Anyone planning to cash out (what's left of) 401k before Jan. 20? [vanity]

self | 1/13/09 | NewJerseyJoe

[NewJerseyJoe]

Any FReepers planning to cash out what's left of your 401k accounts before his messiah-ness is coronated? Even with (a) reduced value of 401ks currently, (b) taxability, and (c) early withdrawal penalty, it could be a good idea -- especially considering that some Dems in Congress have already talked about "safeguarding" (i.e., confiscating) our hard-earned money.

[Publius6961]

Do you keep it under the mattress? Maybe some freepers can provide advice.

That is a certain bad idea.
Massive inflation is inevitable. Not much more of a positive result than just holding fast.

[Xenophon450]

Buy and obtain delivery of physical Gold/Silver. Tell NO one that you have it. I wouldn't throw all of your money into it, but a certain percentage is always a good decision. Also keep some cash on hand.

Also as others have mentioned, non perishable foods and some water. I assume all of FReeperdom already has guns and ammo checked off so I will neglect that.

[Dawn531]

If they move to make it mandatory to convert them to a government run program, then we might cash out. But the penalty plus taxes, at least this year, would be a big hit. We didn’t lose any $$$ so far, didn’t make any, but didn’t lose any because we had moved all our $$$ to a stable fund. So we’re taking a wait and see approach.

[Blood of Tyrants]

Roll it over into an IRA and then you can invest in precious metals that are held in a secure location.

[Jersey Republican Biker Chick]

"Good advice or buy a home on some little island drink margaritas and sit on the beach and read, go fishing......."

Jimmy Buffett, is that you?

[OB1kNOb]

I may borrow out of mine. I cant cash it out.

I'm thinking the same thing too. I figure I can at least have some of it in my hands to use in the event they confiscate the rest.

[stockpirate]

I think it is illegal to offer advice about this subject without a lic.

[EQAndyBuzz]

“I lost 1.9% in 2008, not exactly panic time.”

I lost 40%. Every time one of my securities come due, I covert it to cash.

[SamiGirl]

Hyperinflation scares the heck out of me. Never thought I’d be event thinking about it.

[Uncle Miltie]

The big events happened last September through November. This is just the aftermath.

[SamiGirl]

I gotta get seeds too? I got some healthy weeds growing, maybe I can learn to like them.

[woofie]

just got a note from my nephew who is running a hedge fund. he says they think things are gonna get really bad.

for what its worth

[silentreignofheroes]

Done deal,now if the machine shop would finish with our ‘48 8n we’ll be set.

[oh8eleven]

But, what do you do with the money?
Most retirement accounts have multiple options, including one to invest your money in a fixed rate fund.
I pulled all my retirement money out of "the market" late last January, and put it all into such a fund.
While too many people saw double digit losses last year, my return was up over five percent. Five percent ain't much, but it's safe.
If you're older and/or adverse to risk, this may be what you're looking for. If you're still young, you have many years to recover and might want to just wait it out.

[NEMDF]

or at least a couple of drinks...

[Sunshine Sister]

I was in the fortunate place earlier last year to retire. That was before the free fall started. I moved my 401k to a fixed guaranteed interest product with New York Life. I'm not necessarily recommending them but my insurance agent/planner recommended it. It's growing at the proper rate and I have not lost a dime of it. Check it out if you can move your money without penalty.

My annuities and IRA are a whole 'nother story. Yuck!

[1rudeboy]

Why is Jan. 20th different from any other day. If Congress decides to make a law affecting your 401(k) retroactive, you’re screwed anyway. And if it doesn’t, then you should be keeping your eye on what bills are passing through Congress.

[Chances Are]

It just may be.

However, it looks to me like everyone here is simply offering their own opinions.

FWIW, I believe you don't require “licensing” if you start an investment-type letter. I think that's already been settled in the courts.

But don't trust me on this. If you've a question, consult your attorney.

CA....

[stockpirate]

Well now that last statement covered you.

[Jim Noble]

I took it all, and paid the taxes, in 2007 and early 2008.

Lookin' good.