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To: betty boop

Pay off all debts, such as your home mortgage and credit card debt. This has a guaranteed rate of return equal to the interest rate you were paying.
You could diversify by buying nearby real estate to rent out. Real estate prices I expect will plunge in January when the Medicare surtax and higher income taxes kick in.
Stocking up has some value. A cache of canned meat, bottled water and valuable trade goods that you too will consume is invaluable, since it is both a form of savings and protection against disaster.
I know people investing in lead (bullets / guns), but I don’t know if that is a bubble about to burst.


16 posted on 12/02/2012 4:53:18 PM PST by tbw2
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To: tbw2
Pay off all debts, such as your home mortgage and credit card debt. This has a guaranteed rate of return equal to the interest rate you were paying.

Paying off debt when great inflation is coming is a foolish thing. Wait until you can pay back $1 of debt with a dollar that is only worth $0.25. Pay off all debts, such as your home mortgage and credit card debt. This has a guaranteed rate of return equal to the interest rate you were paying.

I think owning rental property is a good move. Inflation is your friend when you are renting living space. And, you get to pay back the mortgage with inflated dollars again.

I, personally, have benefitted greatly from inflation, both as a homeowner and as owner of rental properties.

Some stocks do well in inflationary times, some not so much. About all one can say for sure is that stocks beat money in a bank account over the long term.

23 posted on 12/02/2012 6:09:57 PM PST by CurlyDave
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To: tbw2

Have you considered that the interest rate you’re paying will shortly be less than the rate of inflation?


37 posted on 12/03/2012 11:25:59 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: tbw2

Not if it starts getting used.


48 posted on 12/05/2012 9:32:01 PM PST by US_MilitaryRules (Unnngh! To many PDS people!)
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