent this letter:
Good catch on the new editor!! You’re right, his background is dazzling.

HJL Replies: Thank you for those kind words. SurvivalBlog has long been my favorite blog because of Jim’s high editorial and content standards. You could always rely on information found here to be accurate and useful. It is my intention as the new Managing Editor to maintain those same high standards. SurvivalBlog is a success because readers like you care about it.



Economics and Investing:

From J.B.G.: How to Survive the Coming Final Dollar ‘Bear Raid’

G.G. sends us this news article showing a Record 20% of Households on Food Stamps in 2013.

G.G also sent this: Argentines Must File Tax Report On Web Purchases.

Items from The Economatrix:

Why Is Goldman Sachs Warning That The Stock Market Could Decline By 10 Percent Or More?

Gold And Silver – There Are Reasons Greater Than Demand For Owning Them

Max Keiser: Economics Of Human Extinction



Odds ‘n Sods:

Roger E. sent: Sea, Shipping Container Cabin, Shelter, Home. (This was mentioned before in SurvivalBlog, but it bears repeating since the page has been updated.)

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We recently heard about some free homeschool curriculum resources, at HomeschoolCollection.com

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A reader forwarded this little jewel: Apparently, there is Massive Non-Compliance on Rifle and Hi-Cap Mag Registration in CT. The Truth About Guns reports.

“How is that there were 50,000 rifles registered versus less than 40,000 LCM’s [large capacity magazines] declared?Second, how do we reconcile 50,000 rifles against an official state analyst group suggesting over 370,000 rifles back in April 2011? And the same report estimated well over 1 million LCMs in CT back in early 2011.”

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ZDnet: CESG, the UK government’s arm that assesses operating systems and software security, has published its findings for End User Device operating systems. It seems that ubuntu is the most secure out-of-the-box. –From RLH

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J.B. sent us this additional video about a couple who built a house out of shipping containers in New York.

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A Reader sent this link in: Scientist exposes flu shot lies and media propaganda. HJL adds: I do not know what the author’s qualifications are to make claims like what are made in this video. However, I wanted to give this to our readers because the video has an excellent explanation of risk assessment. Our society is so “sales and marketing” oriented that we fail to teach proper risk assessment in many, if not most, situations. You can apply this single principle to every aspect of your life. Caveat emptor! (Let the buyer beware!)



Hugh’s Quote of the Day:

“The Napoleonic Wars gave the French the word bistro as a reminder of the rude, conquering Russian officers who demanded quick service in French cafes. Bystro means quick in Russian. Russian, in turn, got sheramiz avat, meaning to beg. Hardly any Russian today knows it, but this word comes from the French phrase cher ami. The starving, freezing French soldiers, retreating in disarray after the defeat at Borodino, would knock at the doors of Russian farmhouses and implore the farmers for food, crying: cher ami!” – Cameron Sawyer



Note from JWR:

Today we present another entry for Round 50 of the SurvivalBlog non-fiction writing contest. The $9,700+ worth of prizes for this round include:

First Prize: A.) Gunsite Academy Three Day Course Certificate, good for any one, two, or three course. (A $1,195 value.) B.) A course certificate from onPoint Tactical. This certificate will be for the prize winner’s choice of three-day civilian courses. (Excluding those restricted for military or government teams.) Three day onPoint courses normally cost $795, and C.) Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources. (A $350 value.) D.) a $300 gift certificate from CJL Enterprize, for any of their military surplus gear, E.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $300 value), F.) A $300 Gift Certificate from Freeze Dry Guy. G.) A $250 gift certificate from Sunflower Ammo. H.) A r oll of $10 face value in pre-1965 U.S. 90% silver quarters, courtesy of GoldAndSilverOnline.com. The current value of this roll is at least $225, I.) Both VPN tunnel and DigitalSafe annual subscriptions from Privacy Abroad. They have a combined value of $195. J.) KellyKettleUSA.com is donating both an AquaBrick water filtration kit and a Stainless Medium Scout Kelly Kettle Complete Kit with a combine d retail value of $304. and K.) APEX Gun Parts is donating a $250 purchase credit.

Second Prize: A.) A gift certificate worth $1,000, courtesy of Spec Ops Brand, B.) A Glock form factor SIRT laser training pistol and a SIRT AR-15/M4 Laser Training Bolt, courtesy of Next Level Training. Together, these have a retail value of $589. C.) A FloJak EarthStraw “Code Red” 100 foot well pump system (a $500 value), courtesy of FloJak.com. D.) $300 worth of ammo from Patriot Firearms and Munitions. (They also offer a 10% discount for all SurvivalBlog readers with coupon code SVB10P.), E.) A $250 gift card from Emergency Essentials F.)A full set of all 26 of the books published by PrepperPress.com. This is a $270 value, G.) Two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value). H.) EP Lowers, makers of 80% complete fiber compo site polymer lowers for the AR-15 rifles is donating a $250 gift certificate, I.) Autrey’s Armory — specialists in AR-15, M4s, parts and accessories– is donating a $250 gift certificate, and J.) Dri-Harvestfoods.com in Bozeman, Montana is providing a prize bundle with Beans, Buttermilk Powder, Montana Hard Red Wheat, Drink Mixes, and White Rice, valued at $333.

