401K Withdrawal!!!

A

Agent86

"Would You Believe..."
Joined
Jul 29, 2007
I'm considering just taking out $$$ from my 401K! Has anyone looked at their Year to Date Lately?? Gosh, I'm down almost 12%!!!!! Thousands, Thousands of Dollars lost!!!! Go$H DARN IT!

I'm just going to Withdraw Money- Screw it! I'm good, and will be good later on! I don't want any more loss that I can't help. I'll just pay the fines now, who the hell cares. What happens if it goes down to ZERO!?? Then what happens?

I'm calling Fidelity- No need for Hardship Withdrawal. My Company allows a withdrawal minus, state and local taxes, penalty fee, and next tax year 10% penalty fee- that's roughly around 40%! Who cares though. I'm not taking a loan, it's my money anyways, and I don't need to pay myself back at this moment.

Who else on this board has done this? Anyone? I'm curious.
 
You don't lose the money until you take it out. I have been moving all of my 401K money into certain domestic automakers/suppliers and some bigger movers in the IT world. There will be a few bumps but, in the end I'll end up with more money. Unless you're broke, leave it in.
 
Maybe readjust the way it is invested? Get with your administraitor and see why you are losing money ASAP. You'll pay taxes and fees on it the minute you withdraw it. Even if it's only for one day. I remember one year mine dipped pretty bad. But than the next year was a record year on returns so it evened out. I feel like a bad American. Most of mine is invested overseas.:frown:
 
Don't do it unless you are starving or going homeless, you will thank yourself when you're older. The economy goes up and down, I don't know your age but if you are under 40, you have a lot of time on your side to make back the losses and many gains.
 
I don't think it's wise to do that. After your penalty fees, you will also get hit by Uncle Sam since you now have to claim the proceeds as income. This may raise your tax bracket.

If you are worried, why don't you consider rolling it over into a traditional IRA. By doing so, you have more selections to invest your money. Your 401k selections, I'm assuming, are limited based on what your employer have as selections? In a traditional IRA, you can invest in whatever you like. My opinion is that right now, we are in a slump. Take advantage of the low prices for both stocks & funds. The only direction from here is up!
 
Just run the numbers through a retirement calculator, that's enough to keep the money in. Mine is 6.5Million@ 65 years old if I don't take any out and have 10% return while contributing every month. Makes me want to quit my job just so I can roll more into the IRA rather than this stupid 401K I have been dumping into.
 
I was up 12% for the year from January till the end of may. Down 10% since June, but up 1% yesterday. Ride it out. For the last 50 years the NYSE has returned 13% on average. I had a 120% return one year in the late 90s during the .com boom. Then it was flat for 2 years.
 
Reminds me of those commercials on TV.. " ITS MY MONEY AND I NEED IT NOW"!!!!


So your a 37 year old capitol investor wanting to take 1/2 of your 401K money out?

Have you been in the plan long enough to be 100% vested?


Straight from my troweprice account

Plan loans:
You can take a loan from your vested account balance. The minimum loan amount you can borrow is $1,000. The maximum you may borrow is the smaller of 50% of your vested account balance OR $50,000 minus your highest outstanding loan balance (a total of all your plan loans) from the preceding 12 months. You may not take more than two loans at a time. Your loan, plus interest, must be paid within five years, except for primary residence loans, which must be repaid in 30 years. If you leave the company, you must repay your loan in full; otherwise, the outstanding balance will be considered a distribution (see Withdrawals below
 
i cashed one out...lost 50% due to taxes and fees, it was for a job i no longer have, and it wasn't worth the paperwork to switch it to my new one at my current employer....i would have lost 35% anyways due to not being 100% vested....but since i never plan to retire......
 
I don't even look at it. The market goes up and down. I could pay someone to move it around but I figure it will all sort itself out before I retire. Taking money out now is a guaranteed loss. Keeping it in you have a possibility of recovering.

Jim
 
If it is loss you are worried about, why not move your money into a lower risk catagory. Most plans offer a level of risk which is equal to about the gain you will see, zero.

Basic finance theory, risk vs reward.

Usually these catagories of risk are highly vested in cash, bonds, goverment securities, or some other very low yielding investment. The downside is barely enough gain to keep pace with inflation, the upside is a temporary holding point for your money that is safe from extreme market fluctuations, as well as not giving up a ton on fees and penalties. I have seen some guys cash out that I prepare taxes for, and they took a beating. Could have just moved the money around and not lost anything.
 
I'm Withdrawing My Money and Going to Enjoy it! Not a LOAN. A WithDrawal.

Keep Saving every Penny all of you! Good For You! But, What happens if the Stock Market Crashes and you end up with $0.0 ????
"Oh, No that could Never Happen!!!" OK, Either Could you imagine $4.10 Regular Unleaded in 1 YEAR Either!??

Screw That!

I'm Going to Enjoy 20k Taken out of My 401K Investment! It's Not a Lot! But it's my Statement.

Why worry about it? I'm going to Enjoy it. I know there's other's who are feeling the same way as myself, and have enough money in your nest egg, not to worry about a little bit of money given back now.

I'm Tired of Gas Prices Soaring so Fast
I'm Tired of our Stock Market Lately
I'm Tired of Corporate Greed, including Major Banking Instututions Now
I'm Tired of my 401K going so negative Lately! I'm taking out Some too now!
I'm Tired of People who are so Worried about when they Retire! Whaaaaa!!
I'm Tired of Paying so much more for Groceries Lately!! What the Hell!
I'm Tired of Paying $7.00 for a Large PopCorn at the Movies the Other Day!
I'm Tired of EVERYTHING Outsourced and Made in China! (Including most Turbobuick Parts now)
I'm Tired of People Trying to act like they're not affected by the Economy at all. (George Bush Included)
I'm tired of WAR- However, we need War to Keep us Safe and Free.
I'm Tired of Jesse Jackson's Mouth! (Now he said the "N" Word Too??)
I'm Tired of Iran! (They basically control the Middle East when we leave Iraq)

I'm Buying a couple of simple upgrades for my GN, a Nice Pistol, and a small Gift for my Wife and Kids-

The rest of the $$ is going to be put into my Deposit Box at my Bank!!
The Blob said:
Finance-wise that would be THE stupidest thing you could do.

DO NOT touch your 401K until you retire... period... end of story... no exceptions.
Click to expand...
 
why dont you put it into the garenteed funds. You dont get much for returns but it will keep growing and not falling then when the stocks pick up then move it into different stocks and save yourself the problems latter just my .02 cents . at the rate that it is going i will only get ssi for 1 year after i get to retire and they will be belly up. But like you said it is your money so do what you feel is right. We all here to try to help but not tell you what to do.
 
Agent86 said:
The rest of the $$ is going to be put into my Deposit Box at my Bank!!
Click to expand...

My grandpa said something back in the day along those lines, bonds are safe and guaranteed, might as well stuff it under your matress so you know your not going to lose it. If you dont believe in the all mighty dollar/government note, you might as well leave the country.

I also learned some great things from him, he also said, if you wanted to borrow my playboy, dont ask!

I dont believe in "what happens if", especially when it comes to money, you need to ride it out and fully understand that if your not happy how your doing your finances, then maybe you should move your 401k into something more secure. Blowing your retirement on a few upgrades for your car, a gun, and a few materialistic objects for the family is pathetic.

Quit your job and become a hippy.
 
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