The even bigger problem with your 401k is that pretty soon the government is going to confiscate it and stick you with a government annuity in its place. Once our government finally realizes its own inevitable Greek-style funding crisis and 100% of Federal revenues are being consumed by debt service and Social Security alone, do you really think they’ll be able to pay your annuity when you want to retire?
I took the hit and completely cashed-out my 401k a couple months ago after getting laid off, rather than rolling it into another easily-confiscated financial instrument.
Our malevolent political class is hell-bent on looting every last penny of real wealth and capital out of our country, and one day middle-class America will wake up in a devastated, burnt-out shell of a country and wonder what the hell happened.
I don’t have much in my 401 K. I had to cash it all out to live in 2000 due to divorce related events. However, to show that the Lord works in mysterious ways, I had to cash it out one month before the crash. :)
Now I have only four years of buildup. There is just not that much there.
What most people don’t know is that as stiff as the penalty is for early withdrawal, once you reach a certain age the penalty is far worse for not pulling out the minimum. And if you do pull out over the minimum you take a tax bracket hit.
The ONLY thing good about 401K’s is the matching funds. Without that, I would not participate with a single dime.
“Once our government finally realizes its own inevitable Greek-style funding crisis and 100% of Federal revenues are being consumed by debt service”
Debt service will skyrocket once the short-term interest rates the feds are using to carry most of their debt goes up with the inevitable inflation.
Interest alone could be over 1/2 of all federal expenditures in the possible situation.
They will have no choice but to confiscate.
i turn 59 1/2 in 8 months and hope it is not too late by then.