To cash out or no?

[gunman_7]

Just received a call from a close friend, his wife is a teller at a small town bank (2k people). She has had almost $50k get withdrawn so far in the first hour or so from people concerned about what's coming.

Obviously everyone should have some cash on hand but how much with what's being discussed in the political forecast.

So what's your thoughts?

Pull a little, couple grand?
Moderate say 10k?
Or clean a person's savings?

Just curious as to the train of thought across the Hide. Let's work in hypotheticals here, as a person shouldn't be stating if they actually pulled $50k in cash out on the interwebs...

 

[buffalowinter]

If things really get that bad, paper money will be worthless. Paper money is only backed by faith in the government.

 

[E. Bryant]

Having a few weeks of cash on hand is a good idea.

Anything more than that might not make much sense; if things get so bad that I felt the need to liquidate my savings, then I don't think those green pieces of paper would hold any value.

 

[shields shtr]

If you are talking just straight up savings or checking accounts, I figure if we get to a point where you are doing that, paper money will have little to no value anyways. Markets, I would act a little different. Depending on your age, how you manage your 401k and other investments might be a little stressful right now.

 

[diverdon]

I'm much more worried that they will make the currency worthless. Perhaps wire the money to a company that will ship you silver.

 

[2aBaC̶a̶]

Or you can convert it to Chinese Yuan

 

[Threadcutter308]

You guys are all making too much sense. Unfortunately, mob/herd mentality tends to define trends;

“Think of how stupid the average person is, and realize half of them are stupider than that.” George Carlin.

 

[shields shtr]

“Think of how stupid the average person is, and realize half of them are stupider than that.” George Carlin.

This is so true. And it is only getting worse.

 

[brianf]

Cash is always king.

Precious metals are useful after the whole world shuts down and the zombies come out, not happening anytime soon.

if it gets bad enough that US citizens will have to use gold coins and emeralds to buy bread...gold coins and emeralds won’t be worth anything either.

If it makes you feel better take out 2 months worth of “living” if it’s just in a checking account getting 0 interest.

anyone who sells off market stocks/bonds is just giving away money

 

[Maggot]

General thoughts are have cash to cover at least 3 months.

I only keep enough in the bank to cover monthly expenses, the rest is put into other easily liquidatable places.

Depending on where you live a good stash of bottled drinking water might be a good idea. I can go a couple weeks without eating if I have to, water, not so much.

Get out of the cities while the getting is good.

 

[tuckybill]

If they can dump 600 bucks into your account they can also take out from that account. They could just say any account over 50,000 is for
fit to the gov't new reparations trust for poor african americans. What would that poll number be? 60% approval? 70%? Everyone would just laugh at the saps that had saved and denied themselves stuff to save money. Their "greed" backfired on them" they would laugh. They won't do it, I don't think, but those that say they CAN"T do it are wrong.

 

[hollowoutadime]

Overreaction.

 

[Austan]

If they can dump 600 bucks into your account they can also take out from that account. They could just say any account over 50,000 is for
fit to the gov't new reparations trust for poor african americans. What would that poll number be? 60% approval? 70%? Everyone would just laugh at the saps that had saved and denied themselves stuff to save money. Their "greed" backfired on them" they would laugh. They won't do it, I don't think, but those that say they CAN"T do it are wrong.

The government would never steal from you. I mean it's like they have set a precedent of doing so... in 1933.. by executive order... by FDR...
But sure, put your money in gold and silver.

The Great Gold Robbery of 1933 | Mises Institute

The Act gave the secretary of the Treasury the power to require all individuals and corporations to hand over all their gold coin, gold bullion, or gold

mises.org

" A key piece of legislation in this story is the Emergency Banking Act of 1933, which Congress passed on March 9 without having read it and after only the most trivial debate. " Sound familiar...

 

[AManWearingAHat]

Im not an economist but in the era of virtual money we live in, bank runs causing default I think are unlikely. Especially when the FED can just invent money out of thin air to prop up banks. I think right now the better bet is to diversify and find ways to hedge against hyper inflation (if it comes) rather than banks collapsing. I think what is saving us so far is that all nations are printing money like crazy to prop up their economies so the amount of currency out there, relative to other currencies, has been more or less stable. As I understand it this helps in maintaining confidence in a currency versus printing insane amount of USD in a vacuum meanwhile other nations have a stable amount of Euros/ GBP/ CHF/ etc.

