What's new
By:
Filters

Coming inflation

crisbee1 said:
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.
Click to expand...

That depends on your 401k I think. On mine, I can take out a Cares Act $100k loan, but obviously it has to be paid back within 5 years. If I take a Cares Act withdrawal, the 10% IRS fee is still there, at least on the webpage. We have no paperwork loans so you could basically just lie on the application and say you were affected by COVID even if you weren't to get the loot.

Our 401k's interest rate is currently the same as the Credit Unions on a Home Equity Loan. You just pay yourself the interest on the 401k. Theoretically, if you're making less than the interest rate on the 401k loan, and you think you'll continue to do that, a 401k loan can make some sense because you're paying yourself back at a higher interest than the damn thing is making.

Of course if your 401k is only making 3.75%, you're doing it wrong.
 
Rerock said:
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...
Click to expand...

the 10 acres by the house is 20 bucks a year in ag exemption. the other 10 acres i am about to buy should be the same. the 40 acres in Colorado is 300, it used to be under 10 and would be if i ag exempted it. the 2 houses in my neighbor hood have went up pretty good over the years. but you cant beat them all. the 2 acre with water/power/septic i have a few miles away is only 300 a year. my brothers lives on it in a rv.
 
gunracer1 said:
the 10 acres by the house is 20 bucks a year in ag exemption. the other 10 acres i am about to buy should be the same. the 40 acres in Colorado is 300, it used to be under 10 and would be if i ag exempted it. the 2 houses in my neighbor hood have went up pretty good over the years. but you cant beat them all. the 2 acre with water/power/septic i have a few miles away is only 300 a year. my brothers lives on it in a rv.
Click to expand...

today...

But today's tax rate (or Ag exemption) is not a guarantee of tomorrow's tax rate...
 
ThePanzerFuhrer said:
From projectjunkie


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!
Click to expand...

Only a miner would be excited about buying a rock farm. :flipoff2:

I'm hedging bets paying down equipment and trucks, while dragging my feet to replace what is aging out or outgrown by the company. I figure worst case I'm back to a skeleton crew or solo with owned equipment long enough to weather the storm. Investments are where I'm uncertain. The Roth will stay as-is, maxing out contributions, but I may need to look at reallocating the brokerage account. Unfortunately I've put too much time into playing in the dirt and not enough learning how investments work.

FWIW, the GF has kids graduating high school in '21 and '22 and has moved their 529's into cash positions until after the election. She does client relations and is an advisor in training under a couple of guys managing >$150 mil and is probably acting on sound advice.
 
Mikel said:
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?
Click to expand...

if you want to 'cash out' into property, i vaguely remember reading about a self directed IRA and use it to buy property.
 
crisbee1 said:
Thanks for the drive by. Care to elaborate?
Click to expand...

Projectjunkie said:
learn us
Click to expand...

I am not looking to start a big debate about finances, but cashing out assets (especially ones with penalties involved for most people like 401Ks) is the worst thing you could do if you are expecting severe inflation. You want your money/assets to grow with the inflation, which cash doesn't.
 
'84 Bronco II said:
I am not looking to start a big debate about finances, but cashing out assets (especially ones with penalties involved for most people like 401Ks) is the worst thing you could do if you are expecting severe inflation. You want your money/assets to grow with the inflation, which cash doesn't.
Click to expand...

If we get inflation, clean, steady inflation from here, you're probably right, especially if it's leveraged into resources, gas oil food, utilities, mining, industrial commodities, and precious metal mining, but if we get stagflation, creeping prices with no growth, how are auto stocks, entertainment, leisure, travel, etc going to hold up?

How about a crash first? Some people remember some red days just 3 months ago.

There is a lot of potential for a stock market crash, it may, it may not, but lots of big money has taken a cash position, foolish not at least acknowledge it. Sometimes stocks go down.
 
'84 Bronco II said:
Lot's of really bad advice in here :laughing:
Click to expand...

I always love gold advice.

