Honest opinion needed about 401Ks, IRAs

If you do anything and your plan allows it, take out a loan from your 401K and stash some of it and maybe buy silver or gold with some of it.

depends on your age cause of the penalty. im under 59 1/2, so im letting it ride and am making about 6%.

Thanks for your response ...

I'm 46 and unemployed at this point. I had 60K in 2008, just recovered to maybe 25K. After taxes, penalties I'm thinking I may about 40% left to do something ....

The other day when the First Bank of Italia was withholding customer funds, it really struck home that may be a reality world wide in the very near future. If that in fact is the case, I'm assuming any money I could collect from my investments now may be better in tangible saving rather than the current fiat currency.

As much as I'd love for someone to say, "just hang in there, it'll get better", I'm not sure I'd believe it anyway.

sorry bout your situation. just be careful if you do withdrawal cause it could bump you into a higher bracket and you may owe next year.

im just gonna stay put and see how it all plays out. im rather diversified and can sell quickly if things go down hill.

Ohhhh don't be sorry, I'm one of millions....

You asked for an honest opinion...

As nice as I can put this, if you can't even pay off a credit card bill with what you have in your retirement account you have bigger problems to worry about. Seriously, get out from under that debt first.

If your retirement account is not that big simply because you are young and haven't been contributing for very long, just suspend your contributions and use that extra money for preps and debt payment. If nothing happens, you can go back to funding that retirement later. If the worst happens and you cash out your retirement to not finish paying off a credit card? You will have lost the money just the same as if a Rothschild knocked in your front door with an empty big money bag and club wielding goon.

*edit*
Just read your age and approximate amount in the fund. We are similar age, but my IRA bounced back more, we just paid off the house, cars, and haven't held big card balances since we let them explode in our early 30's and got them paid off.

I am letting mine ride for now but not contributing. The only reason I haven't cashed it out is because it is just big enough to worry about but not big enough to really do something with. To buy the kind of land I would want to bug out to would be more than I have which would mean anothe mortgage and I'm just not going there. So, it's a gamble that if the good Lord tarries and I am still here in 20 years, that compounding interest will mean a liveable nest egg.

Last Edited by Resister on 06/15/2012 01:55 PM

Oh, just caught that you are unmployeed too. Sorry to hear that. If you are married and your spouse isn't employeed, you might be able to cash out your 401k under a hardship exception without penalties, but you will still have to pay the taxes on it.

best of luck

Of course you're right, however I never thought I would be unemployed for as long as I have.

Living (and owning a house) in a rural area, a job to make it worth the car maintenance would be at the very least 120 miles a day.

Unfortunately, these are the times that 2 income bills, become one income debt.

We're still plugging along just the same ... paid off the car, still have a mortgage but have 75% equity,pay double the minimum payment of the CC each month, and outrageous NYS local, school and state taxes are all paid on time and in order.

... and like you said, my retirement may not be a lot to lose, but a lot to lose (and all I've got).

We are not desperate yet, just looking to eliminate some liabilities while we can.