First, let me clarify a few things.
Establishment: the “establishment” refers to the federal government and banking elites.
Steal: yes I did say “steal” because that’s what it’s called when someone takes your property by force. I also said “property” because that’s what your money is, it’s YOUR PROPERTY.
So, let’s clarify further. Say you own a truck that is sitting in your driveway. It’s a nice, paid-for truck worth around $10k.
You get a knock at your door. You look out the window and see a man in a black suit that looks like a detective or some federal agent. You open the door and he introduces himself as John Smith…from the IRS. You greet him and ask, “What can I do for you?”
He politely but firmly asks you your name and recites your social security number to confirm your identity. You reply and confirm to him that this is you.
He then tells you that he is taking your truck because the government needs it to use the proceeds to help pay for social security, foreign wars, medicare, and other things.
If you resist the confiscation of your truck you will be criminally charged and thrown in jail.
Hopefully, thinking about this hypothetical situation should make you mad right now; this man -from the government- just came and stole your truck!
So, let me ask you, what’s the difference between someone (even if it is the government) stealing your truck or stealing your money from your paycheck? They are both your property (the truck is probably worth more since the American dollar is worth pennies these days, but that’s another story).
The government has brainwashed you into thinking that your money is not your property and they can take it as they so desire. So, you think nothing of them robbing you blind every two weeks when you get paid. The only good thing in this situation is that your money isn’t actually backed by gold. If it were, you’d really be getting screwed.
How This Relates to Your 401K
The economy will collapse soon and when it does, the establishment will use two methods to steal your nest egg:
1. You will lose most of your money by a transfer of wealth. In a nut-shell this happens when big hedge funds and mega banks (the one’s that actually move the markets) sell their own shares which happen to be the same investments that you have made in your 401k. The money or value that you once held in your 401K won’t just disappear- that wealth is sold and moved to another place before you knew what happened. The wealth that you once retained, is now owned or held by someone else – the Establishment!
2. Then the Gestapo….sorry I mean the IRS will steal your money when you need it the most (what’s left of it anyway). By this time the establishment has taken most of your balance by the transfer of wealth I described above. Now, since an economic collapse just happened, you’ll probably hurting for cash and will want to use the money you have in your 401k to help you get through the tough times. If you’re lucky you’ll have $25k to $50k left. Providing your not of age, you’ll pull your money out with a penalty. Ah yes, you will be penalized for using your own property- your money. What a concept. And to think they scared you into using a 401k as a “tax shelter.” How ironic. Since you have to pay a 10% penalty and income tax on the money you withdraw, you will lose another 30-40%. I think you get the picture.
What was once $300-400k, will be considerably less after all this thievery, maybe less than $50k. These numbers are just estimates, and could swing either way depending how bad the collapse gets.
- Diversify – Do NOT keep a large portion of your investments inside your 401k. If your 401k already has a large sum, try investment accounts that are easy to liquidate without penalty from the IRS.
- Invest in precious metals – Precious metals get a bad rap from mainstream investors, but when the SHTF, precious metals will hold there value better than a lot of other choices.
- Hold cash – Even though the Dollar has lost 99% of it’s value since the inception of the Federal Reserve, if there is a contraction in the money supply, the value of the dollar will go up dramatically.
- Pay off your debt – Your debt will be a millstone around your neck. Get rid of it while you still can. And for those of you who are relying on your self-sufficient homestead to get you through lean times- if your property is mortgaged, pay it off as soon as you can. Don’t think the bank won’t come take it when you can’t pay the payments due to a job loss. They don’t care how self-sufficient you’ve made it or how much money you have invested in it- if you can’t pay the loan they will repossess.
- Live within your means – Save your money for the coming rainy days…or should I say for the coming “perfect storm.”
I respect Dave Ramsey in many ways but he would hate this post. In fact, he would probably call me an idiot. He does not foresee a collapse happening, and this is where I disagree with Dave Ramsey.
That said, your finances are your responsibility. Don’t hold me accountable- this is information I am presenting to you and is my opinion. Good luck.