Lets see , it's a metal that has been made illegal to own in the past (so there is precedence to make it illegal again) and has only become legal to own since 1975 and invest in that as your savior for the defunded dollar.

Let's ignore that you have to convert it to cash to truly buy anything on a small scale. If you have an ounce of gold and I have a loaf of bread, we really can't do reasonable business. I'm not taking your gold shavings for my bread, even if you could prove to me it is not gold colored Pb. and lets forget you are tying the value to a currency, and when you do, there is market manipulation. And lets ignore the fact, like any other currency it is only worth something because you believe it. You have a $2,000 coin that you can't buy anything with .

(Yeah, I know sometimes you can find a seller that'll take it in trade for the tractor you want, but that is the exception that makes the rule)
.

Sure, have some in your portfolio, but it's more like a stock, that you actually hold, which is cool, until somebody finds out you have it, then you gotta spend all your energy defending it, and protecting it from fire, or in an effort to keep it safe you put it some place so safe, even you can't find it.
 
grumpy356 said:
I always love gold advice.

Lets see , it's a metal that has been made illegal to own in the past (so there is precedence to make it illegal again) and has only become legal to own since 1975 and invest in that as your savior for the defunded dollar.

Let's ignore that you have to convert it to cash to truly buy anything on a small scale. If you have an ounce of gold and I have a loaf of bread, we really can't do reasonable business. I'm not taking your gold shavings for my bread, even if you could prove to me it is not gold colored Pb. and lets forget you are tying the value to a currency, and when you do, there is market manipulation. And lets ignore the fact, like any other currency it is only worth something because you believe it. You have a $2,000 coin that you can't buy anything with .

(Yeah, I know sometimes you can find a seller that'll take it in trade for the tractor you want, but that is the exception that makes the rule)
.

Sure, have some in your portfolio, but it's more like a stock, that you actually hold, which is cool, until somebody finds out you have it, then you gotta spend all your energy defending it, and protecting it from fire, or in an effort to keep it safe you put it some place so safe, even you can't find it.
Click to expand...

Well, that's one way to look at it.

personally, I'm in silver, it's undervalued compared to gold, there's a ratio going back thousands of years, it's way out of wack currently

I do not want to use precious metals to pay for day to day expenses, but I would in an emergency. IMO metals are for larger purchases.

I've sold silver on a Friday and bought a diesel truck on Saturday because I needed another, I used a 100oz silver bar as partial payment for a piece of land.

YMMV
 
You can move money within your retirement account...including into cash if you're so inclined. Don't 'cash out' as that's stupid with all the fees and penalties.

Dig a little deeper into the funds you own and see how much of the fund is in cash. Right now I have one that's 6%. I'm not sure if that's high or low but I've heard the percentage goes up when they get scared.
 
My favorite thing to buy is land/real estate. I told the wife when we bought our current home that it will be worth at least triple what we paid when we retire. The current trends in insanity say I'm right, and the more secluded, the more valuable.

The nice thing about land here is that it increases and decreases as the promise of oil comes and goes. If you buy when everyone has lost hope in the oil companies, you can make good money on it.
 
FleshEater said:
My favorite thing to buy is land/real estate. I told the wife when we bought our current home that it will be worth at least triple what we paid when we retire. The current trends in insanity say I'm right, and the more secluded, the more valuable.

The nice thing about land here is that it increases and decreases as the promise of oil comes and goes. If you buy when everyone has lost hope in the oil companies, you can make good money on it.
Click to expand...

So what happens if interest rates are high when you want to cash out? Ain't nobody gonna pay stupid money for your dump when they can't afford the loan.
 
ThePanzerFuhrer said:
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!
Click to expand...

Most people can't afford 'productive land'. You do the bottom end of mining, no offense I love your thread and I respect what you do, I'm just pointing out that even you are barely in the game. Carlin was right: the Owners already own all the best land.

