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I have a military pension of $1,293
I have a mortgage on My land of ~$324
(I have enough cash to pay it off set back)
No other debt.
No lines to my property (solar, septic etc)
Live in my airstream (take it places for work)
And Monday or Tuesday they will start on my metal building I'm paying cash for (shop and guest quarters)
My taxes are well under the homesteading exemption...
Will be after the building is done.
Orchard goes in this fall...
I'm not Invonerable, but it'll be hard.
I do work, in a nontraditional way, but part of the goal is to have the fallback of being able to live on my pension.
It's pretty secure.
In a financial meltdown your pension check will surely stop.....as will social security checks, welfare checks, etc. Plenty of folks in Greece found that out recently.
To the OP........the worst thing about owning your house in a meltdown is that (too many)
(will have too much of their total assets) tied up in it and you can't (afford to jettison the
responsibility if/when needed).
otoh... if the house is less than 20% of your assets and especially if it is 100% paid for...
then even multiple SHTF events can be weathered with some maneuvering.
As far as taking your home I cannot answer that for you. I would not see any legal reasons why a paid off home can be taken but I'm not expert either.
Not paying your taxes.
Quote:
Originally Posted by selhars
The best protection against the sky falling would be paid off everything, no debt, AND LOTS of savings. Without savings I'm not sure being debt-free will protect against "the sky falling." One might even ask if SAVINGS aren't more important than having no debt, or a debt free home.
Banks fail your mortgage is gone. Sky falls what would consumer debt matter? System breaks down, what use is paper?
In a financial meltdown your pension check will surely stop.....as will social security checks, welfare checks, etc. Plenty of folks in Greece found that out recently.
Yep.
But then so should my taxes.
After I'm done building I will have cash reserves for MORE than 5 years.
I also have stocks (in this situation should also be hard hit)
But i have a decent little pile of gold and silver I bought before the run up.
All in all.... I'd have something to worry about after 10 years+
As I said I also work, the orchard should be producing in a fraction of that time..... I don't plan on being entirely nonproductive for the next decade!
Perfect, no. Pretty secure.... I think so.
I also don't see that level of financial instability.
We are too big. Failing quality of life, sure. Inflation or deflation, sure.
Chaos, not for an length of time.
SHTF you don't want debt, you want physical assets, you want land removed from large metropolitan areas, you want food, water, and LOTS of brass and lead lol.
Just wondering as so many talk of the problems that are nation is having. Here is my question.
Lets say that you have no consumer debt. Your home is debt free. You don't have any student loan debts. Do you have to worry if the banks fail? Do you have to worry if the sky falls?
It just seems that someone who owes no one would have more protection than someone who owes on a home or some other kind of debt.
Is it possible to still lose a paid off home? If the world falls apart could someone take my home?
No it is not paid off, just wondering.
Well, I think you still have to worry about the system failing because everyone, from the heavily indebted to the massively wealthy relies on the system for everything - jobs, goods, infrastructure, government services, etc.
If the system collapsed and we were in a recession, being debt free might help at first - but at the end of the day, I'd rather be in debt and have a job, rather than debt free and a homeless person begging on the street.
Not to say it is fine to have debt (well, depends on the debt), just that there is much more than simply being debt free.
Well, I think you still have to worry about the system failing because everyone, from the heavily indebted to the massively wealthy relies on the system for everything - jobs, goods, infrastructure, government services, etc.
If the system collapsed and we were in a recession, being debt free might help at first - but at the end of the day, I'd rather be in debt and have a job, rather than debt free and a homeless person begging on the street.
Not to say it is fine to have debt (well, depends on the debt), just that there is much more than simply being debt free.
Sure you can - but my point was that if they sky falls and the economy collapses, debt will become a mostly moot issue, so I would not make myself debt free simply to prepare for economic calamity.
Sure you can - but my point was that if they sky falls and the economy collapses, debt will become a mostly moot issue, so I would not make myself debt free simply to prepare for economic calamity.
I don't think ANYTHING should be done to prepare for such a thing.
You should look at what is most likely to happen.
"personal disasters"
Job loss, illness, car wreck, unexpected expenses etc.... Are MUCH More likely.
But the thing is, EVERYTHING has its impact lessened by being out of debt (all else being equal)
People in Ireland, cypress, etc... Which have had economis issues STILL had their mortgage payment.
(I'm not sure about Zimbabwe)
Thinking post-disaster will wipe out debt is a foolish risk.
I look at it like this:
No matter what, job loss, injury, hurricane, or little green men landing from mars....
I want to eat tomorrow, I want to take a shower, and I want a safe place to sleep.
Increase our contributions to our retirement account.
Pay off the student loans in under 10 years.
Yes we will always pay the property tax on the home. No problems there.
Work is somewhat secure. I don't believe any job is 100% secure but it looks as if I could stay at the same place for the remainder of my life if I choose to and am able to keep working. To top it off I love what I do.
Anyway, I had read some other threads on similar subjects and wondered does it matter if the house is paid off. Thank's for the thoughts so far.
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