I'm only 33 and can at least figure out to take advantage of the current economic situation in the US. Forget taking money out of the market, put more in it!!!! You will get more for your dollar in a few years. Make sure your state doesn't tax cash on hand including what is in bank deposit boxes, I know for a fact that they do in KY. Just think, a few small items you can buy now would really equate to a car or even a house when you retire. Give it some thought before you take it out, there is no sending the money back.
401K Withdrawal!!!
- Thread starter Agent86
- Start date
"This is the best country in the World, of which I served in the Military proudly- so, don't miscon-screw! misconsrue, I meant."
If you dont believe in the all mighty dollar/government note, you might as well leave the country.
"Oh, really now, you don't believe "what happens if" kind of person, heh? That sounds like a personal issue to me. If you have some "knock or pinging" do you still get on your Turbobuick and get the turbo boost up?" No, you start looking at your scanmaster and try and figure out if you're going to end up breaking or hurting your car, right? And fixing it so you can enjoy it! Right?
Same with money- I'm just riding the waves of the market, and going to enjoy a few dollars now, even if it's taxed to sh!t for now. After all, I am not broke, and I don't feel like taking a loan to "pay back myself with interest." I won't hurt my tax bracket as I'm in still the 25% tile, (between 65k to 120k) and won't pay more than what the IRS will want from me.
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.
Blowing $1500.00 isn't going to hurt me- It's going to be fun actually. :biggrin: And throwing the rest of the cash into the bank, somewhere safe, is just going to be fun. Don't you love going to the bank and sometimes holding a big wad of $100 bills? I do!!! It's fun! It's Motivating!
"I'd definitely do this if I win the Lotto-" I'd also donate a nice crisp $100 bill to you, to put into your 401k or other investment from me. I promise to if I win..."
Quit your job and become a hippy.
If you dont believe in the all mighty dollar/government note, you might as well leave the country.
"Oh, really now, you don't believe "what happens if" kind of person, heh? That sounds like a personal issue to me. If you have some "knock or pinging" do you still get on your Turbobuick and get the turbo boost up?" No, you start looking at your scanmaster and try and figure out if you're going to end up breaking or hurting your car, right? And fixing it so you can enjoy it! Right?
Same with money- I'm just riding the waves of the market, and going to enjoy a few dollars now, even if it's taxed to sh!t for now. After all, I am not broke, and I don't feel like taking a loan to "pay back myself with interest." I won't hurt my tax bracket as I'm in still the 25% tile, (between 65k to 120k) and won't pay more than what the IRS will want from me.
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.
Blowing $1500.00 isn't going to hurt me- It's going to be fun actually. :biggrin: And throwing the rest of the cash into the bank, somewhere safe, is just going to be fun. Don't you love going to the bank and sometimes holding a big wad of $100 bills? I do!!! It's fun! It's Motivating!
"I'd definitely do this if I win the Lotto-" I'd also donate a nice crisp $100 bill to you, to put into your 401k or other investment from me. I promise to if I win..."
Quit your job and become a hippy.
I cashed out an old 401K that I forgot I had recently. It was just $1,100 but it was $1,100 that I forgot I had. I ended up seeing $800 of it after taxes and penalties and it bought me part of my 86-7 conversion. I looked at the progress over the years and it was steadily losing money so I figured why not.
But...... I have 20 percent of my gross income going in to my current 401K and the company matches a good portion of that. I started it late at the age of 31 so I have a lot of lost ground to make up if I want to retire before 70.
But...... I have 20 percent of my gross income going in to my current 401K and the company matches a good portion of that. I started it late at the age of 31 so I have a lot of lost ground to make up if I want to retire before 70.
If you think the loss for the year is bad, wait till you pay the 10% penalty, plus the federal tax on the money you withdraw. Investing money means exactly that, Investing it for the long term. I saw the EXACT same thing happening in the 2000 .com bust. People started getting scared and selling their funds. Guess what?they got scalped. If you invest in appropriate funds that invest in sound companies, you do not need to worry, you will come out OK in the long term. But like someone else said, it's your money, so go bury it in the woods if you want.
CaptainInsane-O
Member
- Joined
- Jun 13, 2006
BINGO, Best answer on this thread! Just look at the history of the market, it has it's ups & downs but the definate long term trend is UP, you've just got to have some patience. Since it seems you're dead set on doing this, at least take that cash & put it into a money market or bond so it's doing a little work (earning interest) for you; all it's going to do in a deposit box is collect a little dust...
