They're keeping a lot of us tied down by controlling retirement savings. I know the market is shit right now, but it would send a big message if a bunch of Americans pulled money out of 401K-type retirement plans. My wife and I cashed in my 401K a couple months ago and paid off our home loan 8 years early. Obviously there will be a penalty for the early withdrawal but we're also going to save tens of thousands on interest payments on our home loan so I'm hoping we're close to breaking even on the transaction. We've begun to invest our monthly mortgage payment into ethical investments that we choose, which feels great.
It's possible they're tanking markets on purpose to keep people from cashing out of the system. They're hoping they can pull their Great Reset shenanigans and nobody will touch their money because we've been conditioned to ride out the lows. These 401K plans give big wads of our cash to the people who don't give a damn about us. Think about taking some of that control away from them.
Pulling your 401 for many people will cost them close to 40% of the money and in many instances that is the difference between retiring and working for the rest of your life.
The rules were set up to fuck the little guy, and keep him locked in their system.
What needs to happen is the personal income tax needs to be stopped, and the IRS needs to be eliminated. Then people can do with their own money what they want. In fact for many they wouldn't need their damned 401K system.
Spot on!
My understanding is you have to pay the taxes when you take it out during retirement so you don't actually lose as much as they want you to think by taking it out early. Pay the taxes now or pay them later. I think there is a 10% early penalty and it is likely to push us into a higher tax bracket for this year too. We figured it would save us around $50K interest on our mortgage over the next 8 years so I think it made sense for us.
If you have a substantial sum in your retirement the graduated income tax will put the highest burden on a large portion of that money. I haven't kept up to date but the highest income percentage used to be 38%. That is a lot of money to lose. For most people it would be devastating to lose that much of their retirement.
The folks, even those with enough money to retire early, are screwed by the IRS rules for an extra 10% if they try to take their money before 59 1/2. This system is set up to lock down working people. The rich don't rely on 401Ks.
The IRS and (((their))) system should be scrapped. If you could get the monkey off the back of the US citizens, and teach something worth while in our education systems and bring back decent paying jobs you might be able to gradually eliminate Social Security in the future. Social Security is just another means to control the people by doling out small portions of the money you stole from them.
I'm with you on defunding the IRS and I agree that Social Security is a joke system. When has the federal government ever put together a program that actually works? Social Security, medicare, 401K. They ruin everything they touch.
Until something changes, my retirement plan is something akin to a Mad Max societal-collapse scenario.
Yeah, I've got some of that going on too. Running out of places to store canned goods and ammunition.
Holding cash is like cradling ice in your hands. Goot you cashed out some but the 11% inflation rate means if you are not getting any return you are losing some. Instead of pulling out, reallocate.
We used the money to pay off our home mortgage. Now we use the money that was going to our mortgage each month to invest in whatever we want. Bought some shares of Rumble recently.
You put it to good use, paying off the home is huge!
This is the way. Voluntary exit from the plantation.
You guys are making it to retirement?
That's another great point. Who's says any of us are going to make it to retirement, or they'll let us keep anything we've saved that long?
I hear ya. I went down with pneumonia and then a collapsed lung last year. A couple months down to recoup but then back into the merciless manufacturing work with no expectation of anyone taking it easy on me. There's no way out. Work til you die. And now the disheartening news that we are pretty much guaranteed 2 more years of Biden and "We caught them all" doesnt seem to mean anything.
Invest in commodities, such as groceries, supplies, defense, and then PMs if there's money left over. Pay off all debt, especially credit cards and any other debt that the interest can change on.
You'll be surprised at how much you can pack away once you get rid of debt. Also quit spending so much money on entertainment, vacations, restaurants, and bad habits. I haven't been on vacation or to a movie in years. I don't drink or smoke or use drugs, and I only eat in locally owned restaurants unless I have a really good coupon. We have no TV, so there's no cable or satellite bill. I can get all the news, information, and entertainment I want on the internet.
I was able to just walk away from work (went Galt) almost 20 years ago. Now my only work is yard work and a little computer work now and then. If you need more money, multiple side hustles are the way to go. I'd have a hard time listing all my different income streams right now. Many are small, but they add up.
My wife and I had retirement accounts almost 20 years ago, but we cashed out and spent the money on real assets, and repairs and upgrades to real assets.