THE 401k Thread (merged)

by **codesuidae** » Mon 30 Oct 2006, 11:52:09

I definately agree with keeping the 401k around, particularly if your employer matches your contribution. Mine matches 50% up to 5% of my annual income. Many match 100%. That is a good chunk of free money and an automatic return on investment of 50%-100% in the time it takes to vest. It's pretty hard to beat that.

While its tempting to liquidate the fund and you may have reasons to do so, remember that planning is all about risk managment. The economy is still good right now, so take advantage of it to increase your economic power.

by **emailking** » Mon 30 Oct 2006, 12:56:31

I don't get any matching so I contribute nothing. They automatically contribute 3% of my salary (will increase to a max of 6% over the next 3 years). So I just let the money sit there. I don't expect to ever see any of it.

by **Bytesmiths** » Mon 30 Oct 2006, 14:29:36

I agree with emailking and dissimulo -- if it doesn't cost you anything, use it as a hedge.

No one knows what will happen. I think it's safe to say the future will not be like the past. So the best advice might be to buck conventional wisdom, while hedging your bets so you don't lose everything if conventional wisdom proves correct!

by **lateStarter** » Mon 30 Oct 2006, 15:41:47

From my own experience, the money is a bit easier to get to if it has been rolled over into an IRA. I couldn't find anyway to avoid the 10% penalty, but I was happy to have 90% of what was in the account as opposed to 0%.

What made it less painful for me was to not be employed at my formerly high-paying salary level - actually I wasn't even employed at all (by choice). Then, I just took out enough each year (usually around 15k) so that with standard deductions and no other income I was able to avoid paying the additional 20+% I would have had to pay since it is treated as income.

The other thing that helped with it being in an IRA was they gave me the option of paying the 10% at withdrawal or later. Some places will take take out the 10% immediately, no questions asked.

I haven't squandered it (all) but have been investing in land and other hard assets (stuff I can touch). I also used a portion of the funds to pay off credit card debt. Currently, I have no mortage, no car payments, and in less than 1 year, I will be totally debt free except for my wife's student loan (remaining balance, less than 3K and at a very low interest rate)...

Bottom line for me is the belief that I would have had as much chance of seeing that money in the future as I would have had getting any SS money that is supposed to be coming my way. If there was anyway to get at that money early, I'd be all over it.

by **mikeh433** » Sat 04 Nov 2006, 20:29:48

This is just my opinion, but with too much study - maybe sound or maybe not. I have heard there are alot of people who never before bought gold that have started to for the very first time, as they sense that something is terribly wrong. That is THEIR opinion based upon whatever they base it upon.

My opinion is you have 2 weeks to do that, out of stocks. Then enough time to wait another 2 weeks for check and purchase and shipment. BUT, this forum is mostly about buying/doing other things, so consider doing 1/2 that - very seriously. The best off is one who don't need gold, because they are not in serious want. But if you still need RE or land, then get some gold, silver and that for those investments are currently, and I think will continue moving in extreme opposite directions.

With that said, I have found one of my orders is delayed 2-3 weeks before shipment. What if it all worked out OK, except you never got the shipment before TSHTF, nor anytime afterward?

by **korosten** » Sat 09 Jun 2007, 11:52:58

Hi, Just 2 days ago I went from being in total denial to thinking of selling our house and moving - I feel like a nut case :-)

. Anyway, I was wondering what might happen to our 401k's once things get a bit nasty. My guess is that stocks and money will lose value drastically.

So, what should we do? Would you take out the money now (or soon) and pay the tax and other penalty? Or wait and see and risk losing it all?

by **Tyler_JC** » Sat 09 Jun 2007, 12:37:12

$this->bbcode_second_pass_quote('korosten', 'H')i,

Just 2 days ago I went from being in total denial to thinking of selling our house and moving - I feel like a nut case :-)

.

Anyway, I was wondering what might happen to our 401k's once things get a bit nasty. My guess is that stocks and money will lose value drastically.

So, what should we do? Would you take out the money now (or soon) and pay the tax and other penalty?

Or wait and see and risk losing it all?

Thanks,
Chantal

by **Merlin** » Sat 09 Jun 2007, 12:45:20

$this->bbcode_second_pass_quote('korosten', 'W')ould you take out the money now (or soon) and pay the tax and other penalty?

Or wait and see and risk losing it all?

Website · by **roccman** » Sat 09 Jun 2007, 12:49:22

"First, do you think you are able to fortell the date of the big crash (losing it all)?"

3rd 1/4 07

by **MonteQuest** » Sat 09 Jun 2007, 12:58:51

$this->bbcode_second_pass_quote('korosten', 'A')nyway, I was wondering what might happen to our 401k's once things get a bit nasty. My guess is that stocks and money will lose value drastically.

So, what should we do? Would you take out the money now (or soon) and pay the tax and other penalty?

Or wait and see and risk losing it all?

Website · by **roccman** » Sat 09 Jun 2007, 13:05:23

"sell that house and buy one outright"

In this market selling is getting harder ahd harder to do.

Credit is getting harder and harder to get.

People are scared.

by **clueless** » Sat 09 Jun 2007, 13:24:19

$this->bbcode_second_pass_quote('', '"')sell that house and buy one outright"

In this market selling is getting harder ahd harder to do.

Credit is getting harder and harder to get.

People are scared.

by **Mircea** » Sat 09 Jun 2007, 14:10:52

$this->bbcode_second_pass_quote('roccman', '"')sell that house and buy one outright"

In this market selling is getting harder ahd harder to do.

Credit is getting harder and harder to get.

People are scared.

by **Daculling** » Sat 09 Jun 2007, 14:30:32

$this->bbcode_second_pass_quote('Mircea', '')$this->bbcode_second_pass_quote('roccman', 'T')hen take the rest of the money and divide it up between dollars, pound sterling and Euros.

by **mmasters** » Sat 09 Jun 2007, 17:34:08

The USD loses value it will drag other currencies down with it. Some will fare better than others but there is no safe haven in modern currencies.

by **z28colt** » Sat 09 Jun 2007, 17:51:36

What's the best way to invest in foriegn currencies? I've been wanting to open a bank account in euros, sterling, or AUD, but I'm not sure how to do so cheaply.

by **Daculling** » Sat 09 Jun 2007, 18:00:19

$this->bbcode_second_pass_quote('mmasters', 'S')ome will fare better than others but there is no safe haven in modern currencies.

Website · by **roccman** » Sat 09 Jun 2007, 18:07:55

"I can't see putting all my money in gold"

Why?

Globally we have placed all our money in oil and in my mind every company on the NYSE tacitly assumes cheap oil will continue to be available in the future. We know this is an illusion. So every company on the NYSE is overvalued.

This rational extends to ETFs as well as the assumption is the same about the availability of cheap oil.

So why not all gold?

by **MonteQuest** » Sat 09 Jun 2007, 18:18:08

$this->bbcode_second_pass_quote('z28colt', 'W')hat's the best way to invest in foriegn currencies? I've been wanting to open a bank account in euros, sterling, or AUD, but I'm not sure how to do so cheaply.

by **Daculling** » Sat 09 Jun 2007, 18:27:29

$this->bbcode_second_pass_quote('roccman', '
')
So why not all gold?

THE 401k Thread (merged)

Re: Ramifications to cashing out 401k EARLY?

Re: Ramifications to cashing out 401k EARLY?

Re: Ramifications to cashing out 401k EARLY?

Re: Ramifications to cashing out 401k EARLY?

Re: Ramifications to cashing out 401k EARLY?

What about our 401k?

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