I have a Masters in Econ and Finance. Like I always say, With that degree and five bucks I can get a latte'.
However, look back at other inflation eras and consider how to survive the devaluation of our currency.
1. Buy property that pays something whether that be rent, farm crops, timber resources, or whatever. I was working the medical field in the latter 1970s. There were doctors buying Iowa farmland sight-unseen and watching it double in a year.
RE is a haven for the middle class or small investor who simply wants to protect his hard earned savings. Don't lose your principal even if you don't make great returns for a while. And usually, you can purchase it with a small down payment or even owner financing.
I sold my ancient motorhome to my next door neighbor a few months ago. This afternoon I was chatting over the fence with his new renter.
My neighbor is renting out the motorhome while it is parked in his driveway for $650/month, and the renter was thrilled to find a place so cheap. All he did was run water, an extension cord, and a flex pipe to the sewer connection.
2. Buy what you will need in the next couple of years. Beans, bullets, and bandaids. Don't you wish you had purchased primers for reloading ammo over two years ago? You could make a tidy profit right now. People are paying high prices and not even complaining.
3. Buy productive equipment. I own a small manufacturing company and a small farm. Last week I purchased $100K in brand new equipment at zero percent interest and zero down.
Hell, it will be worth more as USED equipment next year than I paid for it. Not to mention, I intend to use it and make money with that equipment.
4. Precious metals, hell YEAH! As I was watching silver, I told everyone, "Back up the truck; it is time to buy more silver".
5. Get a side hustle and build new skills. I made a huge mistake when I retired and bought an existing manufacturing company. I should have started small time in my garage and learned the business before I spent all of my savings.
The first company I bought was a total disaster. Sometimes I only learn the hard way.
I am old enough to remember the 1970s, however, what we are headed for is more like 1920s Germany or Argentina. Most countries in the world have defaulted or devalued drastically at some point.
Read the book, This Time It's Different. A couple of Harvard economists writing about devaluations and defaults going back to Rome.
I hope you all survive what is coming.
Quoting: darth Great thread OP! Feels solid!
Ignore the trolls, they just want to distract you from giving more solid advise.
What if they plan on stealing the elections again at all costs, AND war?
Also, if you were selling your property and moving south,
What would you do with your profits? Capital gains will be due next tax season.
I could buy gold and silver and sit on it?
Maybe put a sawmill on my families southern farm?
Or build a few RV sites to rent out ?
Maybe try to find a cheap fix-RR-uper by next tax season and work on that?
Any advise appreciated! Thank you
Citra, thanks for the kind words.
Also, thanks for reminding me about capital gains! Gotta talk to my brilliant CPA about how to structure any sale. I used 1031 exchanges before to avoid cap gains taxes.
What to do? It depends on your personal situation.
I would advise against simply holding PMs. I think they have their place, but not as your primary investment. Maybe 10% in silver coins.
The sawmill idea is attractive. It's a lot of manual labor, but very useful.
The RV idea is a good one IMHO. More and more middle class people are being priced out of homes and are going to RVs.
I like RV space rentals and storage units as opposed to tenants in a house or apartments. I was a landlord for 20 years, and the tenants were a pain.
I think your best investments are usually in yourself and your self sufficiency. For example, even a small homestead with water, a garden, and chickens to get thru the difficult years ahead.
I am in my 70s, but I am thinking of taking a welding course. It's something I should have learned many years ago. Personal skill improvement.
Like I said, beans, bullets, and bandaids. Basic preps first. A homestead second IMHO.
A skill that will always be useful.
If you do farming, logging, or construction, having the tools is a major investment that can pay off.
I just purchased a big skid steer with a brush hog. I can rent it out for $500/day where I am moving to.
My plan is to team up with a young person who has the skills and is responsible. The Operator can make over $500/day even after paying me my $500 rental.
If you decide to go the equipment route, go see the tractor dealers. Mine was still offering zero down/zero interest for five years. In an inflationary period, that is a guaranteed winner!
Because I am an old man and I love to tell stories:
My Great Uncle Clyde lost his farm in Oklahoma to the Great Depression and the Dust Bowl.
He loaded up his 8 kids, wife, and what they could move in his truck. They ran out of gas and money in Modesto, CA.
Clyde camped by the side of the road. They had nothing left to eat. He took off at dawn walking. Found a farmer digging stumps. Clyde dug stumps all day without food for one dollar.
He returned to their camp. His wife and kids had all earned one dollar each picking lettuce. They ate beans and bread that night.
They worked and saved. Clyde bought five worthless acres that were too dry to farm. He dug in water and sewer lines as well as installed electrical poles.
He opened a trailer park near Modesto after WWII.
He died as a millionaire.
Tough times and tough people!
