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Comment by post_break | Hacker News Reader

Gold, make sure your debts are low, trim expenses now. Start thinking long term, what things will you need 5-10 years from now that will only be much more expensive or hard to get.

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If we are heading into a period of high inflation and interest rates, holding debt now is great. High unexpected inflation means that the dollars that you use to pay off the debt are worth less, and you are locked in to a low interest rate.

> and you are locked in to a low interest rate.

Depends on the type of debt, of course. If it's a fixed term loan, and you'll definitely never need to refinance it, sure.

The ideal circumstance would be to take out a loan you can’t really afford immediately before a round of hyperinflation. Bad time to have $100K in a savings account. Great time to owe that bank $2M.

I currently am this person.

What exactly would one do with a 2 million dollar loan? Please don’t say real estate.

That’s all I’ve got. Maybe open a business, I suppose?

I’ll just let it deprecate.

What a mess.

Outside of the standard theme park with blackjack and hookers, you could pick up a race horse. Those can start in the low six figures up to tens of millions. Although if you want to race, do not blow the entire amount on just the horse, because the training + food + maintenance is also going to have some hefty bills.

I’ve never been to a theme park with black jack and hookers. I’ll let you sort that out.

Thanks for the help.

you're making an assumption that your income is going to keep pace with inflation to make it easier to pay off the debt. It very well may not.

/I haven't got a base pay increase in 4 years

True, but at some point you can sell plasma for 4 trillion USD and pay it off all at once.

It's never a bad time to lower your expenses.

Gold, aka Bitcoin for Boomers.

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