Third Prize: A.) A Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.), B.) A large handmade clothes drying rack, a washboard and a Homesteading for Beginners DVD, all courtesy of The Homestead Store, with a combined value of $206, C.) Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy. This is a $185 retail value, D.) Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security., E.) A MURS Dakota Alert Base Station Kit with a retail value of $240 from JRH Enterprises. F.) Mayflower Trading is donating a $200 gift certificate for homesteading appliances, and G.) Ambra Le Roy Medical Products in North Carolina is donating a bundle of their traditional wound care and first aid supplies. This assortment has a retail value of $208.

Round 50 ends on January 31st, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.



Introducing SurvivalBlog’s New Managing Editor

I am pleased to announce that following the review of more than 50 resumes, we have selected Hugh J. Latimer (a pen name) as our new Managing Editor. I consider him a perfect fit for the position. He will be taking over many of the day-to-day operations at SurvivalBlog, including editing letters and articles, compiling column items, writing some feature articles, creating and updating advertisement graphics, and posting the blog. Meanwhile, I will continue to be actively involved as Senior Editor. To distinguish between our posts and comments, they will either begin or end with our initials (“JWR” or “HJL.”)

For those who are curious, his pen name was chosen to honor Hugh Latimer (1487-1555), a Fellow of Clare College, Cambridge, and Bishop of Worcester before the Reformation, and later Church of England chaplain to King Edward VI. In 1555 under Queen Mary he was burned at the stake, becoming one of the three Oxford Martyrs of Anglicanism.

Here are a few details about Hugh:

  • A long-time reader of SurvivalBlog.
  • Has three college degrees (Engineering, Metallurgy, and Education), including one Master’s Degree.
  • Worked as a Technical Editor for five international technical journals, where he edited contributed articles as well as wrote more than 100 feature articles.
  • Holds a gunsmithing certificate from the Colorado School of Trades.
  • Certified as a firefighter.
  • Certified as an Emergency Medical Technician (EMT.)
  • An Eagle Scout and Scoutmaster.
  • A Libertarian, conservative Christian who attends regularly with two congregations.
  • Worked for a major astronautics company where he did engineering work on the Titan IV missile program and several NASA programs. (Yes, he really is a Rocket Scientist.)
  • Has several years of experience in RF, digital, and analog circuit design for both rocket flight hardware and ground support hardware. He has also designed custom magnetics for the space program.
  • Worked as a Technical Editor at a national laboratory.
  • Ran his own photography and graphics design business.
  • Created and managed his own rural high speed Internet access company, where he also developed solar-powered remote relay communications sites.
  • Has done web site design using native HTML and has used a variety CMS software.
  • Formerly worked at a high school teaching Honors Physics. He also wrote the curriculum for several science courses.
  • A former Unix Administrator and both a TCP/IP and Unix Instructor.
  • Many years of experience as a system manager for 14 different operating systems.
  • Computer system security expert.
  • Lives in a small town.
  • He was the owner-builder of four homes, including a large log home, and one that is geothermally heated.
  • His family gardens, cans their own food, raise chickens, make candles, and bind their own books.
  • He and his wife have homeschooled their children.

Welcome aboard, Hugh! – JWR



Building a Backyard Water Treatment Plant, by J.S.M.

Clean drinking water is critical to your survival, because without potable water you will die within a few days. I don’t intend to hammer away on this point, because everyone who visits this blog generally knows how important it is to have access to clean water, and this subject has been covered many times from many different angles. Many of us have several hundred gallons of water stored away in containers, some more portable than others. Some plan to rely solely on a Berkey water filtration system to filter surface water collected from ponds or rain catchment barrels. While the Berkey filters are excellent and water storage is a must, having these will not be good enough in a prolonged grid-down scenario. Your water storage may run dry, and your Berkey filters have a limited lifetime and may not be able to handle long-term filtering.

The Lord handed us a pristine planet, and though we may have polluted much of the water we have been entrusted with, He has given us the materials and intelligence necessary to purify our water. Most of the modern world relies on municipal water treatment facilities to provide them with clean water. Water flows from faucets and toilets flush with the flip of a lever as surely as the sun rises and sets. By paying the water company every month we are guaranteed an almost unlimited supply of clean water. Most of the time the public shows no appreciation for the system that delivers the water or knowledge of the process by which it is treated and delivered, but most everyone expects to be provided with water as though it were a birthright. The public generally does not question the quality or safety of their water while the nameless, faceless technicians at the utility company work their “magic”, and we generally put our faith in them to deliver. However, some of that faith has been shown to be eroding over the last few decades as more people have been relying increasingly on water filtration systems and bottled spring water.

I hope that the reader will understand that there is no magic taking place at water treatment plants, and that individuals are capable of treating contaminated water in their own home in much the same way as it is done at a water treatment plant. I should note that I do not advise anyone to drink water that may be unsafe, or to treat unsafe water for drinking. The materials and methods I describe may be hazardous if proper care and proper safety equipment are not used. Because I have no control over the quality of your source water, or the procedures you employ, I can not make guarantees and will take no responsibility for injury or illness that may result from this information. I am not providing explicit instruction or advice. In an extended grid-down scenario, however, almost every activity will come with a heightened degree of risk, and at that time only you will be responsible for making risk assessments concerning water availability and water quality.

