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Coming inflation

Mikel

Well-known member
Joined
May 20, 2020
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727
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With trillions of dollars being injected into the economy as if money is going out of style, I can't see how we won't have massive inflation.

So for those with a 401k, what can we do to keep it from becoming worthless? I'm tempted to cash out and buy some property.

Any ideas?
 
With trillions of dollars being injected into the economy as if money is going out of style, I can't see how we won't have massive inflation.

So for those with a 401k, what can we do to keep it from becoming worthless? I'm tempted to cash out and buy some property.

Any ideas?

If you're under 59 1/2 y/o you'll not only pay taxes on what you pull out you'll also get hit with a 10% penalty on top of that. You'll need to factor that into the bottom line.
 
Is the early withdrawal on the 401k penalty worth it?
 
I'm 39. I lost about 80k this year do to the rona. As of today I have made it all back and I don't plan to stop adding into my 401k. It's a Rollercoaster so there will be plenty of up and down swings. I figure I'm going to be working for another 20+ years so let her eat.
 
i lost a bunch a while back, so i have been buying real estate. that has saved my ass.

Until they jack the property taxes so high you can afford it and they repossess it? Hope that doesn't happen, but look at Nashville right now...
 
Gold, oil, property, hookers, and blow are all good hedges against inflation. It’s coming.
 
look at Nashville right now...

Fuck that town. 10 years ago it was the shit. It is now the posterchild of what Californians can do to a city.


OP: Here is what I notice. Real estate is pulling an absolute premium around here as compared to 5-7 years ago. Cars, boats, RVs, etc are all going for just about stupid money, partly because people aren't going to Disney world this summer. While the perceived increase (really, just shifted) in expendable income is a factor, I believe it is more of an indicator of how worthless the dollar is becoming. The inflation isn't coming, it is here.

Consider a 20 year old boat that has only depreciated 20% in today's market, they are all over the place and selling in hours. I only use that example because I happen to look at it often, but it's everywhere.
 
Precious metals for sure. Crypto if you can.
I'm stuck in my Roth 401k, not worth pulling out. I move it all into 50% foreign, 50% precious metals US stock.
Wife moved her IRA into 100% silver backed Roth a month ago, it's doing incredible. We invest in crypto quite a bit also, but that more for spending money when the dollar is gone and it goes digital currency which we will not be participating in.
 
Wait....i feel this way every time this comes up.....Doesn't the market inflate along with the dollar? Pretty sure that it does. If you're diversified, you might not make a bunch of $$ during inflation but you shouldn't lose much. For instance commodities should bounce up with the deflating dollar.

I would love to have someone teach me if I have the incorrect assumptions.:flipoff2:
 
Too bad Action Fap bailed on us. He could probably school us all with the podcasts he’s listened too.:flipoff2:
 
How does one buy precious metals via a 401k? I'm assuming these are promissory notes through a 3rd party that may go bankrupt in an economic collapse?
 
June 3, 2020



The CARES Act of 2020 provides significant relief for businesses and individuals affected by the COVID-19 pandemic. This includes allowing retirement investors affected by the coronavirus to gain access to up to $100,000 of their retirement savings without being subject to early withdrawal penalties and with an expanded window for paying the income tax they owe on the amounts they withdraw.
 
Inflation

Hyperinflation

deflation

biflation

stagflation



There's a lot of moving parts, right now it's a waiting game IMO

a few years ago, inflation was already high, I wrote myself a mental note "deflation happens first", so that I didn't push my cash into assets too early in a crash, that the bankers would inevitably print us out of.

hot money creates a boom, and malinvestment, once the prices are run up, and everybody (from home owners to mega corps) is carrying too much debt to make the payments, a small slowdown causes a cascade. Then the defaults, then the liquidation, this is where the deals are, then before things actually find their level, the bankers print money to bail out their cronys, scooping up assets to later rent and sell to us peasants. They've been doing it for hundreds of years, they don't send their children to the same schools we do.

this time around it's a wild card until the dust settles around the election.

