lloyd smale
New Member
- Joined
- Nov 18, 2007
Im sure your right gary as all they did when i called them is read the rules right as the goverment wrote them.
401K Withdrawal!!!
- Thread starter Agent86
- Start date
Yaaay, someone who's honest and with no regrets! And you know what- you're right! You'd get better yield with a GNX than with a Crappy 401k that's lost approximately 11-15% anyways. Has anybody checked their 401k lately? Most people are losing money- look at your Year to Date. I'm down 11.8% and my co-worker is down 15%!!! That SUCKS. But, yeah you would say it's all relative. To a Degree, yes it is. But there is an end result. LOSS!!! 
Enjoy yourself. Do what you need to do. I'm not saying you shouldn't save or be wise. But, acting too much like a squirrel, doesn't guarantee anything. What if the stock market crashed hard? If it ever tanked due to a stupid war with Iran, or Oil shooting up through the roof, or some terrorism, most people are going to REGRET THEY NEVER TOOK ANYTHING OUT OF THEIR 401k.:biggrin:
IT'S A BIG GAMBLING CASINO is all Stock Investments are anyways- no matter how you want to legitimatley look at it.
Enjoy yourself. Do what you need to do. I'm not saying you shouldn't save or be wise. But, acting too much like a squirrel, doesn't guarantee anything. What if the stock market crashed hard? If it ever tanked due to a stupid war with Iran, or Oil shooting up through the roof, or some terrorism, most people are going to REGRET THEY NEVER TOOK ANYTHING OUT OF THEIR 401k.:biggrin:
IT'S A BIG GAMBLING CASINO is all Stock Investments are anyways- no matter how you want to legitimatley look at it.
BLACK6PACK
1 sec reaction King
- Joined
- May 24, 2001
Taking money out of a 401k is the worst investment strategy known to man. Almost as bad as using a GNX as an investment strategy. Lets see. Buy a GNX in 1987 for $30k, put it in a bubble and sell it 20 years later for $100k. Put $30k into the stock market in 1987, present value of that would be $245,250.33 at 10% return. Going by the stock markets last 50 years which is around 13% $460,582.43. Yep, a GNX is a good investment. That 20k you take out of your 401k will end up costing you a few hundered thousand dollars. Hope you enjoy it!!!
That 20k you take out of your 401k will end up costing you a few hundered thousand dollars. Hope you enjoy it!!!Eight Reasons To Never Borrow From Your 401(k)
The funny part to this thread is about 20 people have said this is the worst thing you can do, with a ton of links that show its not good. One person has said he did't regret it. There is a reason for this, the hundreds of thousands of people that do regret not saving early or putting into their 401 k are so broke they can't afford to be online much less buy a computer.
The sad part is that people spend more time planing for a two week vacation than they do for their own retirement.
If you still think this is a good idea. I will give you one last tip that may help you in your later years..
"Welcome to Walmart"
Believe me they are not there to meet new people
The funny part to this thread is about 20 people have said this is the worst thing you can do, with a ton of links that show its not good. One person has said he did't regret it. There is a reason for this, the hundreds of thousands of people that do regret not saving early or putting into their 401 k are so broke they can't afford to be online much less buy a computer.
The sad part is that people spend more time planing for a two week vacation than they do for their own retirement.
If you still think this is a good idea. I will give you one last tip that may help you in your later years..
"Welcome to Walmart"
Believe me they are not there to meet new people
GNBRETT
Pelennor Fields
- Joined
- Feb 8, 2004
Taking money out of a 401k is the worst investment strategy known to man. Almost as bad as using a GNX as an investment strategy. Lets see. Buy a GNX in 1987 for $30k, put it in a bubble and sell it 20 years later for $100k. Put $30k into the stock market in 1987, present value of that would be $245,250.33 at 10% return. Going by the stock markets last 50 years which is around 13% $460,582.43. Yep, a GNX is a good investment.