I can say that I have personally used the method I am presenting here to treat and drink small amounts of water from a canal in the downtown area of a large southwestern city. The water I drank did not pass through a water filtration system as I advise in the final step below to insure absolute safety. I felt there would be no point in using the Berkey as part of the test because the Berkey is quite capable of handling contaminated water without prior filtering or treatment. My method is intended for a maximum production of just over 12 gallons of water per hour. This volume of water is more than suitable for bathing and cooking, and somewhat suitable for drinking. However, the final step for absolute safety would be a pass through a Berkey or similar filtration system or by boiling.

Required Materials

This is a list of materials you will need to set up your water treatment system and should not cost more that $200. [In 2014 USD]

  1. Aluminum Sulphate – Known as Alum, a 5lb. tub can be purchased at any pool supply store for $15. This is a type of flocculent which will make suspended solids in cloudy or turbid water stick together and sink to the bottom of the container. See flocculation in action in this video.
  2. Calcium Hypochlorite, commercially known as pool shock. A one pound bag costs $5 or less.
  3. Five gallon white food grade buckets, at least two.
  4. Five gallon colored non-food grade buckets, such as Homer bucket from Home Depot, at least three.
  5. Sturdy glass bottles with ground glass stoppers (laboratory grade glass) to safely store the calcium hypochlorite. These can be expensive, but Amazon has some very reasonably priced bottles.
  6. Basic pool chlorine/PH test kit. Buy additional large bottles of testing solution.
  7. Fifty-five gallon plastic drums. You should already have several of these in your backyard.
  8. Cloth filter. I use a Singed Polyester Felt Filter Media Fabric Sheet for use in aquariums.
  9. Hydraid Biosand Filter.
  10. Pool filter sand.
  11. Aquarium gravel. Ten pounds with smooth rounded edges approximately 1/8 of an inch in diameter to 1/4 of an inch in diameter
  12. Aquarium gravel. Ten pounds with smooth rounded edges approximately 1/2 of an inch in diameter to 3/4 of an inch in diameter.
  13. One gallon plastic jugs. Two or three will be enough, and they should be clean. Do not use milk jugs.
  14. Measuring spoons. This set should be dedicated for water purification and not used for cooking.
  15. Tuna Fish can, 4.8 ounce to 5 ounce. Can should be cleaned thoroughly.
  16. Twelve ounce jar or can with lid removed.
  17. Five pounds of non-galvanized iron nails, three to four inches long. The rustier the better, and if they are new out of the box, make sure they are wiped clean, and completely free of grease. This is only necessary if you are concerned about mitigating the arsenic in your source water.
  18. Activated carbon or charcoal pellets. These can be purchased at Wal-Mart in the aquarium section or at any aquarium store.

Some important notes on materials:

Pool Shock

Calcium Hypochlorite is a dry form of bleach with chemical compound Ca(CIO)2 better known as “pool shock” and can be purchased at Walmart, Home Depot, or any pool supply store. Avoid pool shock with clarifiers or anti-foaming agents. A concentrations of 78% or higher is preferred, but do not buy anything lower than 65% Ca(CIO)2.

This powdered form of chlorine is superior to liquid bleach because it has a very long shelf life, very compact and is highly portable. Calcium Hypochlorite is very caustic to the skin. The fumes can burn eyes, lungs, nasal passages and sinuses; seep into your food storage; ruin the biolayer in your biosand filter; and it will rust every tool in the shed if not stored properly. You must wear chemical resistant gloves and eye protection and work in a ventilated area when handling this stuff. I always handle Calcium Hypochlorite on the back patio, and only if there is no breeze. You do not want to be down wind if there is a breeze.

Pool shock must be stored in glass labware with ground glass stoppers only. Do not use mason jars, Dutch beer bottles with ceramic stoppers and rubber gaskets, or corked wine bottles. Over time, the chlorine gas will eat through rubber gaskets, plastic, cork, and even metal. So, do not take a shortcut on this because chlorine gas is no laughing matter.

For safety reasons, pool shock must be kept dry like regular dry pool chlorine. Refer to the safety guidelines on the packaging.

I keep my pool shock in reagent bottles, and I carefully pack the sealed bottles inside Home Depot buckets with bubble wrap to cushion the glass. I then seal the bucket tightly with the bucket lid. The bottles and buckets are clearly labeled with information about the contents, with warnings like “keep dry”, “caustic”, and “fragile”.