As others have pointed out, if we're at the point where we cannot withdraw cash, I don't think that cash will be worth very much anyway. That's my amateur economic take.

 

[Maggot]

If they can dump 600 bucks into your account they can also take out from that account. They could just say any account over 50,000 is for
fit to the gov't new reparations trust for poor african americans. What would that poll number be? 60% approval? 70%? Everyone would just laugh at the saps that had saved and denied themselves stuff to save money. Their "greed" backfired on them" they would laugh. They won't do it, I don't think, but those that say they CAN"T do it are wrong.

I believe it was Greece where they did exactly that. One other country as well.


Greek Tax Officials Confiscate 105,000 Bank Accounts So Far ...

www.thenationalherald.com › arthro › greek_tax_offici...

Dec 23, 2018 — Greek Tax Officials Confiscate 105,000 Bank Accounts So Far ... ATHENS - With wealthy Greeks and others who are hiding their money in secret foreign bank accounts to avoid paying taxes are escaping government raids on ... Officials estimate the amount brought in by the end of the year will reach 6 ...

 

[brianf]

The government would never steal from you. I mean it's like they have set a precedent of doing so... in 1933.. by executive order... by FDR...
But sure, put your money in gold and silver.

The Great Gold Robbery of 1933 | Mises Institute

The Act gave the secretary of the Treasury the power to require all individuals and corporations to hand over all their gold coin, gold bullion, or gold

mises.org

" A key piece of legislation in this story is the Emergency Banking Act of 1933, which Congress passed on March 9 without having read it and after only the most trivial debate. " Sound familiar...

shutting the banks for a few days is not the same as stealing your money like Panama did.

perspective guys...

 

[oneshot86]

get some cash, you will need it
think greece

 

[brianf]

Actually all you gold guys have it wrong...

invest your 401k in tin foil, that’s the new currency lol

 

[RGStory]

 

[Steve_In_29]

Always good to have a cash stash, good times or bad. For really bad times it's silver and gold, beyond that you're wishing for bullets and beans.
Any Mormons here? I heard a long time back they were supposed to keep two years of supplies stashed to meet whatever comes.

Or maybe all of the above.

Not a Mormon but am currently living in a heavily Mormon area. Yes their religion(?) tells them to keep a year or so of everything.

Living in CA earthquake country got us started on prepping for disasters (of any kind) and we simply continued it. Here in AZ we have supplies to last us quite a long time even if everything shuts down. Neighbor and I are slaughtering another pig to send to the butcher some time this month. Freezers will be full to capacity with that.

Precious metals are only worth anything if there is still some kind of functioning society. They are more a store of wealth for after the recovery, then day to day currency. Plus remember the .Gov outlawed ownership of gold once before (and confiscated it), so whose to say it won't happen again.

 

[308pirate]

. Plus remember the .Gov outlawed ownership of gold once before (and confiscated it), so whose to say it won't happen again.

They'd have to know who has it and where

 

[Austan]

shutting the banks for a few days is not the same as stealing your money like Panama did.

perspective guys...

They didn't just shut down the banks. The conducted a forced sell off of private citizens gold and paid them a fraction of it's value. Then turned around in 1934 claiming the value much higher increasing the value of the now governments gold by 3 billion dollars. It was confiscation under a different name and my main point is, the current government is not less corrupt now and I have no doubt they will use maximum leverage of the crippled economy they created.
I would expect the gov would love to convince everyone to trade in their cash for precious metals. This would drive toward the cashless society they desire most. They'll think up a reason later to force you to trade in your precious metals for credits, to be later referred to as social credits. I would have scoffed at these possibilities as being beyond my time on this earth but they speed at which we are seeing things unfold, I'm not so sure.

