Recession-proofing a retirement

[Notmuchlonger]

My emergency plan. When Im old and almost out of money. Fill out as many credit cards as I possibly can. I figure I could skirt around for a few years running up debt and not paying it. Then when the law comes to get me. Ill get free room and board in a decent place for white collar crime

[youbet]

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Originally Posted by Notmuchlonger My emergency plan. When Im old and almost out of money. Fill out as many credit cards as I possibly can. I figure I could skirt around for a few years running up debt and not paying it. Then when the law comes to get me. Ill get free room and board in a decent place for white collar crime

I was thinking about that Thursday night. Inspired by another thread on credit reports, I pulled mine from Experian and took a look. I tidied up my CC situation a while back and trimmed back to three with a total credit limit in the $100k range. But I still recieve unsolicited offers weekly for new ones. Why not pick up two or three more and increase that limit to $150k or $200k while my credit score is prime plus? Then, as you say, if the poop hits the fan years from now, just "charge 'em up," paying the minimums and worry about the consequences in the next life?

In another thread months ago, it was pointed out that CC dept is forgiven upon death. Not even your estate has to pay for it.

[Notmuchlonger]

I say that. But Ive been fiscally responsible for a good deal of my life. I probably couldn't do it anyways. But its nice to think I might have that last resort emergency net

Or I just have way too much time on my hands.

[DblDoc]

Quote:

Originally Posted by Notmuchlonger My emergency plan. When Im old and almost out of money. Fill out as many credit cards as I possibly can. I figure I could skirt around for a few years running up debt and not paying it. Then when the law comes to get me. Ill get free room and board in a decent place for white collar crime

Its working in Japan: Zichi Lorentz Artosphere: Japan's Elderly Aging Convicts

DD

[Notmuchlonger]

Quote:

Originally Posted by DblDoc Its working in Japan: Zichi Lorentz Artosphere: Japan's Elderly Aging Convicts DD

Lol good find. Interesting article.

[DblDoc]

Quote:

Originally Posted by youbet And you should have a plan for dealing with high, sustained inflation. When doing FireCalc runs, I like to do some testing where I override the default CPI choice and plug in some high numbers just to see how historically my AA would have done with high inflation beyond the period of high inflation we had in the 70's/80's. FireCalc is a super tool for back testing your plans. But it is an historical test, back testing, not projecting. Personally, I think the average rate of inflation going forward for my retirement years is going to be higher than historical trends. So I'm neverous about carrying large percentages of cash in my AA. I went into retirement about 60/35/5. The 60 contains some effort to be defensive vs inflation. The 35 contains significant relatively stable (vs. equities) fixed investments including instruments with maturity dates and the 5% is cash/near cash.

I agree fully. It's scary what bumping the inflation number up to 6,7 or 8% will do to what initally appears to be a safe portfolio .

DD

[Milton]

Quote:

Originally Posted by Notmuchlonger My emergency plan. When Im old and almost out of money. Fill out as many credit cards as I possibly can. I figure I could skirt around for a few years running up debt and not paying it. Then when the law comes to get me. Ill get free room and board in a decent place for white collar crime

Not that I'm condoning your (tongue-in-cheek) plan, but I don't see any "crime" likely to interest "the law". Incurring debts that you cannot possibly repay is 'The American Way'.

Your only liability would be civil; and you could evade that by declaring bankruptcy.