If I thought we were headed toward a full-on depression, I’d be inclined to pull enough money out of savings to pay off my mortgage so I was “free and clear” as my parents used to say.
Their parents learned the hard way when their savings were wiped out in the bank crash of ’29. Paper that could be used to buy tangible assets one day lost all value the next.
In that scenario you’d be better off pulling $250,000 in savings out of the bank today to pay off a house that was going to drop in value to $25,000 tomorrow if you knew the savings were going to be wiped out too. Value is relative. And Jim would probably tell you to buy a little gold. Not to make money, but to cover your taxes for a while until things blew over. At least you’d have a place to live.
I’m not saying we’re headed for a depression, but as long as we’re playing out various doomsday scenarios, I thought I’d throw in my 2 cents.