 

[DarnYankeeUSMC]

Paper money will substitute for TP since it's actually cloth and not really paper.
Gold, silver and any precious metals will be banned by dot gov so you will be a criminal if you don't turn it in.
So you are down to commodities and lead

 

[earthtrekker1775]

Paper money will substitute for TP since it's actually cloth and not really paper.
Gold, silver and any precious metals will be banned by dot gov so you will be a criminal if you don't turn it in.
So you are down to commodities and lead

We will already be criminals.

 

[brianf]

As above

if your afraid of the govt taking a certain commodity they you should be afraid of them taking all currencies.

“hording” anything that the govt gives a worth to is useless.

once the govt makes a currency useless after initial inventory is sold/used by “hoarders of currency” they ones who have the now useless currency can not purchase new stock/inventory.

After the initial spend everyone is in the same boat no matter what you have under the pillow.

 

[vinniedelpino]

Guys... there's no reason to worry.

My financial planner at Edward Jones says we need to keep buying. Every dip is an opportunity to buy low and make a killing.

Don't paraphrase me, but it went something like this:

"If you look at this graph on the effects of interplanetary alignment on the commodities markets you'd see that there's an inverse ratio between yields on class A shares vs. treasury yields in emerging markets, particularly in the punani sector."

I'm pretty sure that's what he said. Give or take.

Also... this advice has nothing to do with his compensation.

 

[Threadcutter308]

Guys... there's no reason to worry.

My financial planner at Edward Jones says we need to keep buying. Every dip is an opportunity to buy low and make a killing.

Don't paraphrase me, but it went something like this:

"If you look at this graph on the effects of interplanetary alignment on the commodities markets you'd see that there's an inverse ratio between yields on class A shares vs. treasury yields in emerging markets, particularly in the punani sector."

I'm pretty sure that's what he said. Give or take.

Also... this advice has nothing to do with his compensation.

Did he also recommend going long on Bitcoin last Friday ?

 

[34vld]

If you plan on taking all your money from your savings/checking accounts, how do you plan on paying for your Amazon, Target, Walmart etc. orders? Online sales don't take cash. Or more realistically, how do you plan on ordering ammo?

 

[Nik H]

This thread cracks me up

 

[R0man]

I'm much more worried that they will make the currency worthless. Perhaps wire the money to a company that will ship you silver.

Bingo.

 

[vinniedelpino]

Did he also recommend going long on Bitcoin last Friday ?

Mutual funds are where it's at apparently. Lots and lots of mutual funds.

Never any real estate, cryptocurrency or tangible assets. No limited partnerships, QOZ funds or anything like that either. If it doesn't fall under the Edward Jones umbrella, it's not worth investing in.

 

[Threadcutter308]

"If it doesn't fall under the Edward Jones umbrella, it's not worth investing in".

I'm not sure if you're being sarcastic, or serious.........

I'm hoping sarcastic.

 

[apexking]

From someone who bought and sold a lot of gold, go look up the milkshake theory. Basic premise is that the dollar is the primary global currency and given how interwoven it is with the rest of the world it has a sort of hedged security.

I'm pretty much done with gold.

 

[vinniedelpino]

I'm not sure if you're being sarcastic, or serious.........

I'm hoping sarcastic.

Entirely sarcastic. I put most financial planners in the same camp as seedy used car salesmen and politicians.

They get paid a percentage of your assets under management, so it's highly unlikely they'll ever tell you to cash out or invest in something they can't make a commission/fee on. There's a massive conflict of interest there. I trust them about as much as CNN nowadays.

I'm no expert, but mass political polarization and regular rioting usually isn't a good sign.

I'm always bullish about the punani sector though. Especially when mercury's in gatorade or whatever the fuck that was about.

 

[TheHorta]

Just my $0.02 in a world where pennies are worthless, but...

If you are able, you’re a fool if you don’t keep at least $5K in untouched reserve cash on hand at all times.

It’ll be some time between losing access to cash and when it becomes useless.

 

[Jscb1b]

Invest in night vision, that shit is expensive.

 

[Threadcutter308]

Entirely sarcastic. I put most financial planners in the same camp as seedy used car salesmen and politicians.

They get paid a percentage of your assets under management, so it's highly unlikely they'll ever tell you to cash out or invest in something they can't make a commission/fee on. There's a massive conflict of interest there. I trust them about as much as CNN nowadays.