You might be thinking at this point, “Why take the risk? Why not just keep a few bottles of Clorox around instead of this dangerous dry chlorine?” Understand that liquid bleach has a short shelf life. It loses its efficacy at an unacceptable rate, and within a year or two your bleach will be useless. You cannot rely on weak bleach to disinfect your water. With unknown potency, you will be playing a guessing game with ratios, and over time you will effectively have no bleach at all. Consider the following:

  • Currently, a one pound bag of pool shock costs about $5.00 or less.
  • This one pound bag of pool shock has an unlimited shelf life, if it is stored properly.
  • A one pound bag of pool shock will make 128 gallons of stock chlorine solution, the equivalent of 128 gallons of bleach.
  • This 128 gallons of stock chlorine solution will disinfect 12,800 gallons of contaminated water.
  • If you factor in weight, cost, and value, there is no other item in your preps that can come close to a bag of pool shock. Twenty pounds of pool shock stored at your retreat translates into 256,000 gallons of clean water. Should you ever need to bug-out, one or two pounds would be very easy to pack.
Hydraid Biosand Filter
The filter

The Hydraid biosand filter stands two and a half feet high. It is roughly one and a half feet wide at the top with a taper leading down to a smaller diameter base. Unlike traditional concrete filters, which are often constructed on site, the Hydraid is plastic and very light weight when empty. The Hydraid looks a lot like a small round plastic recycle bin with a PVC pipe running up the length on the outside. For those unfamiliar with biosand filters, please look at this video.

The design of the filter is brilliantly simple in one sense because it looks to be just a plastic trashcan filled with four inches of rocks on the bottom, a few feet of sand on top and a PVC pipe running out of the bottom and up the side. The complexity of the design is not so apparent. The biosand filter works several ways:

  1. The first phase is biological predation where micro-organisms feed on dangerous pathogens. The top surface of the sand at the top of the filter perpetually sits below several inches of water, and develops a biological layer of beneficial organisms which consume and remove parasites and pathogens up to 99.8%.
  2. The second phase is mechanical filtration. The sand acts as a mechanical filter, physically trapping debris and pathogens.
  3. The third phase of filtration is adsorption. The filter media emits an electrical charge of sorts and pulls the remaining debris to it like a magnet.
  4. From this point, the water slowly filters down through the last few feet of sand which is devoid of light, food and oxygen, killing off any remaining organic pollutants and pathogens.

It is important that no chlorinated water, tap water, iodine, or chlorine gas ever come into contact with the biolayer because the disinfectant will kill off the beneficial organisms, thus destroying the biolayer. It is also important to place the filter indoors and in an area where it will not be disturbed. If the filter is placed in a high traffic area and it gets bumped or rocked, the biolayer may be damaged.

Contaminated water should always be poured onto the diffuser plate where it will drip gently down onto the biolayer. Water should never be poured directly onto the biolayer, as that too will damage it. By being consistent with your source water, the biolayer will develop organisms specifically catered to treat water from that source. A biolayer formed from canal water may not be so effective against pathogens from harvested rain water.

According to the Hydraid brochure, the filter is capable of producing 12.4 gallons per hour with intermittent use. This amount of water serves the daily needs of eight to ten people. If you consider that one person requires one gallon of water per day just to survive, 12.4 gallons per hour would be a luxury for you and your family in a long term survival scenario.

Triple Quest Company and ordering information

Before ordering, you must understand the intended application for this filter. The filter needs to be set up correctly with the filtration media. It needs to be primed for several weeks to let a biolayer develop, and it needs to be used and maintained on a consistent basis. None of this is especially difficult, but it does require some commitment, unlike ceramic or carbon filters which are more “plug and play”. In an extended grid-down scenario, as in months or years, the biosand filter would be a perfect choice. The biosand filter is not a good choice for those prepping for short term events like hurricanes, floods, or temporary civil unrest. Someone living in a remote area without well water but access to a stream or pond, could definitely rely on one or two Hydraid filters. A Hydraid would not be suitable for a vacation cabin because it would not be used and maintained with regularity.

From what I understand, the Hydraid is not intended for use in this country, and it is not marketed as a retail item. Triple Quest manufactures these filters for Non Governmental Organizations (NGO’s) like UNICEF who provide aid to families in developing countries. Triple Quest is geared for handling orders by the pallet load to be shipped overseas. Triple Quest is not accustomed to filling orders of one or two units for domestic use, so please take this into consideration when ordering your filter. By doing business with Triple Quest, you are supporting their humanitarian operations. Whether they would admit to it or not, they are doing God’s work by providing, free of charge to the poorest of the poor, a device to filter horribly contaminated water.

Though research has shown the Hydraid to be incredibly effective against biological contaminants, parasites, and pathogens, Triple Quest will not recommend it for general use in this country. The filter is intended for use by people in developing countries living in squalid conditions. It may be that another reason Triple Quest cannot promote these filters for the American market is because they have no control over the water source that the user may attempt to filter with their product. Should the user not follow the installation and maintenance instructions properly or try passing water contaminated with diesel fuel or chlorinated tap water through the filter, the end result would reflect poorly on the product and could leave the company exposed to endless litigation. This is just my guess as to why these filters are not marketed to the public.

To order a Hydraid BioSand filter, contact Triple Quest at (616) 254-4222.

Sourcing local filtration media

When you place your order for a Hydraid filter, do your wallet a favor and order the filter only. If you order the filtration media, you will have to pay shipping on 106 pounds of sand and rock, all of which can be purchased at a swimming pool store and aquarium supply store for a lot less. When you place your order, ask how many pounds of each type of media you will need. By purchasing just the filter, which includes the plastic body, lid, diffuser plate, and outlet pipe, you can probably spend about $70.00, including shipping. If you opt to pay for the load of sand and rocks, the cost will be at least twice that amount. It would make more sense to spend that money on an additional filter to give to a family member or friend.