The wild card is MMT, modern monetary theory, print more money forever. Trump has gone bankrupt before, but keeps building his empire, if he gets a 2nd term, I could see him juicing cash forever to keep the country running, being productive, low unemployment, meeting social security obligations with weak dollars, can buy favor with single payer healthcare, etc. I think this is all wrong, and immoral, and honestly, theft, but I can see him doing it. This would just be ramped up inflation.

Buy productive land, buy precious metals, acquire as much productive debt as you can and pay it back with watered down dollars

be in business for yourself so you can pass along increased costs

Hyperinflation, basically same as above, but collect the above more aggressively, and food, and productive land, and weapons, frankly

deflation, basically, market crashes, possibly due to Trump losing, or election contested, the egret increasing asset prices stop climbing, and things that are financed drop in value as banks tighten up lending, food, gas, shit you buy at the store might climb, but the expensive shit goes down, biflation

stagflation, this is a grind, basically, things stop moving, but prices get higher, you can't quit your shitty job, and every week your check buys less, Japan had "the lost decade"
buy a fucking funeral home


me? My silver about doubled in the last 60 days, I expect it to double again in the next year, drop a little while people take profits, then once people realise how under valued it is, $50 will be the new normal and it will climb with inflation from there

I'm waiting to see what happens with the election, do I buy some used equipment cash, or do I buy as much productive stuff on credit as I can, and use my savings to service the debt while things are rough

And food. I bought a shit load of canned food, a calorie is the most basic store of value, 5 months ago you couldn't find eggs or milk and there was a limit on meat, in case y'all forgot. There's a slim chance that food goes parabolic this fall, if not, next summer I'll throw a block party:laughing:
 
I'll add a little more before crashing out

I'm 2009 I took the position that savers are suckers.

I want to semi retire on a little hobby farm with a shop, wear overalls to farm auctions and buy shit to tinker with and meet my friends for breakfast.

I can work my ass off and save, and hope that my savings, stocks, outrun inflation. Now the guys who made money in the stock market in the 10 year bull run won't listen, but stocks some times go down, and sometimes take decades to recover, 1929 to 1954 I think, so, sometimes stocks go down, and stay down
Then, at or near retirement, I pay taxes and use my savings and investments to buy the things i want at inflated prices.

But before that happens, there's hardships and job losses, savings gets tapped. I get old, tired, and broken down.

Fuck that.

When my industry came roaring back in spring 2009 I bought every piece of equipment I could get my hands on, used, at fire sale prices, tractor, forklift, gooseneck trailer I didn't have a truck for yet, tire machine, balancer, welders beyond my capabilities, 2 post lift, etc etc

If I ever wound up without work, I'd make my own job instead of watching my savings deplete. I don't break my back, I use my forklift, tractor, winch, crane to do the work for me. Already bought a piece of dirt. I need to buy another piece of dirt for summer months.

When I retire, I don't have to buy quality equipment at 2050 prices, I started accumulating it in 2009.

Inflation is theft, you'll get your social security as promised, but it'll buy you a can of cat food and a candle to eat it by. Your future has already been stolen from you.
 
Yes books

My grandfathers taught me all kinds of “real world” things. Many skills are passed on from one generation to another, many aren’t even considered in school

In a SHTF world... Knowledge will be very valuable


I absolutely agree with you, but books truly are a thing of the past, it seems likd
 
I bought a little silver at this exact time last year it’s done well but it’s not nearly enough to save my ass if my cash I have saved up from years of working my ass off turns into worthless paper. I don’t have any stocks or anything like that other than my kids 529’s that we set up and continue to deposit into. Those have done very well. Nearly all of my money is in real estate equity roughly 600k. I purchased the property as a foreclosure and it was the best decision I have made. We want to buy another home and make the current one and AirBnb because that’s what nearly everyone one of my neighbors homes has become and they make a lot of $$. But home prices are crazy right now where I live and I feel like it’s not wise to purchase at this time. Thoughts. ???
 
I think this economy has a boat load of growth and will be be able to cover the huge debt of the "Rona" thingy. That is if this Rona BS ends right now and is not dragged out any longer! Fucking people have to get real; Rona will get you face mask or not.
Right now; I might stay in equities or maybe some major real estate. If your into metals; your just marking time baby. :smokin:
 
Maybe all the money dumped into the economy leveled things out to where things should be. I haven't noticed prices increasing on much.
 