Yep. When people make up their mind to borrow against their 401k there is little one can say to change their mind. People just can't seem to grasp the concept of the ability to now buy more shares when they are worth less. When the market rebounds they now have more money then they would have had if the market had never fluctuated.
Everyone is suceptible to the volitilty of the market. No one is immune. There is always going to be someone somewhere who has lost his shirt in the market.
Subscribe to Morningstar and just about anyone can invest wisely and safely.
Considering only about 30% of the companies in the US have pension plans it is imperative to continue to contribute to your 401k and to leave it alone. How else does one plan on retiring? Without it you simply can't!
I have a pension and I also max my 457 out every year and have for the last 12 years. I have calculated between my pension (Valued at $750k at retirement) and my 457 ($400k or so at retirement) I will live comfortably, certainly not lavishly. Interest on that money will give me about what I make now in regular pay with OT. And I have no kids or college to pay for.
It's quite tempting but incredibly foolish. I really hope people think twice before drawing on their 401k.
Your obviously pretty young, since your complaining about 11.8% loss. It the early 2000's my portfolio took a good 35% loss. Ofcourse I had some Mutal funds that had a 100% gains in 99 as well. This year I have loss -12.1% YTD, but I also have had 18-20% return the last two years as well. It all evens out.
I am relatively young (35) and I don't know about the stock market in early to mid 90's, but I have average over ~12% gain over the last 10 years even with this years loss. Their is no way a CD has out done me in the long term.
I also know people who have slow knee jerk reactions to their 401K. They take their money out after it has lost a ton of money and then are slow to put it back in to more agressive funds and miss all the gains. I only evaluate my 401K once a year or when I think the market is going through a major change.
I am relatively young (35) and I don't know about the stock market in early to mid 90's, but I have average over ~12% gain over the last 10 years even with this years loss. Their is no way a CD has out done me in the long term.
I also know people who have slow knee jerk reactions to their 401K. They take their money out after it has lost a ton of money and then are slow to put it back in to more agressive funds and miss all the gains. I only evaluate my 401K once a year or when I think the market is going through a major change.
BLACK6PACK
1 sec reaction King
- Joined
- May 24, 2001
I'm right there with dgoodhue. I had very little in my 401k in the mid 90s. Late 90s my little amount doubled due to the .com boom. Early 2000s it didn't move or dropped. After that my money grew 4 fold. You have to take the good with the bad. If I had put my money in a CD I'd have about 1/3 I currently do.
lloyd smale
New Member
- Joined
- Nov 18, 2007
dont get me wrong. Im not encoraging any young man to dump his savings on a car or even cash in his retirement savings. What i said is im 51 and had to retire early due to an injury. My home was paid off. My cars and my toys are paid off. I get a good retirement that was not reduced due to my young age because i was hurt on the job. I also get social security disability. I cashed mine in in the lean times when i was fighting the company for my money. I went 5 months without a pay check. What im saying is there are some circumstances where it is the smart thing to do. If a guy needs money why suffer if hes got it. I could have easily reinvested what i didnt spend back into the stock market but right now with the economy the way it is and the world the way it is I feel im much smarter having it somewhere where i can get quick access to it. Just keep in mind all the experts quoteing you those facts and figures and telling you how stupid it is to get out of the stock market are the advisers and brokers that make money off of you. I remember when i started my 401 k they had charts saying how much money a guy would have if he contributed x ammount of dollars at a certain age and my contributions were suppose to bring me about 2 million by retirement, well i had about 300000, a far cry from being a millionair. Hell, there would have been so many millionairs in this country that there wouldnt have been a middle class to do the work. People constantly complain about the rich getting richer and then stick 10 percent of the wages into the stock market. What are you doing? Financing big buissness so a rich man can get richer. I guess i have to wonder also why ANY young man would work for a company that didnt offer a retirement. To me that is more insane then cashing any retirement fund in.