Inferior designs and short circuits

Do not attempt to rig a common trash can with a PVC standpipe for use as a biosand filter. Most trash cans are made out of low density polyethylene and will easily flex and bow out at the sides, creating a short circuit of sorts where the water on top bypasses the sand filter entirely, running down the sides to the bottom where it will enter the outlet tube. The Hydraid is made from a higher density polyethylene and is rigid enough to prevent a short circuit. Likewise, never build a biosand filter with the standpipe tube running up the inside of the filter. This will also create a short circuit, as the water on top will follow the outer wall of the PVC pipe right down to the bottom, bypassing the filtration media. I have seen several how-to videos on how to construct one of these dangerously designed filters on Youtube, many of which are too painful to watch. This video demonstrates the wrong way to build a biosand filter.

Because the consequences of drinking contaminated water are so severe, stick with the design that is tried and true.

Sand

The best filtration media for the biosand filter is pool filter sand. This sand can be found at Home Depot and swimming pool supply stores. Do not use masonry sand, play sand, or beach sand. The size of a coarse grain of sand like what you would find in a sandbox is measured in fractions of a millimeter. The size of a fine grain of sand, like pool filter sand, is so small it is measured in microns. The organisms we are trying to keep from entering our bodies are in the micron range and will easily pass right through coarse sand. The size of the grains in a bag of pool sand are very consistent, ranging between 10-40 microns.

Activated Carbon (Charcoal)

If you do not have a Berkey system, you can make a carbon filter with activated charcoal/carbon pellets from Walmart or an aquarium store packed into a 2 liter plastic bottle with the bottom cut out. This carbon filter is in no way as capable as a Berkey, but it will remove excess chlorine, heavy metals, and fluoride from your water, making it safer and giving it a much cleaner taste. These pellets are relatively cheap and easy to store in bulk. Never filter your water with charcoal intended for BBQ grills, whether it was treated with lighter fluid or not. Grilling charcoal is not activated, so it makes for a poor filter. This type of charcoal is also very good at absorbing airborne contaminants right through its paper bag as it sits on the shelf at the hardware store for months on end. The charcoal will absorb nearby pesticides from the garden section and petrochemicals from the quick light charcoal bags sitting a few feet away.

Before beginning, understand that this process is not guaranteed to remove pesticides, heavy metals, or petrochemicals, unless a Berkey filter is used in the final step. It is important to find the cleanest water source possible. However, do not collect chlorinated water or add chlorine or any other disinfectants on the front end of this process. Chlorine and other chemicals will damage the biolayer of the filter. Once your biosand filter is set up and primed, you can begin. You can see the proper set up in this video.

  1. Collect surface water in colored 5 gallon bucket. Filtered water should never be poured into a colored bucket, and raw untreated water should never come in contact with a white food grade bucket.
  2. Cover the bucket and let the water sit undisturbed for a day.
  3. Sediment should have settled to the bottom. Place a cloth or a Singed Polyester Felt Filter Media Fabric Sheet over another colored bucket and carefully pour the clear water into the bucket, making sure not to let any sediment enter the second bucket. Clean out first bucket and rinse the Singed Polyester Felt Filter Media Fabric Sheet.
  4. Place a clean empty white bucket underneath the vinyl outlet tube of the Hydraid biosand filter.
  5. Remove the lid from the top of the filter and gently pour the water onto the diffuser plate. Be very careful that not even a drop of the contaminated water drips down into the clean white bucket sitting on the floor. Pour the water slowly and carefully. Place the cover back on top. Filtered water should begin flowing into the white bucket as the water in the filter finds equilibrium.
  6. Store the filtered water in a clean 55 gallon drum designed specifically for water storage.
  7. Repeat the filtration process until the drum is nearly full. Leave a little room for your chlorine solution.
  8. Put on eye protection and chemical resistant gloves.
  9. Pour a half gallon of water into a one gallon jug. Add 1/8 of an ounce (about 1/4 teaspoon) of pool shock to the jug. Cap the jug and gently shake or swirl the contents until they are dissolved. Fill the jug with water until it is about full.
  10. Pour one half gallon of the chlorine stock solution into the 55 gallon drum and let it sit for a day.
  11. Collect a small amount of treated water from the drum and run a chlorine test with your pool test kit. A chlorine reading under 0.2 parts per million (ppm) is too low, and is not considered safe according to the EPA. A higher chlorine reading around 3.5 to 4.0 will make for very unpleasant tasting water and can cause health problems over time, but you can be assured that all pathogens are dead. If your water has a chlorine level between 0.2 and 4.0 ppm, it is safe to bathe with, wash clothes, and probably safe enough to drink.
  12. For additional peace of mind and for improved taste, it would be a good idea to run your drinking water through a Berkey or other charcoal filter one or more times to remove all chlorine and any residual contaminants. The pre-filtering and slow sand filtering with the Hydraid will no doubt greatly extend the life of your Berkey filters.

If you wish to bypass the biosand filter altogether and run all of your water through a Berkey or other carbon filter, I suggest the use of Alum in addition to performing steps 1 through 3 above . The Alum acts as a flocculent, which pulls together all of the undissolved solids floating around in the water, most of which are too tiny to be seen. I have not been able to find any information regarding Alum and potential interference with the biolayer of the filter, so I never flocculate water before running it through the biosand filter. I imagine that the Alum would be indiscriminate, and remove many of the beneficial micro-organisms from the water as well as the dangerous pathogens.

