Comments on: Should You Cash Out Your 401k?

By: -> Ask The CERTIFIED FINANCIAL PLANNER™: Inheritances And 401ks | Bible Money Matters

Tue, 09 Jun 2009 18:22:15 +0000

[...] be losing an opportunity to recuperate our losses” is right on. That is the absolute truth. Cashing out your 401k and running the T-bills will not get you back to par. The only way to potentially get back what you [...]

By: * Weekly Highlights: January 29, 2009

* Weekly Highlights: January 29, 2009 — Wed, 08 Apr 2009 02:01:46 +0000

[...] — I haven’t made any list for a long time, but here is a good one on making extra money.Should You Cash Out Your 401k? at Good Financial Cents — Here’s another take at explaining why you should not cash out [...]

By: Rich Life Carnival #30 | Rich Life Equals Better Life

Rich Life Carnival #30 | Rich Life Equals Better Life — Tue, 07 Apr 2009 16:46:54 +0000

[...] Rose presents Should You Cash Out Your 401k? posted at Jeff Rose, saying, “Cashing out your 401k might be tempting, but don’t do [...]

By: Jeff Rose

Jeff Rose — Fri, 06 Mar 2009 03:48:38 +0000

@ Matt N. Keep in mind that it’s all relative on a few things. 1. Where are you at in your life 2. Can you stand it emotionally. I’ve had clients that are literally sick from the whole situation. Your emotional and physical health is more important than “hanging in there” and I would never encourage someone like that to stick it through.

I’m not sure on what stage you are in your life, but I challenge you with this. If you do cash out now, then what’s the next step?

By: MattN

MattN — Fri, 06 Mar 2009 01:06:13 +0000

I understand the premise of “hanging in there.” But for how long? Rule of thumb with stocks is to bail after loosing 20%. Why is that rule different a 401k? I know “conventional wisdom” got us all into this mess. Why should I follow it and stay in? I think I should take my lumps and walk away.

By: Daneen

Daneen — Sun, 22 Feb 2009 22:54:03 +0000

But what if—my current value is only $16,000? And I’m 44. And I could pay off my credit cards, freeing up $500 per month to put in my Roth (or just in the mattress for a while)? My only other debt is my house payment. I bought that last year, so no equity here and value slashed to half. I’m wondering if it wouldn’t be better to take the hit now, get rid of all debt except the mortgage, put those credit card payments into my tiny Roth? The rules have all changed now–we haven’t done THIS before. What do you think? I’m thinking maybe it’s the smarter thing to do for MY BENEFIT in the current climate.

By: Scott

Scott — Fri, 13 Feb 2009 17:16:43 +0000

What about prior to 1948 when FDR simply took peoples savings and began taxation as high as 100% above a 25K earnings? Also, there has been chatter in congress surrounding options for fixing our retirement plans and Social Security. One option that was recommended was taking all of our retirement plans under govt control and infusing the money into social security or a new plan that would be created as a welfare strategy for us after retirement age.
Not from an economist standpoint and obviously these ideas are only scary when viewed against the current strategies under the Obama administration and the obvious love for FDR’s public spending and corporate controls. But unfortunately prosperity in the ways we have seen in the past only holds true if we are at least partly capitalist as a society. If we become primarily socialist all of your metrics since 1948 are thrown out the window and we have to look at different types of economies like europe for likely future outcomes.
For what it is worth I am 34 and had over $170K in my retirement last year, now I have under $60K, painful is an uderstatement, I would have actually done better putting the money in a mattress. Two things are scaring me most the bailout packages from Bush and Obama and the fact that last september there was a mass electronic exodus of over $550B in one hour from the US money market accounts that cannot be traced. When this happened they closed down all banks because all world economies would have failed within 24 hours (this info came from a PA congressman in an interview). We have never seen times like these and the government is not considering the inherent benefits of capitalism, this level of spending by the government and corporate control has never been seen before in the US to my knowledge. It is more than FDR even.

By: Brittany Bell

Brittany Bell — Thu, 29 Jan 2009 15:00:08 +0000

Such a great job, but it must be hard living with a wife who’s blog is SOOOOOO MUCH BETTER!!!

hehe..

Brittany Bell’s last blog post..Happy Wednesday

By: Katy

Katy — Thu, 29 Jan 2009 03:45:39 +0000

Awesome money news here! I wish I could enjoy this kind of stuff, but it seriously sends me way over the edge. Just wanted to let you know that your wife has an awesome blog, a little better than yours. Sorry guy, it’s just how things go down here. …whatever that means?!?
You’re blog is great…

By: Kelly

Kelly — Wed, 28 Jan 2009 21:23:31 +0000

Wow, thanks for all the great tips! But, I must say...your blog is cool but your wife's blog is better! (Sorry...doctor's orders!) Have a great day! Kelly’s last blog post..Groovy Give Away!