And if shit goes economically south, a farm is not going to be fun. Farmers are wealthy and that wealth relies on farm subsidies and set-asides, so that we don't have a new Great Depression. If those subsidies run out, now you do have a farm, but you are stuck nearly subsistence farming and being at LIttle House on the Prairie levels of wealth. And farm values rely on America's second-to-none distribution system of barges and ships on the rivers and Great Lakes. So if shit goes really south, now you are stuck with big piles of wheat in a region where everyone has big piles of wheat. The stuff isn't worth anything to anyone if you can't move it, usually over water and just stretches of rail.

It's like Gold and Silver. Yes, it's a market, and people should diversify, but people above are saying like "there's an ancient relationship that goes back thousands of years, proving silver is undervalued". That's a perfect description of the Gambler's Fallacy: just because something was before, doesn't mean it will be again.

Gold and silver have good industrial uses, silver more than gold actually, but the entire idea that they are some objective measure of value is false. As an industrial commodity, neither gold nor silver supports their price.
 
grumpy356 said:
I always love gold advice.

Lets see , it's a metal that has been made illegal to own in the past (so there is precedence to make it illegal again) and has only become legal to own since 1975 and invest in that as your savior for the defunded dollar.

Let's ignore that you have to convert it to cash to truly buy anything on a small scale. If you have an ounce of gold and I have a loaf of bread, we really can't do reasonable business. I'm not taking your gold shavings for my bread, even if you could prove to me it is not gold colored Pb. and lets forget you are tying the value to a currency, and when you do, there is market manipulation. And lets ignore the fact, like any other currency it is only worth something because you believe it. You have a $2,000 coin that you can't buy anything with .

(Yeah, I know sometimes you can find a seller that'll take it in trade for the tractor you want, but that is the exception that makes the rule)
.

Sure, have some in your portfolio, but it's more like a stock, that you actually hold, which is cool, until somebody finds out you have it, then you gotta spend all your energy defending it, and protecting it from fire, or in an effort to keep it safe you put it some place so safe, even you can't find it.
Click to expand...

Exactly.

Gold and silver do not have a very high intrinsic value, and the value is tied almost universally to a high tech civilization that has need of Silver in the Pharma and Chemical industries, and Gold and Silver for electronics.

If shit goes south, nobody wants a brick of soft yellow metal. If there's a metal, I'd rather have copper and tin, or iron. Far more useful.

If precious metals are part of a portfolio, I have nothing to say about it. I am not a financial advisor. But people saying they want gold when shtf haven't really thought it out. I want your bread, ammunition, guns, petroleum products, knife, canvas, or other useful items. Not a heavy bar to lug around that doesn't do anything and won't even make a decent tool of any type.
 
evernoob said:
Most people can't afford 'productive land'. You do the bottom end of mining, no offense I love your thread and I respect what you do, I'm just pointing out that even you are barely in the game. Carlin was right: the Owners already own all the best land.

And if shit goes economically south, a farm is not going to be fun. Farmers are wealthy and that wealth relies on farm subsidies and set-asides, so that we don't have a new Great Depression. If those subsidies run out, now you do have a farm, but you are stuck nearly subsistence farming and being at LIttle House on the Prairie levels of wealth. And farm values rely on America's second-to-none distribution system of barges and ships on the rivers and Great Lakes. So if shit goes really south, now you are stuck with big piles of wheat in a region where everyone has big piles of wheat. The stuff isn't worth anything to anyone if you can't move it, usually over water and just stretches of rail.

It's like Gold and Silver. Yes, it's a market, and people should diversify, but people above are saying like "there's an ancient relationship that goes back thousands of years, proving silver is undervalued". That's a perfect description of the Gambler's Fallacy: just because something was before, doesn't mean it will be again.

Gold and silver have good industrial uses, silver more than gold actually, but the entire idea that they are some objective measure of value is false. As an industrial commodity, neither gold nor silver supports their price.
Click to expand...

