Then 401ks get rolled into it. And then the levels of required investment keep increading, until finally Atlas shrugs. But it keeps the game going for a little longer.
Get your money out of the Matrix.
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Vince, let’s say, hypothetically, that a guy has $500,000 in a 401K.
If he takes it all out, where does he put it to be safe?
Serious question.
After taxes the guy would only have about 250K. I would suggest land and metals (precious and lead).
Let's say that your $500,000 in your 401K is in the form of Apple stock. Now what happens? Will the government force you to sell the stock so they can convert the cash to bonds? If they force you to sell, who is the forced buyer? And at what price, the current market price or a "government" discounted price?
And then what happens to Apple, who was counting on that stock value for their capital projects for R&D?
If your 401k is held in corporate stock and the government seizes your 401K, is that a de facto nationalization of the company that was represented by your stock?
Maybe it's not Apple, it's Exxon. Seizing all the retirement Exxon stock would be nationalizing Exxon, wouldn't it?
-PJ
If he takes it all out, where does he put it to be safe?
When I suggest to get out of the Matrix, what I mean is to get it out of any electronic account that can be closed and raided on a whim by the government, and into something that can't be reached. And I am not suggesting anything illegal.
Collectible art is going up right now, and for 500K you may be able to get something worth owning. Gold and silver are fine, but be careful that the government doesn't put taxes on them when you convert it back. Collectible coins might be better. Jewelry, diamonds, etc might be good. Or put it into some sort of business. You can even just withdraw the cash, or convert it into foreign currencies.
Real estate is a bit tricky, because I expect that governments will raise property taxes on it. This was specifically mentioned by the IMF when considering wealth confiscation, because real estate is not very liquid and people can't flee the tax easily. But if you buy a productive asset that can generate rent, it might be a good investment.
There are hundreds of things you could do, and maybe just do a little of one thing, a little of another.
Most importantly, study how these governments are hunting down money. What is done in one country will be done in a lot of countries.
Argentina's Economy Is Cratering, Again
Bundesbank's Stunner To Broke Eurozone Nations: First "Bail In" Your Rich Citizens
The "Muddle Through" Has Failed: BCG Says "There May Be Only Painful Ways Out Of The Crisis"
IMF Discusses 'One-Off' Wealth Tax
Don't take any of this as specific investment advice. I am not an expert in art or real estate. But there are many things people can do rather than just have their money sit around in a low interest account, waiting for it to be taken. Personally, I am hoping to be able to start a business with just myself, and be able to work it after business hours, while keeping my day job. That for me would be the ultimate security.
He buys and takes possession of physical gold.He buys some carefully researched gold mining stocks. He buys ammo and storable preserved foodstuffs. Etc.