  1. Collect surface water in colored 5 gallon bucket.
  2. Cover the bucket and let the water sit undisturbed for a day.
  3. Sediment should have settled to the bottom. Place a cloth filter or Singed Polyester Felt Filter Media Fabric Sheet over another colored bucket and carefully pour the clear water into the bucket, making sure not to let any sediment enter the second bucket. Clean out first bucket and rinse the Singed Polyester Felt Filter Media Fabric Sheet.
  4. Fill the empty tuna can with Alum, then scoop the Alum into an empty water jug. Fill the jug about half way with water, cap it and gently shake for a few seconds.
  5. Pour the alum solution into the bucket of water, cover and let sit for a day. Rinse out the jug that contained the Alum solution.
  6. After 24 hours, the water should be very clear and clean looking, and a fair amount of sludge and scum will be resting on the bottom of the bucket. Again, carefully pour the clear water into a clean bucket, making sure not to let any sediment enter the second bucket. Clean out first bucket.
  7. Add 16 drops of your chlorine stock solution, mix well, cover and let sit for a few hours. See step 9 above for instructions on making chlorine stock solution.
  8. This water is now ready to be poured into your Berkey or homemade carbon filter.

If you wish to treat more than five gallons of water at one time, refer to the following ratios to create a flocculent solution.

  • Five gallons of turbid (cloudy) water requires one half gallon of Alum solution made up of 5 ounces (empty tuna can full) of Alum powder mixed with one half gallon of water.
  • Ten gallons of turbid water requires one gallon of Alum solution made up of 10 ounces of Alum powder mixed with one gallon of water.
  • Twenty five gallons of turbid water requires two and a half gallons of solution made up of 25 ounces of Alum powder mixed with two and a half gallons of water.
  • Fifty gallons of turbid water requires five gallons of solution made up of 50 ounces of Alum powder mixed with five gallons of water.

One gallon of chlorine stock solution will treat one hundred gallons of biologically unsafe water.

One quarter teaspoon (1/8 of an ounce) of pool shock added to one gallon of water will make enough stock chlorine solution to treat 100 gallons of water.

Twelve to sixteen drops of stock chlorine solution will treat one gallon of water. Depending on the concentration of Ca(CIO)2 in the pool shock you use to make the solution, it may require more or less. Test chlorine levels with your pool test kit.

The process described in detail above can be broken down into four steps:

  1. Screening and pre-sedimentation.
  2. Coagulation, flocculation, and sedimentation.
  3. Filtration.
  4. Disinfection.

These are the same basic four steps that your municiple tap water is subjected to before it reaches your faucet. The chemicals, agents, and methods presented here are very similar to those used by water treatment facilities.

If you suspect that you have arsenic in your source water, there is a simple modification that can be made to a biosand filter. I tacked this on the end because most people will not have to worry about this problem. Parts of Southern California, Arizona, North Dakota, South Dakota, Minnesota, Maine, South Texas, North Texas, Massachusetts, and Montana have concentrations of 50 or more micrograms per liter in their ground water.

Some arsenic is naturally occurring and enters the water supply through runoff of eroded natural deposits. Runoff from farms and waste from glass and electronics production are other sources of arsenic. The modification I made to my Hydraid is a simple one, and it involves nothing more than a few pounds of non galvanized rusty iron nails placed on top of the diffuser plate of the biosand filter.

Without getting too technical, arsenic in the water is attracted to the iron oxide in the rust, which then flakes off and becomes trapped in the sand, never making it more than an inch or two into the filter. Without the rust, arsenic would pass through the sand unobstructed.

I hope that I have demystified the process for treating water and that there is no magic taking place at water treatment plants. All of these steps to treat water, except for chlorination, are just an accelerated simulation of the natural process of filtration and sedimentation. With these basic materials and instructions, anyone can begin learning how to treat contaminated water. By familiarizing yourself with the Hydraid biosand filter, you will learn the mechanics of how these filters work, and you will carry this knowledge with you wherever you go, whatever the circumstances. At some point, if the need should arise, you may even be able to construct a large capacity biosand filter out of concrete or masonry block, with scavenged materials. Now is the time to learn and perfect this skill.



Letter Re: How To Use Your IRA /401k to Fund a Survival Retreat Property

Jim,

I enjoyed the January 10 letter titled “How To Use Your IRA /401k to Fund a Survival Retreat Property“. I’d like to offer a few comments that your readers might find helpful.

My bona fides: I am a tax attorney who has dealt with self-directed IRA’s in audits and in Tax Court. I have gotten my clients some very good results in those arenas. I deal primarily with real estate in IRA’s. The same rules that govern real estate would apply to other non-traditional investments via Self-Directed IRA’s (“SDIRA”).