You miss understood me I bought a farm to mine not farm. Fuck farming. The property has 20+ million in stone on the bitch. I’ll rent the fields out for hay rent the house and shops and harvest the timber off to make it pay till i get a permit. Once I get a permit the property will be worth a lot more than I paid for it.

lol I do well for my self. I have a job that’s always In Need, cannot be outsourced, extremely high entry cost and is too tough for most of today’s weaklings. Everyone around here talks about retiring, me the only time I have to go to work is when I sit down for a few hours to send out bills.

FYI I do mine gold and silver out of my sand and gravel properties. Im currently building some test machinery to improve my recovery rates. :flipoff2:

Here’s a small test pan out of the sluice box.

62C20B3F-476A-4E75-B2AE-A6C27D9503E7.jpeg
 
Last edited:
arse_sidewards said:
So what happens if interest rates are high when you want to cash out? Ain't nobody gonna pay stupid money for your dump when they can't afford the loan.
Click to expand...

Yeah, right, just like no one thought people would pay stupid money for GMT 800's, OSB Fords, etcetera...always someone willing to buy.
 
ThePanzerFuhrer said:
You miss understood me I bought a farm to mine not farm. Fuck farming. The property has 20+ million in stone on the bitch. I’ll rent the fields out for hay rent the house and shops and harvest the timber off to make it pay till i get a permit. Once I get a permit the property will be worth a lot more than I paid for it.

lol I do well for my self. I have a job that’s always In Need, cannot be outsourced, extremely high entry cost and is too tough for most of today’s weaklings. Everyone around here talks about retiring, me the only time I have to go to work is when I sit down for a few hours to send out bills.

FYI I do mine gold and silver out of my sand and gravel properties. Im currently building some test machinery to improve my recovery rates. :flipoff2:

Here’s a small test pan out of the sluice box.

Click to expand...

Fair enough I'm just saying farming is also a productive land and farming may not be the best thing.

If things go tits up, people are going to use less gravel. Not necessarily, maybe if the economy stutters along, people will use more. There were industries that did well in the Depression for that reason: as a substitute for more expensive alternatives. You wouldn't think of it before the Depression, but people who could print patterns on flour burlap sacks made a killing, as the flour companies competed for business by selling flour in sacks you could make into children's clothes.

So maybe certain kinds of gravel for roads will be in more demand, but other kinds of gravel for construction will be in low demand when construction ends. If you don't worry about that kind of gravel, you still have to if your competitors switch to your segment to make money. Again, I agree with you but I don't believe your business is 'recession-proof' as it were.
 
There are certain things that do well in a recession, and luxury food items are one of them. If people can't buy a $1,000 TV, they'll spend $20 for little dried figs or $9 on a can of gourmet tinned fish.
 
I'm gonna pay stuff of with Euros.

If you have the chance to sit it out, don't sell anything at all. It always comes back up, right?
 
evernoob said:
Fair enough I'm just saying farming is also a productive land and farming may not be the best thing.

If things go tits up, people are going to use less gravel. Not necessarily, maybe if the economy stutters along, people will use more. There were industries that did well in the Depression for that reason: as a substitute for more expensive alternatives. You wouldn't think of it before the Depression, but people who could print patterns on flour burlap sacks made a killing, as the flour companies competed for business by selling flour in sacks you could make into children's clothes.

So maybe certain kinds of gravel for roads will be in more demand, but other kinds of gravel for construction will be in low demand when construction ends. If you don't worry about that kind of gravel, you still have to if your competitors switch to your segment to make money. Again, I agree with you but I don't believe your business is 'recession-proof' as it were.
Click to expand...

I’ve been through the 07-09 recession I know what’s it’s like. One thing you forget now a days when we get to that point the easiest thing for the .gov to do is build more roads. That is money that goes directly to businesses like mine. I don’t have to wait for it to trickle down through the economy.

