[JBinKC]

It is not that simple to cash out your 401K unless you quit your job. Then you have the tax burden ouch. The distribution will force you into the highest tax bracket and depending upon your income may be equivalent to 50% of the distribution and that is assuming your state income tax doesn't penalize them too.

I think you are doing the long term right thing by putting money into Canadian currency. I think the currencies of the countries with the most natural resources are going to perform best. I think the Russian ruble is the best positioned currency going since the tax rate for oil exports is 95% for the oil priced over $25 per bbl.

If you don't want to quit your job my suggestion is to borrow the max from it and if you are so pessimistic invest in a mutual fund that short sells.

I recently put my 401 K into a GIC and in the process of borrowing the max from it to buy Ozark lakefront/agricultural land which I believe its is currently undervalued and will have some price stability in rough times .

[falser]

$this->bbcode_second_pass_quote('kenohio', 'W')ell, I hope you are leaving your company for a better opportunity. Anyhow if you are actually rolling your proceeds from the 401K into a qualified IRA you shouldn't have any penalties.

However if your employer's match wasn't fully vested you will lose a portion of that back into the plan.

Good luck in your new job and your investments.

[Gerbil]

Hello,

I decided to get as much money out of the stock market as I could without incuring too much in taxes. This was about a month ago. This was mostly in IRA's and SEP's. I am past the 59.5 rule so there was no penalty attached. I spent an hour with my accountant and I am glad I did. I did not want to go above the 15 percent bracket and I would have done so had I proceeded on my own without his advice do to our Social Security money which the IRS has figured a way to include if you earn above a certain amount. I was able to get most of our money out of the market but had to leave a little to avoid going into the 25 percent bracket. IRA and SEP are taxed as income - stocks and mutual funds not in retirement accounts are taxed as capital gains - 15 percent. So be careful when taking retirement funds out of the market if you are on Social Security.

For the time being it is in a money market account gaining a tiny bit of interest.

Other than the fact I will have to pay the taxes this year on this money I don't see any down side to this approach - I would have to pay the tax eventually anyway and I feel the money is not at risk from the down turn in the market I think is coming and will last for some time into the future. I lost a lot of ground after the tech bubble broke and have made some of it back up and want to protect what is left.

Why take the money out of the market? For the obvious reasons that have been discussed on this and other PO and financial forums. And, just a very bad feeling about where the economy is headed. And, of course, there is the concern that inflation could eat it up anyway. If we did have any debt I would probably use it to pay it down - I think that is the best thing anyone can do in these times and that is to work toward becoming debt free as possible.

[falser]

$this->bbcode_second_pass_quote('lateStarter', 'I') agree. All my old 401k 'money' is now in an IRA. I have been gradually moving the stuff out of flacid Mutual and Bond Funds and into individual energy related stocks. I have a large percentage of the account tied up in a CD that is due to mature in in July 06 (5.65%). I'll probably take most of it in cash to invest in 'tangible' goods and look for opportunities to move into coal or alternatives with the balance.

Lets' hope we make it to 2007!

[cube]

Add me to the list (and growing) of people who have pulled out of the market. I used to have 100% of my 401K tied up into the S&P 500 but I recently changed it to a savings pool. I would love to transfer my money to a foreign currency or a commodity like gold (impossible).....but of course as we all know Uncle Sam didn't create the 401K system so we can invest in foreign currencies or hedge against the US dollar.

I told my brother in law that my crystal ball of doom and gloom told me that it's time to pull out of the market. He replied that he has a very diversified account spread across 7 different mutual funds. *silly grin* When the market crashes it won't matter which stock/ mutual fund you have....it's all going to go down!

"Sometimes the best potential for profit is preventing a loss."

[turp182]

I'm considering rolling my 401k funds into a qualified IRA that would hold physical silver that my funds purchased. Taking the 401k funds as cash is probably out of the question with my wife.

Here's a link to one IRA custodian (they use HSBC Bank as their metal depository):
http://www.churchtrust.com/iraservices/ ... erral.html

Sterling Trust is another custodian.

You can put bullion in (not just American Eagles). It's a qualified plan so direct trasfers wouldn't be penalized or taxed.

Anyone have any thoughts about this particular approach? I have a decent 401k balance so the fixed fees would be very low compartively (although needing to be paid in cash annually, metal is only touched for disbursements, you get the bullion).

