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Methods to protect your 401k

 
Martin Farbles
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User ID: 1339524
United States
06/24/2013 10:30 AM
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Methods to protect your 401k
I have been a member on this site for about 2 years and lurking for roughly 5 years; first thread. I am no money or market expert but I believe through my cumulative experience I'd like to help people weather the bond and market collapse that is coming. Through never ending QE's from the FED our money is worthless so how do we protect our assets? If the world economy crashes there is nothing that will save our assets but for large dips in the market we can benefit or stay stable with some key moves.

In 2008 I took a huge hit in my 401k and I vowed to figure out a plan to preserve my nest egg the best I could the next time this happened. Well here is my chance to put my knowledge to the test. The Bond market is going to decrease severely since the FED is stepping down its buying of US Treasuries so this is no safe haven like the past. Also stocks are obviously manipulated so the TPTB are going to start using the market as their personal ATM. Well what do we do?

Most 401k's allow to borrow up to half of your total. By borrowing half of your 401k you decrease your risk in the market. Yes, you'll pay some interest but it is usually a small amount and you pay it to yourself. If you want to try and capitalize on the falling market use your borrowed money to short the market like the big boys. TPTB gain when the markets fall by shorting and gain when the markets go up by going long on stocks.

I know this is risky but so is just letting your money sit in an account getting eaten away. To protect your remaining account balance I am placing my money in a blended mutual fund geared for retirees. This fund is meant to not lose too much but also not gain, just tread water so to speak. I also believe people should hold precious metals for severe emergency scenarios but don't expect to gain value it's just for protection. I can hear the populace now, "But you can't eat precious metals", True, but eventually we will go back to the gold standard. Remember the average life of a Fiat currency is 30-40 years, the US is currently 42 years (Nixon took us off the gold standard in 1971).

What we are seeing now is the result of kicking the can down the road from the 2008 financial crisis and this time it will be worse. TPTB will take your 401k but not outright. The fleecing will happen by crashing the market and decreasing your value. It's a sneaky way to "Bail-In". Good luck to all. Please be kind as I'm just trying to help :)
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