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Thread: Stacking physical cash

  1. #121

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    Quote Originally Posted by WhatsUpDoc1958 View Post
    Planning for unemployment by having 6-12 months of living expenses is prudent.
    Absolutely. But that is a different topic. Obviously people should have an emergency fund.
    The answers are in the data

  2. #122

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    Quote Originally Posted by Ryanferr View Post
    Absolutely. But that is a different topic. Obviously people should have an emergency fund.
    I may be wrong, but I thought deflation and unemployment go hand in hand. I think it was that history lesson about the Great Depression that gave me that idea.
    Legal Disclaimer: I am not a doctor, nor do I play one on TV.

    "It's tough to make predictions, especially about the future." -- Yogi Berra
    A variant of this has also been attributed to physicist Niels Bohr, and others.

    "Tis against some menís principle to pay interest, and seems against othersí interest to pay the principal." -- Benjamin Franklin

    The School of Hard Knocks is where you get the lesson after you fail the test.

    Book title: "The Best Way to Rob a Bank Is to Own One"

  3. #123

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    Quote Originally Posted by Ryanferr View Post
    Planning for deflation is probably a losers bet. The Fed has made it clear it will go to hell and back to prevent it.
    that's long term. I think short-mid term deflation is a good possibility. then they will go all out even more than so far. but I've been building cash for months to see what's going to get cheap. if not I'll splurge on myself. I haven't done that in a while and I ain't getting any younger so why not.

  4. #124

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    Quote Originally Posted by WhatsUpDoc1958 View Post
    I may be wrong, but I thought deflation and unemployment go hand in hand. I think it was that history lesson about the Great Depression that gave me that idea.
    You are correct - the good old Phillips Curve.

    I think we are just talking about two different things here. I suggested a re-fi because rates are low and it would reduce his interest expense. He should still have an emergency fund, but lower debt payments would free up more cash to have on hand. Using up cash to make pre-payments on principal when debt is super cheap is a bit counterproductive. You want to pay off expensive debt with cheap debt or cash - hence a re-fi suggestion.

    We are seeing this in the market place right now. Rates are so low that tons of companies are re-financing. Sub-investment grade companies are entering into new credit facilities at pricing around LIBOR + 1.25-1.5 and using those proceeds to pay off more expensive notes rather than using cash to aggressively pay down existing debt.
    Last edited by Ryanferr; 10-01-2013 at 04:37 PM.
    The answers are in the data

  5. #125

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    Quote Originally Posted by Ryanferr View Post
    Planning for deflation is probably a losers bet. The Fed has made it clear it will go to hell and back to prevent it.
    Hedged bets.

    The Fed is not all powerful; unless they are allowed more extraordinary measures, deflation will rule.

    Based on our monetary system, deflation will come. Based on demographics, deflation will come. Based on the average wage, deflation will come. The only question is when.

    I think we are closer to the end of the system.

  6. #126

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    Quote Originally Posted by Ryanferr View Post
    Sorry, coming into this thread late...have you thought about a re-fi? Rates are low. You could reduce your interest payment without having to continue cutting back on fun stuff. Manageable levels of debt is not a bad thing. Aggressively paying down debt when it is cheap seems like a counter intuitive move....
    Why would I refi. I am at the end of my amortization schedule. I have less than $500 in interest payments left. A refi would be galatically stupid.

    You will see why I paid off my debt and it will be gone before the end of the year. I am not missing any "fun" stuff.

    Simplicity and freedom are wonderful.
    Last edited by Atlas Shrugged; 10-01-2013 at 05:09 PM.

  7. #127

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    Quote Originally Posted by Atlas Shrugged View Post
    Why would I refi. I am at the end of my amortization schedule. I have less than $500 in interest payments left. A refi would be galatically stupid.

    You will see why I paid off my debt and it will be gone before the end of the year. I am not missing any "fun" stuff.

    Simplicity and freedom are wonderful.
    At this point, I suppose you are correct. However, looking back now I think it would have made much more sense to re-fi to take advantage of the cheaper rates. But hey, if you still have a few thousand dollars left outstanding, why not reduce $500 to $300?

    Like I said....coming into this one late.
    The answers are in the data

  8. #128

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    Quote Originally Posted by Atlas Shrugged View Post
    So, I am now down to 47K in mortgage debt. We are living extremely sparsely (although I would like to get rid of the cell phone and cable, my sweety will not go that far). As a reminder, in July 2011, I had $286,000 in debt.

    It can be done.

    Right now stacking cash and paying down debt. I have saved almost 50K in interest (if I paid minimum payments).

    Plan is to be debt free within 12 months. There is a storm coming. I think PMs will continue to get hit hard the next 6-9 months. I continue to buy a little here and there, but for the most part this is the plan.

    I want to be debt free prior to the storm hitting. I am convinced that deflation will override all of the debt, it is just a matter of time.
    Atlas, that is a fantastic achievement. Well done.

    I,m in a similar boat and although well ahead on repayments I still have a long way to go. Can't see any way to cut down expenses any further.

    How did you do it? Any tips you can share?

  9. #129

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    Sure,

    - sell off uneeded items.
    - minimize or eliminate monthly recurring bills; do you really need TV?
    - purchase used and at auctions.
    - grow your own food.
    - skip the he latte, brew your own.
    - fill up your own water bottles, skip the pop.
    - entertainment doesn't need to cost much, camp out, take a walk in the park, etc.
    - use coupons.
    - if you use credit cards, always take the cash back option; always pay off at the end of the month.
    - finally, always remember, everything you purchase is less cash in your pocket.
    Last edited by Atlas Shrugged; 10-02-2013 at 05:59 PM.

  10. #130

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    I'm a cash stacker, the first un-needed thing I got rid of was the house which was a money pit. Just the property taxes alone was equal to 6 months rent.
    Hopefully retire from the cubicle life in my early fifties and then go wander around some.
    http://www.coolworks.com/

    For now I'd like to get rid of my car and pickup but I sure like getting around. Here in the city, I know quite a few who just get around on foot or bicycle.

    I would have liked to stack more PM's but I'm just allowing myself an oz. of gold and about 100 oz. of silver per year.

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