lloyd smale
New Member
- Joined
- Nov 18, 2007
one more closing thought and then ill bow out gracefully. How many rich people do you know that got that way with a 401k. I know none. If i were a young man right now a 401k is the last place id be putting my money. The people who really make money off the stock market are the ones that have the savoy to do it themselves or at least the sense to reasearch well and find a reputable stock broker and pay him to invest your money and even then keeping a close eye on it. 401ks were designed by big bussiness and by a goverment that supports big bussiness. If something goes wrong with the stock market your money is locked in there. You cant take it out. Its a cushion of protection for these big bussinesses. I may be a little cyincal but i think this is one of the biggest cons that has been pulled over the working classes eyes. Like i said just look at who is telling you to never pull your money out. Its people who make money off the stock market and big bussinesses. they want to play with your money. No thanks ill play with my own from here on out.
20k in a 401k Posttaxed, won't yield 460,582.43! As you stated below. Keep dreaming. Is that what the investment fairies have told you?
Taking out 20k and having it taxed roughly around 35%, won't kill me. I have quite a nice sum in my 401k, and I make a good living with a fully company (up to 6% of my salary company match)
It's funny. But I think there's a few of you out there, that are going to call your 401k plan and see if your company allows a withdrawal. I didn't need to take a hardship withdrawal, or a college need withdrawal. I told them the money is needed pleasure. And they didn't ask BOO.
Good for all the Squirrels out there. I'll be well off when I'm 60 years old anyways. But I'm almost 40, and I guess I'm thickheaded. Stupid- No. Just enjoy myself.
I don't recommend people take money out of their 401k in a withdrawal. It's not very smart. Unless you really need the money, or think you may be getting divorced, or just live in the moment. Take a loan if you need to. Pay yourself back with interest. Getting taxed, doubletaxed and penalties isn't fun. But it's also nice, to not have to take a loan too. Loans just suck. If you need to buy a home, you can take a withdrawal. Hardship, and College. But not to go buy a big screen flat TV. Or a Turbo for your GN. That's stupid.
Mine will be spent wisely. Trust me- all 13k of it after it's all said and done. I'm getting back 13 from my 20k... That sucks, but it's life, whatever.
Taking out 20k and having it taxed roughly around 35%, won't kill me. I have quite a nice sum in my 401k, and I make a good living with a fully company (up to 6% of my salary company match)
It's funny. But I think there's a few of you out there, that are going to call your 401k plan and see if your company allows a withdrawal. I didn't need to take a hardship withdrawal, or a college need withdrawal. I told them the money is needed pleasure. And they didn't ask BOO.
Good for all the Squirrels out there. I'll be well off when I'm 60 years old anyways. But I'm almost 40, and I guess I'm thickheaded. Stupid- No. Just enjoy myself.
I don't recommend people take money out of their 401k in a withdrawal. It's not very smart. Unless you really need the money, or think you may be getting divorced, or just live in the moment. Take a loan if you need to. Pay yourself back with interest. Getting taxed, doubletaxed and penalties isn't fun. But it's also nice, to not have to take a loan too. Loans just suck. If you need to buy a home, you can take a withdrawal. Hardship, and College. But not to go buy a big screen flat TV. Or a Turbo for your GN. That's stupid.
Mine will be spent wisely. Trust me- all 13k of it after it's all said and done. I'm getting back 13 from my 20k... That sucks, but it's life, whatever.
Taking money out of a 401k is the worst investment strategy known to man. Almost as bad as using a GNX as an investment strategy. Lets see. Buy a GNX in 1987 for $30k, put it in a bubble and sell it 20 years later for $100k. Put $30k into the stock market in 1987, present value of that would be $245,250.33 at 10% return. Going by the stock markets last 50 years which is around 13% $460,582.43. Yep, a GNX is a good investment.
I went in my 401k last Thursday and I had 562,783.25 in my 401k left. I had 582,783.25, minus the 20k of course.
I won't miss it....
It won't put a doording in my plans for my future. Unless of course the market crashes.