Maybe all the money dumped into the economy leveled things out to where things should be. I haven't noticed prices increasing on much.

That's because your prices out west are already higher than giraffe pussy.

Everywhere else is over values, used cars went stupid for example.

There was a good article siting walmart as an economic marker. They saw a rise with the handouts, and now a decrease the past month. I'm a firm believer it's a house of cards, I just cant predict the crash.
 
From projectjunkie

Buy productive land, buy precious metals, acquire as much productive debt as you can and pay it back with watered down dollars

be in business for yourself so you can pass along increased costs


This is the secret to beating inflation. During periods of high inflation the borrowers win, the lenders and savers lose. You borrow money on land, equipment that makes you money ect. You get to repay it with a dollar that’s worth less and is easier to make :smokin:

I’m got a offer to purchase on a 160acre farm that happens to be a solid rock :flipoff2:. As soon as the deal gets inked gonna apply for a mining permit!
 
That's because your prices out west are already higher than giraffe pussy.

Everywhere else is over values, used cars went stupid for example.

There was a good article siting walmart as an economic marker. They saw a rise with the handouts, and now a decrease the past month. I'm a firm believer it's a house of cards, I just cant predict the crash.

This. California monopoly money already built a house of cards out there. Now thanks to the feds everywhere else is fucked too. Nobody knows when it's gonna pop but you can't just inject money and expect it to wok out if there isn't productivity happening. Certain large sectors of the economy are way down. The money that's floating around in the air is gonna settle out and then that reality is gonna sink in. I don't know what will happen but it won't be good.

I'm in a good place to weather a financial storm right now and nothing would please me more than seeing the hordes of assholes in places like SF, Boston, and all the other super inflated markets lose their shirts but I know that anything that brings that fucks them over is gonna fuck over all the honest people they pay to do bullshit work.
 
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I'll add a little more before crashing out

I'm 2009 I took the position that savers are suckers.

I want to semi retire on a little hobby farm with a shop, wear overalls to farm auctions and buy shit to tinker with and meet my friends for breakfast.

I can work my ass off and save, and hope that my savings, stocks, outrun inflation. Now the guys who made money in the stock market in the 10 year bull run won't listen, but stocks some times go down, and sometimes take decades to recover, 1929 to 1954 I think, so, sometimes stocks go down, and stay down
Then, at or near retirement, I pay taxes and use my savings and investments to buy the things i want at inflated prices.

But before that happens, there's hardships and job losses, savings gets tapped. I get old, tired, and broken down.

Fuck that.

When my industry came roaring back in spring 2009 I bought every piece of equipment I could get my hands on, used, at fire sale prices, tractor, forklift, gooseneck trailer I didn't have a truck for yet, tire machine, balancer, welders beyond my capabilities, 2 post lift, etc etc

If I ever wound up without work, I'd make my own job instead of watching my savings deplete. I don't break my back, I use my forklift, tractor, winch, crane to do the work for me. Already bought a piece of dirt. I need to buy another piece of dirt for summer months.

When I retire, I don't have to buy quality equipment at 2050 prices, I started accumulating it in 2009.

Inflation is theft, you'll get your social security as promised, but it'll buy you a can of cat food and a candle to eat it by. Your future has already been stolen from you.

This is my plan as well. Steel and dirt. The only problem with my plan is I need to relocate to a place with low property tax to make it work. We are looking for an early retirement property/getaway place now that will be our home when we leave N.Y. I have no debt, except for that ever increasing property tax.
 
Put 15% of my check in a 401k for 35 years, $200 a week in a savings account, worked every minute of overtime I could get. paid off my real estate, retired at 59 with a pension. Nice raise next year when I hit SS.

The market always goes up.

Cash is king.

Off to Yellowstone:smokin:
 
Yes books

My grandfathers taught me all kinds of “real world” things. Many skills are passed on from one generation to another, many aren’t even considered in school

In a SHTF world... Knowledge will be very valuable

It is amazing how many people never consider that simple fact.
 
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