ROBS: The transaction that was described by “An Anonymous CPA” in the January 10th article was not a typical self-directed IRA deal. Rather, he described a very specialized sub-species of 401(k) deals known as “Rollovers as Business Start-Ups”, or “ROBS”. Understanding that context is key. The CPA’s information was accurate insofar as ROBS transactions go. While there are some common features, the posted information does not really apply to SDIRA’s in general. For more information on ROBS a little googling will uncover several outfits that promote such transactions. Most such outfits are one-trick ponies; they do ROBS and nothing else. One important caveat on ROBS: While technically legal (at least as far as I can tell, I’ve never researched ROBS to the nth degree, I refer ROBS work to the specialists), the IRS does not like them. The Association for Advanced Life Under-Writing posted the following on their website in a May 21, 2009 article:

“The IRS has placed a high priority, especially in the Small Business/Self-Employed Division, on so-called ROBS (rollovers as business startups) of which this transaction would be considered a part, even though it did not involve a rollover. Apparently there has been substantial advertising and marketing of the Roth IRA business technique and the Internal Revenue Service is determined to shut it down through the use of repetitive and detailed audits.”

While I have not dealt with such an audit, I think the quote is correct. ROBS are complex transactions, and one little misstep would allow an IRS auditor to impose severe penalties. If one wishes to execute a ROBS transaction, paying $6k+ for highly-specialized advice would be an absolute must. Further: Most of the ROBS specialists make a living off of selling ROBS and are therefore not very objective (“To a guy with a hammer everything looks like a nail”). In IRS parlance, they’d be viewed as “promoters”. It would probably make sense to have a second opinion from someone who does not make a living selling them.

Prohibited Transactions: As the name implies, Prohibited Transactions (“PT’s”) are bad. Specifically, if an IRA engages in a PT:

  • The entire IRA ceases to exist. All of the money in it is distributed and most or all of it is taxed as ordinary income. If the amount is large, the tax bracket will be quite high.
  • If one is under 59.5 years old, he’d almost certainly pay a 10% penalty on the amount distributed.
  • Additional penalties would apply, usually in the 20% to 30% (of the taxes) range, but sometimes higher.
  • Interest charges will apply as well.
  • In general, we advise clients that a PT in an IRA means that that 50%+ of the IRA will go to the government.
  • The size of the PT has no impact on whether the IRA gets blown. A $100 PT could blow a million dollar IRA. For this reason I am very, very conservative when it comes to PT’s. Anything that could even arguably be a PT should be avoided like a female intern avoiding a Clinton job offer.
  • PT’s in 401(k)’s are “less bad”. Heavy penalties would still apply, but a PT does not destroy a 401(k) the way it does an IRA. 401(k)’s have other advantages, including larger contribution limits and better asset protection features. 401(k)’s can be invested or “self-directed” in almost exactly the same manner as IRA’s.
  • I will describe PT’s in very basic terms. This description is not a substitute for good, customized advice. Rather, it’s designed to provide an overview of an important and complex subject. This topic is rarely covered as it should be. I put PT’s into three basic categories when I speak on the subject:
    • First: “Doing Business” with Certain People (IRC 4975(c)(1)(A) and (B))
      • No buying, selling, lending, extending credit, guaranteeing loans, leasing, provision of services or furnishing of facilities to/from disqualified persons (“DP”)
        • Subtle but important: “Furnishing of facilities” – e.g., IRA assets in your basement would be a problem even if you did not charge the IRA for the use of the space. Basement = facilities. Bad.
      • Key Disqualified Parties
        • Lineal descendants and ancestors, including those of a spouse
          • Direct or indirect
          • “Indirect” means no matter how you structure it, if the end result is the same as if it had been done directly, your IRA is toast. For example, instead of lending money to your father (who is a DP), you lend it to your cousin who lends it to his dog who lends it your dad. It’s indirectly the same as your IRA lending money to your father and therefore it’s a PT.
      • The IRS is very, very sophisticated when it comes to looking for indirect PT’s. They call and interview a number of persons during IRA audits and they ask probing questions. Thinking that “they’ll never catch it” would be a dangerous conceit.
        • YOU are a DP as to your own IRA, see below under “fiduciary”.
        • IRA Service Provider is a DP
          • For example, the lawyer who provides services to your IRA is a DP. As such your IRA cannot, for example, lease property him.
        • Fiduciaries are DP’s
          • These are people who can direct the IRA’s investments. You can do that, as can an investment adviser whom you’ve hired to help invest the IRA’s assets.
    • Second: Services
      • Technically a sub-category of discussion above – but not discussed or examined enough by supposed “how to” gurus, and one that often trips people up. I’ve never seen a good discussion of this issue on the net. So I treat it as a category of its own.
      • As a “fiduciary”, YOU are a DP with respect to your IRA
      • The statute therefore says that you (a fiduciary and therefore a disqualified party) cannot provide ANY services to the IRA.
      • The statute does not exempt services if they are provided for free.
      • So if you provide any services to your IRA, you have a PT.
      • Stick to directing your IRA, have others do the work
        • For example, you should NOT manage properties owned by your IRA. Nor should any other DP.
        • Do enough work, and you have a “service”
        • You can direct the IRA or direct others to do work on behalf of the IRA – but nothing more. You can research and choose investments – but nothing beyond that.
        • Investments can be anything that’s not banned. Certainly real estate, physical gold and silver (subject to certain restrictions), ammo, firearms that are not “collectibles”, etc.
      • The term “services” is not defined. When push comes to shove and the IRS creates a definition (one fine day in court), the court will defer to the IRS per the (unconstitutional, created in FDR’s time to enable the Praetorian bureaucracy) Administrative Procedures Act.
    • Third: The Sole Benefit Rule – the IRA’s assets must be invested for the sole benefit of the IRA. You may not use its assets for your benefit – no matter how small or indirect that benefit is. Several recent cases have hammered taxpayers for some pretty indirect benefits.
      • For example, if the IRA makes a loan to a company that is not a DP and the loan indirectly benefits you (e.g. – you own a small interest in the company or you work for the company, directly or indirectly) such a loan would be prohibited.
      • This means NO personal use of the property, no matter how minor or indirect.
        • Hunt on the IRA’s property once and you’ve blown the IRA. Stay overnight. Cut some firewood. Do a little shooting. If any of that gets caught, the IRA is simply done.
        • The IRS HAS caught such things. People fear them. When they start interviewing people close to the IRA holder (I have seen it done), you’d be amazed at who squawks. It’s human nature.
        • If someone close to you uses the property in the manner described above (a friend, a co-worker, a family member), same result.
        • I repeat: NO personal use of IRA property, no matter how indirect or how trivial.

