Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.<\/em><\/p>\n Tesla CEO Elon Musk has just issued a dire warning for Americans.<\/p>\n In a Feb. 5 appearance on the Dwarkesh Podcast<\/em>, Musk said America is barreling toward bankruptcy as its national debt continues to climb.<\/p>\n \u201cWe are 1,000% going to go bankrupt as a country and fail as a country, without AI and robots,\u201d he said (1). \u201cNothing else will solve the national debt.\u201d<\/p>\n According to the Treasury Department, U.S. national debt now stands at $38.56 trillion \u2014 and it continues to grow as federal spending outpaces revenue (2). So far in fiscal year 2026, the government has already spent about $602 billion more than it has collected (3).<\/p>\n Without a productivity breakthrough from artificial intelligence and robotics, Musk painted a bleak picture of what lies ahead, saying the country is \u201cactually totally screwed because the national debt is piling up like crazy.\u201d<\/p>\n He also warned that the cost of servicing that debt alone is becoming a heavy burden.<\/p>\n \u201cThe interest payments on national debt exceed the military budget, which is a trillion dollars. So we have over a trillion dollars just in interest payments,\u201d he said.<\/p>\n And those costs could rise further. A recent report from the Committee for a Responsible Federal Budget projects that interest payments on America\u2019s national debt will surpass $1.5 trillion in 2032 and reach $1.8 trillion by 2035 (4).<\/p>\n Musk isn\u2019t the only one sounding the alarm over America\u2019s debt and the soaring interest costs tied to it. Ray Dalio, founder of the world\u2019s largest hedge fund, Bridgewater Associates, has warned that the U.S. is heading toward a \u201cdebt death spiral,\u201d where the government must borrow simply to pay interest \u2014 a vicious cycle that feeds on itself.<\/p>\n But unlike Musk, Dalio doesn\u2019t foresee a formal bankruptcy.<\/p>\n \u201cThere won’t be a default \u2014 the central bank will come in and we’ll print the money and buy it,\u201d he said. \u201cAnd that’s where there’s the depreciation of money.\u201d<\/p>\n In other words, the government may never technically run out of dollars \u2014 but those dollars can lose value fast. Musk has warned in the past that if current trends continue, \u201cthe dollar\u2019s going to be worth nothing.\u201d<\/p>\n<\/p><\/div>\n That erosion in the value of the dollar is already visible. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 has the same purchasing power as just $12.06 did in 1970 (5).<\/p>\n The good news? Savvy investors have long found ways to protect their wealth \u2014 even when Washington\u2019s fiscal math stops adding up.<\/p>\n To shock-proof your investments, Dalio emphasized the value of diversification \u2014 and highlighted one time-tested asset in particular.<\/p>\n \u201cPeople don’t have, typically, an adequate amount of gold in their portfolio,\u201d he said. \u201cWhen bad times come, gold is a very effective diversifier.\u201d<\/p>\n Gold has long been considered a go-to safe haven. It can\u2019t be printed out of thin air like fiat money and because it\u2019s not tied to any single currency or economy, investors often flock to it during periods of economic turmoil or geopolitical uncertainty, driving up its value.<\/p>\n Despite a recent pullback, gold prices have climbed more than 70% over the past 12 months.<\/p>\n Other prominent voices see further potential. JPMorgan CEO Jamie Dimon recently said that in this environment, gold can \u201ceasily\u201d rise to $10,000 an ounce.<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.<\/p>\n When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.<\/p>\n Read More: Approaching retirement with no savings? Don\u2019t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)<\/strong><\/p>\n Gold isn\u2019t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.<\/p>\n When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.<\/p>\n Over the past ten years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by more than 87%, reflecting strong demand and limited housing supply (6).<\/p>\n Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn\u2019t exactly hands-off work \u2014 managing tenants, maintenance and repairs can quickly eat into your time (and returns).<\/p>\n The good news? You don\u2019t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.<\/p>\n The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you\u2019d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.<\/p>\n Mogul is another option. It\u2019s a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 a.m. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n You can sign up for an account and then browse available properties here.<\/p>\n Prominent investors like Dalio often stress the importance of diversification \u2014 and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress.<\/p>\n That message feels especially relevant today. Nearly 40% of the S&P 500\u2019s weight is concentrated in its ten largest stocks and the index\u2019s CAPE ratio hasn\u2019t been this high since the dot-com boom.<\/p>\n This is where, for many investors, alternative assets come into play. These can include everything from real estate and precious metals to private equity and collectibles.<\/p>\n But there\u2019s one store of value that routinely flies under the radar: It\u2019s scarce by design, coveted worldwide and frequently locked away by institutions.<\/p>\n We\u2019re talking about post-war and contemporary art \u2014 a category that has outpaced the S&P 500 with low correlation since 1995.<\/p>\n It\u2019s easy to see why art pieces often fetch new highs at auctions: The supply of the best works of art is limited and many of the most desirable pieces have already been snatched up by museums and collectors. That scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.<\/p>\n Until recently, purchasing art has been a domain reserved for the ultra-wealthy \u2014 like in 2022 when a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie\u2019s New York, making it the most valuable collection in auction history.<\/p>\n Now, Masterworks \u2014 a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy \u2014 can help you get started with this asset class. It\u2019s easy to use and, with 25 successful exits to date, Masterworks has distributed more than $65 million in total proceeds (including principal).<\/p>\n Simply browse their impressive portfolio of paintings and choose how many shares you\u2019d like to buy. Masterworks can handle all the details, making high-end art investments both accessible and effortless.<\/p>\n New offerings have sold out in minutes, but you can skip their waitlist here.<\/p>\n Note that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at masterworks.com\/cd.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our<\/em> editorial ethics and guidelines<\/em>.<\/em><\/p>\n Dwarkesh Patel and Stripe (1); Fiscal Data (2), (3); Committee for a Responsible Federal Budget (4); Federal Reserve Bank of Minneapolis (5); S&P Global (6)<\/p>\n