I'm 401k rich, and I make a decent living. People go to Vegas and spend a hell of a lot more money on Gambling than anything else. And they use money they don't have either OR money they have received from their 401k.
Who here has recently retired and has started receiving their 401k? Just want to hear your experience with it. Who has Fidelity?
I won't miss it....
It won't put a doording in my plans for my future. Unless of course the market crashes.
I'm 401k rich, and I make a decent living. People go to Vegas and spend a hell of a lot more money on Gambling than anything else. And they use money they don't have either OR money they have received from their 401k.
Who here has recently retired and has started receiving their 401k? Just want to hear your experience with it. Who has Fidelity?
This would not be a good idea imo. Is their any other options for different funds. I have different options and can move the $ back and forth. There is always something safer when the market sucks. Precious metals and mining companies etc. Pulling the plug now is bad because you cant just throw it all back in if you want.Your limited to 1/3 your pay per pay period. You are in a higher tax bracket now because your income is higher (your not retired). I doubt every fund has dropped. Look at all your options first. But dont forget that once its pulled you cant go back. 40% is a lot to lose imo. The negatives are way too much. Even if it went down 40% this year and gained back ten the next year your still way ahead vs. pulling it.
Taking money out of a 401k is the worst investment strategy known to man. Almost as bad as using a GNX as an investment strategy. Lets see. Buy a GNX in 1987 for $30k, put it in a bubble and sell it 20 years later for $100k. Put $30k into the stock market in 1987, present value of that would be $245,250.33 at 10% return. Going by the stock markets last 50 years which is around 13% $460,582.43. Yep, a GNX is a good investment.
The only worse one i can think of is pulling your Roth IRA contributions. Pulling pre-taxed $ is the craziest thing one could do. F uck everyone else. Im retiring rich.
+1
I don't know... maybe reverse mortgage.. made just for people that didn't... oh well never mind..
I don't know... maybe reverse mortgage.. made just for people that didn't... oh well never mind..
I hear you.
BLACK6PACK
1 sec reaction King
- Joined
- May 24, 2001
You are correct, but you might want to actually read what I wrote. You used a GNX as an example of a good investment. I showed you how you were completely wrong with that. I said $30k not $20k. And yes 30k invested for 20 years will yeild in between $250k-400k.
In your case, if you were to retire at 65, and you said you're 40 that $20k would have netted you between $250k-500k going by the stock markets annual return over the last 50 years of 13% return.
I will admit, you are very 401k rich if you have almost $500k at age 40. You're looking at $4M at 8% in 25 years and $13M at 13% return. You won't miss the $20k much.
lloyd smale
New Member
- Joined
- Nov 18, 2007
you can not project your gains realisticly by looking at the last 50 years. The stock market is totaly differnt then it was just 20 years ago. People made big money in the stock market until these 401ks flooded it and everyone got into it. Anyone that has there entire retirement and retirement savings wrapped up in the stock market is a braver man then me. I hope for your sake there is still social security when you get old enough to retire.
BLACK6PACK
1 sec reaction King
- Joined
- May 24, 2001
I don't quite agree with that. 25 years ago the DJ was around 1000, 5 years ago 6000 and today 12000.
I don't plan on SS being around when I retire.
I don't plan on SS being around when I retire.
John Larkin
Sublime Master of Turbology
- Joined
- May 25, 2001
Lloyd is making some good points. I am not proud of my 401K either. I have adjusted, contributed, and after being wiped out 50% in 2000, I came back 3x as much to present day but I contributed half of that. I do not believe it is as big of a money maker as most would have you believe. Now if you spend 10+ hours a week researching individual stocks and get good at it, I can see someone making 11% annually. I have done better by not spending money than by investing it. Maybe I am just not as smart as most folks but I currently see more benefit from the tax deferral than the investment itself. It is so up and down. Make it, lose it, over and over. I heard we have been in a sideways economy since 1998. I am starting to believe it and at my age (almost 47), I need to get more on top of this stuff before I wake up in 20 years wondering what the hell happened.