I'm no expert, but mass political polarization and regular rioting usually isn't a good sign.

I'm always bullish about the punani sector though. Especially when mercury's in gatorade or whatever the fuck that was about.

Perfect

 

[2aBaC̶a̶]

Ammo is turning out to be a pretty good investment. And if it ever looses value I can shoot it.

 

[Steve_In_29]

They'd have to know who has it and where

True but many people stash it in banks or with gold companies. Did you buy the gold face to face for cash.? If not there is a record somewhere and it might take a while but they will eventually come looking.

Also the amount of people/businesses willing to take gold in lieu of cash would seriously shrink. So gold would have no value if all you can do is hide it under the floorboards.

 

[Tater Salad]

 

[vinniedelpino]

If it doesn't fall under the Edward Jones umbrella, it's not worth investing in.

Try VANGUARD - become a Boglehead.

I don't have any issues with vanguard. I have an article on my desk from forbes about a study they did where they compared a wide sample of people that invested on their own vs. people who invested through financial advisors. After accounting for fees, the people who invested on their own came out on top. I can't find it at the moment, but this article basically reiterates the study's findings:

The Dirty Little Secret Investment Advisors Don't Want You To Know (forbes.com)

95% of the industry is a complete sham. No value for exorbitant fees.

I'm not telling anyone to pull their investments or anything like that. Just be skeptical of financial advisors in general.

 

[Romeo458]

Ponzi schemes are great until everyone at the bottom pulled their money out. Then they collapse, unfortunately the people at the top of usually already made a small fortune on the people at the bottom of lossed but what do you think our banking system is?

Fractional reserve banking creates money out of thin air with what you deposit. For every $100 you deposit the bank loans out 10,000 on that hunderd because most people leave their money in the bank instead of taking it all out., that's what loans are, and its just like the federal reserve does to the nation.

 

[vinniedelpino]

Invest in night vision, that shit is expensive.

When the rest of the world is blind, be one of the few that can see.

I could see benefit there.

 

[Nik H]

Just my $0.02 in a world where pennies are worthless, but...

If you are able, you’re a fool if you don’t keep at least $5K in untouched reserve cash on hand at all times.

It’ll be some time between losing access to cash and when it becomes useless.

Someone that can actually think rationally

I keep 2 months of expenses in cash at all times

 

[Ison]

Jack Bogle was death on financial advisors, when you tell your financial advisor you've been looking at Vanguard they turn pale.

John C. Bogle - Wikipedia

Watch the Retirement Gamble, it's a PBS documentary. Jack Bogle starts talking about 24 minutes into the video.

 

[Ruger1300]

If you plan on taking all your money from your savings/checking accounts, how do you plan on paying for your Amazon, Target, Walmart etc. orders? Online sales don't take cash. Or more realistically, how do you plan on ordering ammo?

Like there is any ammo to order!

 

[TxWelder35]

Just my $0.02 in a world where pennies are worthless, but...

If you are able, you’re a fool if you don’t keep at least $5K in untouched reserve cash on hand at all times.

It’ll be some time between losing access to cash and when it becomes useless.

Yep.

SHTF cash in the safe is for buying a truck bed full of essentials right before the cash is worthless.

if we are talking true shtf, EMP, event, etc, ammo will be one of the most sought after commodity right behind your daily essentials, alcohol, etc

if you have thermal/NV you are pretty much an African warlord now.

 

[3-0-hate]

Pull out less than $10k at a time if youre gonna do it..

 

[jrhtx]

Pull out less than $10k at a time if youre gonna do it..

Better rethink that number. I understand now it's "anything unusual" for your account.

 

[Carlos Danger]

Cash is always king.

Precious metals are useful after the whole world shuts down and the zombies come out, not happening anytime soon.

if it gets bad enough that US citizens will have to use gold coins and emeralds to buy bread...gold coins and emeralds won’t be worth anything either.

If it makes you feel better take out 2 months worth of “living” if it’s just in a checking account getting 0 interest.

anyone who sells off market stocks/bonds is just giving away money

The only precious metals I'm investing in are Pb & Cu.