Monday, November 4, 2013

I've been saying it for a while

But Peter's article really shows the facts.

Sometimes I wonder if I should  cash out my IRA (or a portion of it) and pay off the house....which is really the only thing appreciating in value in my current portfolio. 

Stocks and bonds are flat, or at best barely keeping up with inflation.

Ditto my IRA money. Not making huge gains so compounding of small interest isn't resulting in real gains....

Ditto savings.

I think that my guns and ammo will be worth more very soon, but I'll likely not be willing to sell at any price......

Same with prepped foods and other supplies for when things get pear shaped....

Alternatively, Maybe I should go as deep in debt as my cash flow allows....and pay off today's dollar amount loans in a few years with dollars that are worth significantly less... 

Thoughts?


5 comments:

Divemedic said...

The banks aren't stupid. They are keeping credit card interest rates high enough that going into debt to buy tangible goods with them isn't profitable.
The only way to get that sort of cash at decent rates is to get loans against tangible assets that they can take. (See the 2008 crash and mortgage scandals for details)
Paying off the house won't help, either. You still won't own it. Local governments, homeowners' associations, and the like can take it from you whenever they please.

Karl said...

All big decisions that could backfire, but you're noticing a growing trend here.

Maybe someone from Cyprus will leave a comment here??

One suggestion that is getting traction is to move your $$ as far away from the easy grasp of our benevolent betters in government. Bank accounts are electronic and therefore easier to grab than the equity in your home. Mr. B's Home equity is easier to grab than Mr. B's 1911, etc.

3boxesofbs said...

Run up your debt and IF the government re-values the money -- say knocks it down 3 to 1 or 10 to 1 -- your debts will not be affected. Just how much cash you have.

I wouldn't recommend it.

I am putting more money into tangible goods; household items like food, soap, detergents. Also tools; mostly hand tools, that can be later traded or used without power.

Would also recommend equipment to generate your own power; solar, wind, etc. Or cook with again, solar ovens, dutch ovens or cast iron pots and pans. Durable goods that will have value long after the dollar has gone up or down.

Old NFO said...

Tangible goods... That's MY take on it.

HerrBGone said...

Tangible goods and income producing real estate. Use the 'today's $ debt' to buy the later.