What the experts say

Inflation: Expect the unexpected

Some economists are warning that any new economic setback could result in serious deflation, said Penelope Wang in Money. Others argue that the federal government’s borrowing spree must inevitably lead to high inflation. You need to protect yourself “in the event of either crisis.” One strategy might be to “tilt your portfolio” toward companies that make and sell products that “people have to buy no matter what,” such as groceries and medicine. Take a look at Sysco and Johnson & Johnson. Likewise, consider blue-chip companies with no debt and “tons of cash.” They’ll hold up under either deflation or inflation, since they don’t rely on loans. Right now Microsoft and Abbott Laboratories each have about $9 billion in cash, and by historical standards they look undervalued. “In inflationary times, the market favors cheap stocks.”

Borrowing from your 401(k)

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In “normal times,” you should never pull money out of a retirement plan prematurely, said Jeanne Lee in CBSMoney

Watch.com. “But these aren’t normal times.” If financial troubles have left you with no choice but to tap retirement funds, a 401(k) loan may be the least bad method. Provided that your employer’s plan permits it, you can borrow up to 50 percent of your balance, “with a maximum loan of $50,000.” Sure, you’ll owe interest, but the rate on a 401(k) loan is typically only the prime rate plus one or two points—and “you’re paying the interest to yourself,” not to the bank. One “giant” caveat: If you leave your job, the entire loan usually needs to be paid back within 60 days.

Banking by smart phone

New mobile payment applications for smart phones mean you may soon be able to leave your wallet at home, said Diana Ransom in SmartMoney. More than a million people have downloaded eBay’s PayPal Mobile app, which lets users transfer money simply by “bumping” smart phones. But protect yourself from high-tech pickpockets: Only use applications that require a PIN or password, and make sure your phone’s SIM card—the small chip that tells the carrier’s network that the device belongs to you—has been password protected. Change passwords frequently—and, whatever you do, don’t try to remember them by storing them on the phone itself.