Gold, silver and real estate are excellent hedges against inflation...........not 401k plans.Rock wrote:Fiat currency losing its value over time is par-for-the course. As long as the process doesn't move too quickly or suddenly (like in hyperinflation), you can shield your savings from value erosion simply by plowing them into real assets such as real estate or equities.SilverEnergy wrote:If the Federal Reserve keeps printing, which they are, prices will continue to go up.
Like I said before, the price of food and a book of stamps has gone up in the past few years.
It's unlikely that prices will ever go back down significantly again.
Prices have continued to go up since 1971.
If this continues, hyperinflation is on the horizon.
You shouldn't live every minute in fear but the thought of losing my entire savings is very scary if I could have bought some silver to hedge my money and to hedge against inflation.
People who save fiat currency without investing in gold or silver are going to lose EVERYTHING, totally wiped out.
You will have a lot of millionaires who didn't prepare properly who will lose every cent.
Many will die and many will commit suicide.
Of course, one big benefit of rapid currency depreciation in the case of the USA is that it erodes the value of our foreign debt.
What you should really focus on are how wages rise relative to costs of things which matter to you. If they rise commensurately and you invest your excess savings into assets which also rise commensurately, then you're pretty much hedged. I think a lot of Americans with positive net worth have their money invested through 401Ks (which typically have a high equity weighting) and real estate. Both of those assets normally hedge pretty well against inflation.
401k plans are backed and tied to the stocks and mutual funds and are subject to the highs and lows of the economy.
Once the economy crashes, stocks, bonds and mutual funds will crash and since 401k plans are connected DIRECTLY to stocks and mutual funds, 401k plans will go to hell.
See, before our currency was taken off the gold standard in 1971, retirement savings were guaranteed because our currency wasn't toxic......not anymore.
Once the dollar goes to zero, so will 401k plans.