Thanks.

[DantesPeak]

The main advantage of this approach is you own the gold/silver. Conceivably, they may even be able transfer it to you when the IRA is terminated.

The disadvantage is you must still rely on the integrity of the broker, and you would have lower commisions just trading CEF, SLV and GLD, etc..

[Merlin]

These two custodians have been offering precious metals IRAs for years. Please note that it is also possible to establish a self-directed, roll-over IRA that allows investment in real estate as well. You have to be scrupulous about avoiding prohibited transactions with disqualified persons (like buying the house from your mother or buying a house and moving into it yourself). But it is another way to own something "real" in your IRA. It doesn't all have to be paper that can can go "poof" in an instant.

[clueless]

I have an account at Church trust, but have not bought the metals yet. I am still unsure about this, If the Govt. sees financial storm clouds on the horizon I would think they might freeze over IRA's and 401ks.

I think you can make some money having Silver and Gold in a CT IRA but couldn't the Fed's step in and still freeze the accounts ?

[AIM9X]

Hi, I'd like to ask how (if possible) I can transfer or convert my 401(K) to Gold or Euro? I'm not sure this is even possible, but if it is could anyone point me in the right direction so I can get started?

Is it pretty much true in the long term Gold and Euro will be safer than the falling US Dollar? What other options are there to protect my savings and retirement investments in anticipation of PO and collapse of America?

Thanks!

[markam]

It is highly unlikely your 401k will allow gold purchases. You would have to transfer the money to an IRA which is set up to buy and store PMs. And, of course, if you are still employed at the company you have the 401k with, you can't transfer the money to an IRA.

Your plan may allow you to set up a brokerage account and purchase shares in the gold or silver ETFs. that is probably your best hope.

[rogerhb]

$this->bbcode_second_pass_quote('AIM9X', 'H')i, I'd like to ask how (if possible) I can transfer or convert my 401(K) to Gold or Euro?

[americandream]

$this->bbcode_second_pass_quote('rogerhb', '')$this->bbcode_second_pass_quote('AIM9X', 'H')i, I'd like to ask how (if possible) I can transfer or convert my 401(K) to Gold or Euro?

[rogerhb]

$this->bbcode_second_pass_quote('americandream', 'N')o need to go to Nigeria...Auckland is awash with white boys operating first ranking investments schemes.....hahahah.

[EnergyHog]

$this->bbcode_second_pass_quote('AIM9X', 'H')i, I'd like to ask how (if possible) I can transfer or convert my 401(K) to Gold or Euro? I'm not sure this is even possible, but if it is could anyone point me in the right direction so I can get started?

Is it pretty much true in the long term Gold and Euro will be safer than the falling US Dollar? What other options are there to protect my savings and retirement investments in anticipation of PO and collapse of America?

Thanks!

[MaterialExcess]

My employer's 401K has a large variety of funds to choose from. Right now I'm in two different bear market funds, a falling USD fund, and an unhedged foreign bond fund. What kinds of funds can you invest in with your 401K? If there is nothing good, ask the 401K administrator to add some more choices. Probably won't happen but worth the try.

[Hoplite2]

Do I have to quit to get my money? Is there any way to take that money away from the 401k holding company and keep it somewhere safer? I fully believe that the US financial; system is going to collapse before I can get at my 401k. I'm thinking it would be better to take the nominal penalty now as opposed to losing the whole thing.

[DantesPeak]

The answer to your question depends on your age, and what your employer allows.

Generally you have to be at least age 59.5 to avoid the extra 10% penalty to 401k withdrawals. However employers can make their own restrictions, and prevent you from talking money out before retirement/leaving.

[codesuidae]

If you can't take the cash you you can often take a loan out against the vested portion of the balance. The interest rate is pretty good (around 7%) and the interest goes back into your account (you're borrowing your own money, so you pay yourself the interest), and you can usually set up the payments over a long term, say 5 years.

This option can get you access to your money without paying penalties for early withdrawal.

[dissimulo]

Before you do anything rash, consider that the predictions of doom usually do not materialize as fast as people believe they will. Taking your money out is really putting all your eggs in one basket.

I spend the majority of my income on converting my property into an oasis of self-sufficiency. However, I also fully fund my 401(k).

It would suck to predict the end, turn out to be 50 years off, and have to spend the last few years of my life as a greeter at WalMart.