Distributing half a house: As another reader posted, one can distribute partial interests in IRA property. This allows one to control the amount of income tax (in the case of a Traditional IRA, it wouldn’t matter in the case of a Roth) incurred each year.

Swanson case: That case is grossly over-hyped by promoters. They imply a ruling that is much broader than what the case actually said. No need to discuss the dull details. I’d simply add “cites Swanson a lot” to my “Danger Will Robinson IRA Promoter BS Detector”.

Government Seizure: I think a direct seizure like Argentina’s is unlikely in the US. My reasons:

  • While our Republic is in its death throes, certain traditions still have considerable residual power. For example, legislation or regulations require advance notice and follow a long, highly visible path. Ample warning would likely exist to react (e.g. – eat the penalties and distribute). Executive orders (that is, the Diktat so beloved by our Dear Leader) are really not a realistic means of executing such a seizure – the law itself is too clear. EO’s work when you can make a small tweak that has great effect (e.g. – we are not enforcing this subparagraph – you know, the one about deporting illegals, etc.). This could change if things got bad enough to enable the man on the white horse to do as he pleases – but we are not quite there just yet.
  • Too many people have IRA’s and 401(k)’s. An act as dramatic and direct as confiscation would wake even the sheeple.
  • Too many people in power have and use them as well – remember Romney’s $20M to $100M SEP IRA?
  • Indirect action will get the same result much more quietly (e.g. – QE) because most people will not do “extreme” things like invest in physical gold and silver. The little frog gets boiled slowly but thoroughly, no need to toss him in the microwave and make a mess that might get attention.

Equity Trust Company: (ETC) Ain’t what it used to be. For a number of reasons their service has declined dramatically. For example, deed transfers now take much longer, and are sometimes botched or forgotten entirely. Not ideal if for some reason one needs to make a fast transfer or distribution. There are lots of self-directed IRA custodians, do your research and find one that fits your needs. I hope ETC regains its former excellence, I do not think it likely.

Bottom line: IRA’s, 401(k)’s and other tax-deferred or tax-free retirement vehicles are excellent means of efficiently funding non-conventional assets such as land, buildings, timber, gold and the like. But our Byzantine tax system has added a price to such vehicles in the form of complex legal requirements. Ultimately the tax savings are worth the hassle. But please DO accept the hassle and get good advice. Ignoring the legal hassle or cutting corners (“I did it myself, how to is on the internet, it must be true!”) will cause a bitter harvest in favor of the IRS down the road. Do it right. – Prepper Tax Dude



Letter Re: Glock 27 .40 S&W Pistol

I thought Pat did a great review on this little pistol. Very thorough and insightful. While looking for a backup and off-duty gun, I purchased a G27in 1999 and have carried it daily since then. I spent the extra money and got mine with Meprolite night sights, but as he notes,the plastic with white outline are excellent. Pat does make a great point about the Glock 26 9mm being easier to shoot, though I have found that I shoot the 27 just about as well as my department-issued G22. Another point in favor of the 9mm is that in today’s market the ammunition is much less expensive than .40 S&W, and you need to practice as much as you can afford to. I have carried the G27 in a Fobus holster under an un-tucked shirt or a jacket, but find a G&G belt-slide holster to be more comfortable. I do recommend the use of a finger-grip mag extension for better recoil control. That brings up my only complaint about my G27. When changing magazines, the edge of my hand keeps the magazine from dropping free and I must use my off hand to pull the mag out before I can reload, but this would happen even without a grip extension. Seconds matter, so this is a serious issue in a gun fight. As to ammunition, I am only allowed to carry what is department-approved, and at this time that means 180gr Gold Dots. One last comment about the 9mm: My son purchased a Glock 19 gen 3 last year and I absolutely love the gun. I’m a big enough guy that concealment is not much more difficult than the 27. So, consider the G19 compact along with the ‘Baby’ Glocks when you make your selection. Thanks for avery well-done review, Pat. – C.C.