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Started By
Message
1
Posted on 4/9/13 at 10:22 am to uway
quote:
Paranoia.
Nowhere near retirement, will face (I assume) 10% penalty plus taxes
Jesus
Posted on 4/9/13 at 10:29 am to Pierre
If you think everything is gonna go to hell in a handbasket, who do you think is gonna repo your car?
What good does cash do you if you think it will hyper-inflate and be worthless?
Calm. Down.
What good does cash do you if you think it will hyper-inflate and be worthless?
Calm. Down.
Posted on 4/9/13 at 10:33 am to Vols&Shaft83
quote:
Posted by Vols&Shaft83 quote: uway Can I buy some pot from you?
Seems like you need some if the effects are as I've heard them to be. Never partook, myself.
Good point, Barry.
I would use the increased cash flow from paying off the car to improve my position for buying land (on which to build the compound).
Posted on 4/9/13 at 10:38 am to uway
I suggest cashing it out and putting it all in bit coins and dinars.
I have also heard our president is a Muslim, which is why he's hell bent on destroying our country. That's why dinars are such a good investment. Any Muslim currency is a good investment, but Iraqi dinars are the real sweet spot.
I have also heard our president is a Muslim, which is why he's hell bent on destroying our country. That's why dinars are such a good investment. Any Muslim currency is a good investment, but Iraqi dinars are the real sweet spot.
Posted on 4/9/13 at 10:42 am to uway
quote:
uway
Please call Street Talk Advisors and they will tell you what to do with your money.
If ever there was an investment advisor that was a perma-bear, it is these guys. God damn, even their facebook news feed is depressing to read. Looks like you two will enjoy each other's company.
Posted on 4/9/13 at 10:42 am to uway
quote:
But I don't follow the stock market at all. Is this an especially bad time to withdraw, i.e. does everyone and their momma know that the market should keep going up for at least the next month or so?
If you can reallocate the assets, why not shift into bonds, or a fixed income fund for the time being - if things calm down, or even if there is a 15 or 20% correction, you can buy back in at the bottom.
If you're not close to retirement, don't worry about it - you're going to have to deal with bulls and bears several times. Just cut the risk as you get towards the last 5 years or so prior to retirement.
This post was edited on 4/9/13 at 10:43 am
Posted on 4/9/13 at 10:50 am to uway
quote:
I halfway believe the government is going to raid these accounts in the next decade or so anyway
Ah. Tinfoil hatter. Gotcha.
Posted on 4/9/13 at 11:22 am to TheHiddenFlask
quote:
I suggest cashing it out and putting it all in bit coins and dinars.
I have also heard our president is a Muslim, which is why he's hell bent on destroying our country. That's why dinars are such a good investment. Any Muslim currency is a good investment, but Iraqi dinars are the real sweet spot.
I'm more disappointed that I didn't think to do this.
Posted on 4/9/13 at 11:40 am to barry
quote:
What good does cash do you if you think it will hyper-inflate and be worthless?
This. If the shite really hits the fan our money likely wont be worth a thing anyway, so you might as well leave it alone in the hopes that nothing catastrophic happens.
Posted on 4/9/13 at 1:12 pm to ZereauxSum
quote:
Why don't you just put it in fixed income?
just change your investment allocation dude, don't withdraw it!
Posted on 4/9/13 at 1:38 pm to Zilla
The irony of him paying down debt due to his fears of hyperinflation is that it is the absolute opposite of what you would want to do in that situation.
Being a net debtor is optimal in hyper inflation.
I love it when jackasses can't even get the basics down, but try to explain why they understand the economy better than ray dalio, warren buffet, etc.
Being a net debtor is optimal in hyper inflation.
I love it when jackasses can't even get the basics down, but try to explain why they understand the economy better than ray dalio, warren buffet, etc.
Posted on 4/9/13 at 1:42 pm to TheHiddenFlask
quote:
net debtor
Posted on 4/9/13 at 1:47 pm to uway
quote:
So "one in the hand worth two in the bush" doesn't apply AT ALL? Y'all are that confident that we are not headed for collapse?
If you really think we are headed for collapse you should borrow as much money as possible right now. Use the money to build that compound and stock it. The last thing you should be doing is paying down debt.
Posted on 4/9/13 at 1:59 pm to TheHiddenFlask
quote:
The irony of him paying down debt due to his fears of hyperinflation is that it is the absolute opposite of what you would want to do in that situation.
Depends on the debt and timing. It would be great to be in debt for the house you wanted to live in forever on a great piece of land when hyperinflation hit.
It would be not great at all if your other debts (on relatively short-lived assets) prevented you from getting into that house/land in time. Especially if the money to pay off those debts was sitting in an account that is of no use to you for the next 30 years.
It's all fine to say that it doesn't make sense to pay off 6% debt by taking a 35% hit on your "retirement" money, but in the real-world, pre-collapse, money lenders still care about things like your debt/income ratio.
And, depending on what you believe about the future, $0.65 in your hand today may be a lot more valuable to you than $1.00 on a computer screen, regardless of whether that $1.00 might turn into $1.50 at some point.
quote:
Being a net debtor is optimal in hyper inflation.
Thanks for the amazing insight.
quote:
I love it when jackasses can't even get the basics down, but try to explain why they understand the economy better than ray dalio, warren buffet, etc.
Normalcy bias could kill you.
Posted on 4/9/13 at 2:10 pm to uway
quote:
Depends
No. It doesn't.
Your example just said that debt can hurt you in that scenario if it means taking in less debt.
Good job using a random investment term. Here's a good one for you: confirmation bias. It IS killing you.
Posted on 4/9/13 at 3:03 pm to uway
quote:
It would be not great at all if your other debts (on relatively short-lived assets) prevented you from getting into that house/land in time. Especially if the money to pay off those debts was sitting in an account that is of no use to you for the next 30 years.
Okay, then borrow against the 401(k). That is still not a good thing to do since you're borrowing untaxed money and repaying in after-tax dollars. But it is still better than taking a hit from withdrawal penalties.
ETA: Or you could just sell the assets on which you owe money. You will probably take a haircut there too but it still probably isn't as bad. If it is then the loan isn't really your problem anyway.
This post was edited on 4/9/13 at 3:07 pm
Posted on 4/9/13 at 3:54 pm to Vols&Shaft83
quote:
WHAT THE frick? Calm your nerves, you're about to lose at least 25% of your money and probably more because of irrational paranoia
Much, much more than 25%. It could bump him up to a higher tax bracket. And that 10% penalty....that is taxable income too (why, I have no idea).
Posted on 4/9/13 at 9:27 pm to Vols&Shaft83
quote:
WHAT THE frick? Calm your nerves, you're about to lose at least 25% of your money and probably more because of irrational paranoia. I honestly can't think of a dumber financial decision you could make.
Posted on 4/9/13 at 9:51 pm to Fat Bastard
Correct me if I'm wrong, but technically, isn't he losing only 10% of his money due to the early withdrawal penalty. The money he's taking out right now is still going to be taxed when he withdraws during retirement (could be more/could be less depending on future tax rates). Of course, he'll lose out on possible returns, but technically he'll only lose 10% via extra taxes.
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