Also, keep in mind the more you have in an account, the harder it works for you esp in a 401K with an employer match, etc.. involved.
Listen guys- calm down. I'm not emptying it out, and realize that it's somewhat a loss- but I'm down thousands anways, and know that it's a loss either way.
It will come back. I need to re-evaluate my 401k and put everything into a totally TAX FREE Roth for when I retire anyways-
Most people have their investments in Traditional 401k's and that's only TAX DEFERRED! So, have a look and make sure. What's the difference, if you don't pay now, but Pay Later Anyways??? They won't collect a 10% early withdrawal fee, but they'll Tax you at the current Rate Anyways, Later when you retire!
I really appreciate it guys for your comments. Trust me, I know you guys are smart, and just being helpful. Thanks a lot for your comments...
It will come back. I need to re-evaluate my 401k and put everything into a totally TAX FREE Roth for when I retire anyways-
Most people have their investments in Traditional 401k's and that's only TAX DEFERRED! So, have a look and make sure. What's the difference, if you don't pay now, but Pay Later Anyways???
They won't collect a 10% early withdrawal fee, but they'll Tax you at the current Rate Anyways, Later when you retire! I really appreciate it guys for your comments. Trust me, I know you guys are smart, and just being helpful. Thanks a lot for your comments...
As bad as it seem right now, this is really the best time to invest. You are getting bargin prices. (cost average). Time and interest is the key.
$200.00 a month for 40 years = 2.4 million age 25 to 65.
Wait 10 years or pull money in and out.
Then it takes $600.00 a month for 30 years for less money. = 2.1 million so time makes a big difference. I will be worth in in the long run. Hang in there stick with it you will thank yourself later on.
Investing Calculator
$200.00 a month for 40 years = 2.4 million age 25 to 65.
Wait 10 years or pull money in and out.
Then it takes $600.00 a month for 30 years for less money. = 2.1 million so time makes a big difference. I will be worth in in the long run. Hang in there stick with it you will thank yourself later on.
Investing Calculator
GNBRETT
Pelennor Fields
- Joined
- Feb 8, 2004
Listen guys- calm down. I'm not emptying it out, and realize that it's somewhat a loss- but I'm down thousands anways, and know that it's a loss either way.
It will come back. I need to re-evaluate my 401k and put everything into a totally TAX FREE Roth for when I retire anyways-
Most people have their investments in Traditional 401k's and that's only TAX DEFERRED! So, have a look and make sure. What's the difference, if you don't pay now, but Pay Later Anyways???
I really appreciate it guys for your comments. Trust me, I know you guys are smart, and just being helpful. Thanks a lot for your comments...
LEAVE IT ALONE! Your buying shares at a reduced price now because they are worth less. You only loose when you sell or withdraw. Almost all funds are down now. Your not in any different situation then anyone else. I would hang tight.
If you borrow against it you can pay it back within a year I think. No one ever pays it back so I would strongly advise against that.
Now wait a min. i do have 2 loans on mine and im paying them back+intrest to,so im not everyone here, and depending on the company you work for and your invester most will let you take 5 years to pay back and have it taken out of your pay each week:biggrin:
GNBRETT
Pelennor Fields
- Joined
- Feb 8, 2004
Ok, I stand corrected. Most everyone.
I would say 99% of the people that borrow against their 401k will not pay it back at any time. When you calculate compounding interest on withdrawn money over time it's a really poor decision to withdraw.
Not only does one pay taxes on the money they have withdrawn but they also need to be report the withdrawn money as income on your tax return. So you get wacked twice.
90% of the population has less then $100K in the bank when they retire. Then again most people are complete idiots when it comes to money which is the reason most people spend their life in debt and can never retire.
A fool and his money are soon parted.
I have always heard its not good to take out a loan too. For the above reasons, mainly not paying the money back. I heard another good reason the other day that explained why its not a good idea. The money you are putting in there now is tax defered, plus should be put in pre tax so, this money comes off of your gross income. This keeps your tax rate lower for now. If you borrow money, you are paying back with taxed money plus interest, then will be taxed again when you retire.
The down side to this is, if you do what these guys tell you, work hard save your money all your life, and don't waste it. You will become one of the evil rich people you here so much about, and get taxed again.