To circle back around to the oringinal question of how to protect your cash against inflation. Assets that are in demand and that will be in demand forever are the best bets. In my personal situation that is mineable ground. Maybe for you that’s commercial property, rental homes, gold silver, guns ammo, fuck for today’s idiots old school flat bills might be a gold mine in the future lol. Physical assets are the key. Do I say to cash out your 401k fuck no but to take your spending cash go on one less vacation a year and buy so thing that will make money in the future fuck yeah.

Caution a Real world example:

2009 me and my dad went to a auction and ended up buying a used 120’ Putzmiester Telebelt truck for 120,000. On our way home we were nervous are fuck because we just spent a ton of cash during a recession, didn’t know if we made the right call ect.

Fast forward to today the damn thing is still worth 120,000 and hardly has time to cool off over night. That thing was one of the best purchases we ever made and now say we should have bought both of them that was up at that sale. The fucker prolly made us $500,000 or more. This is how you protect your cash.
 
Last edited:
evernoob said:
Fair enough I'm just saying farming is also a productive land and farming may not be the best thing.

If things go tits up, people are going to use less gravel. Not necessarily, maybe if the economy stutters along, people will use more. There were industries that did well in the Depression for that reason: as a substitute for more expensive alternatives. You wouldn't think of it before the Depression, but people who could print patterns on flour burlap sacks made a killing, as the flour companies competed for business by selling flour in sacks you could make into children's clothes.

So maybe certain kinds of gravel for roads will be in more demand, but other kinds of gravel for construction will be in low demand when construction ends. If you don't worry about that kind of gravel, you still have to if your competitors switch to your segment to make money. Again, I agree with you but I don't believe your business is 'recession-proof' as it were.
Click to expand...

Although all your points in this thread are valid you sound like someone who doesn't know the security you feel when owning land. No one here said land was the end all thing you should purchase but included it in a list of things that work togeather and are achievable for most people that are willing to work for it.
Maybe I missed it but what is your list?
 
2big bronco said:
Although all your points in this thread are valid you sound like someone who doesn't know the security you feel when owning land. No one here said land was the end all thing you should purchase but included it in a list of things that work togeather and are achievable for most people that are willing to work for it.
Maybe I missed it but what is your list?
Click to expand...



You rent land. You never own land. Only indian tribes and governments own land. You rent land from them. If you do not pay your rent, they will take it away from you. If you try to stop them, they will put you in a cage or kill you.

Tell me all about your security when a County Clerk can lose your paperwork and you get evicted before finally begging the government to give you your rented space back.
 
2big bronco said:
Although all your points in this thread are valid you sound like someone who doesn't know the security you feel when owning land. No one here said land was the end all thing you should purchase but included it in a list of things that work togeather and are achievable for most people that are willing to work for it.
Maybe I missed it but what is your list?
Click to expand...

The only people the Government has ever allowed to own land in this country are Railroads, Mines, and a few other very large organizations. The government allowed Mines to buy people's mineral rights out from under them without their knowledge or consent, then empowered those Mines to enslave the people living on that land. When the people complained and got uppity, the Government sent in federal troops to shut them up.

The Government also allows screechy liberal city-dwellers to tell you what to do on 'your' land. That's everything from cutting down trees to what use you can make of it. If you don't stay hidden, a pesky government worker will come and get access to your land with or without your consent, to see what you're up to. If you're doing something the screechy city woman doesn't like, they'll make you stop.

If you grow fibrous hemp without getting a special government permit, the government will come and take 'your' land away (repossess it actually) without a trial.

Nope, neither you nor anyone else here actually owns or will ever 'own' land in this country.

Now WalMart, THEY own land. They occupy lots of land that they don't have to pay the government for, in fact governments give companies like WalMart free land all the time, then let WalMart 'sell' that land to other people who will then rent it from the government. But WalMart doesn't pay the government for their land, they get it for free.

In my State, a giant Nestle company gets not only free land that they don't rent from the government, but they can take as much water as they want out of the ground while everyone's well run dirty.

But not private people. Nope. Nooooooo way.
 
You must log in or register to reply here.
Top Back Refresh