The down side to this is, if you do what these guys tell you, work hard save your money all your life, and don't waste it. You will become one of the evil rich people you here so much about, and get taxed again.
lloyd smale
New Member
- Joined
- Nov 18, 2007
I cashed mine out. Im 51 and hurt my back at work and am on social security disabiltiy. I cashed mine took the penalty and havent regretted it. I probably lost 30 percent if you figure what i would have paid to cash it out at the proper age but since ive cashed it out other guys at work have lost 13 percent of theres in the crappy stock market anyway. If a guy cashed it out and bought a gnx for 50 grand and stored it till retirement hed make more money then hed make in the stock market right now. Id bet just moving mine even with the loss to CDs that i make out in the long run.
Double Up.
Market probably has another 10 percent to correct itself. Double UP! I am putting twice as much in now to offset what I bought high.
For instance, if I buy 1000 shares of UPS stock at 70 dollars, I am buying 2000 at 60 dollars now. Neat dividend too. Joe
Market probably has another 10 percent to correct itself. Double UP! I am putting twice as much in now to offset what I bought high.
For instance, if I buy 1000 shares of UPS stock at 70 dollars, I am buying 2000 at 60 dollars now. Neat dividend too. Joe
Here you go: item # 5 on the "stupid" list
5 stupid 'fixes' for money woes - MSN Money
5 stupid 'fixes' for money woes - MSN Money
GNBRETT
Pelennor Fields
- Joined
- Feb 8, 2004
Wrong! I guy taking out a loan against his 401k to buy a GNX would not even come remotely close to making the same money in compounding interest from the market vs. value increase in a GNX over time. The purchase of a GNX is not an investment by any stretch of anyones imagination compared to fund investment. Not to mention, you won't find a GNX for $50k. A car is one of the worst long term investments one could ever make.
Other people at your job have not lost anything until they sell. A 13% dip is nothing. Almost all funds are down this year. That's what the market does. Now they are paying 13% less for stocks which will go up when the market rebounds. That's how people make money.
People panic and the market suffers along with their own investments.
Your share price in whatever you are investing in is now less. As long as ones contribution remains the same they will be able to buy more stocks because they now cost less.
Over the last 100 years the market has averaged about an 11% return. Some years your down, some your up. But over time you gain, not loose.
People always fail to take into consideration inflation. How much was gas 5 years ago? It has more then doubled in some areas today. That's just gas. Where do you think it will be 10 years from now? Everything goes up and if you are not investing your money along the way consistently you will be miserable and broke when you older. Or you will be forced to work till your 80.
The majority of people will be retired as long as they worked. Not all, but most will be retired for 20-30 years before death which is about as long as the average person works. Some more, some less.
Btw, a CD will not yeild the same return as the market over time. Another foolish decision people make. They get lured in by 4%,5% or maybe 6% gaurenteed return on their money over a couple of years. The market averages almost 11%. That's double what a CD will give you over time.
People have a hard time seperating their needs from their wants and either buy foolish toys when they are already swimming in debt or they try to outsmart the market.
lloyd smale
New Member
- Joined
- Nov 18, 2007
actually by law i believe they can start sending you notices at a month but cannot take action for 6 months. Thats what the company that does our 401 told me anyway. Luckily i only had about a 1000 dollar balance on a loan i took on mine. As to the stock market doubling soon. By the way i see this country going right now. Id bet sucking toliet water out of a bar bowl that nothing doubling in the next year. Except maybe the price of gas and food.
lloyd smale
New Member
- Joined
- Nov 18, 2007
dont know about the long term either. My boss is a pretty intellegent man and plays the market on his own. He sat and figured two of the workers 401 k profits since weve started one in 1992 and said weve basicaly made nothing and would have been better off to put our money in CDs right from the git go. Im the wrong one to argue facts and figures as im far from a stock broker but i know what my 401 k did over the last 17 years and the stock market has been a joke. Ask any 10 people what they think of there 401k performance over the last 10 years and id bet 9 of them use foul language. I guess i think differntly then alot of people. my home is paid for my kids are grown up and gone. Im 51 years old and sure i may live to be 90 but i also may live to be 52. Im going to enjoy my life and buy the toys i want. Some people get off on how much money they have in the bank and for the most part its there kids that have a smile on there face when they die and the kids start buying the toys dad and ma should have had.
Gary Wells
White turbo Buick trailer park trash
- Joined
- Mar 2, 2002
I believe that the rules imposed on 401K plans are imposed by the government, and enforced by the 401K administrator, and not the company. I believe that the requirement regarding paying back any & all loans against the 401K program after leaving the company is a requirement imposed by the government. It also doesn't matter how you leave the company, quit, retire, furlough, fired, laid off, all fall under the same rule/requirement.
