Not trying to make a tread for specific financial advice as much as I'm am curious about what people are doing or considering doing with their current investments.
I for one am thinking about cashing out a 401k I have. I'm not currently contributing because I'm between careers as a result of moving my family out of the pits of hell (westtern WA Seattle area). As part of the move we faired very well taking advantage of the inflated housing market and are debt free so we can hold over while I find a new career.
Since the Friday banking fiasco, I have already lost 4k in my 401k! 3 friggin' days! Instead of watching my investment tank, I'd rather take the early withdrawal hit and hold cash and a fair amount of bullion.
I'm just a normal working man and really don't know much about investments. To me it seems right now it would be wiser to hold your assets in something tangible rather than watch my "money" on a computer screen rapidly disintegrate.
You only "lose" money if you cash it out. You still have the same #s of shares....the economy will rebound...
Which is why I cashed out my 401k when I heard about those Fed people selling off their stocks in late '21 at the top of the market. I'm not gaining much in a money market but at least I avoided the 20% dive.
You'll never make enough to make up for the penalty and high tax rate you made for cashing it out early...
Me? I'm doing nothing in response to this.
Panic-acting with anything financial never ends well. Do something only after you thought about it through, and not during a crisis like this, and do it with a calm mind.
I am under a wait-72-hour rule on this piece of news, and I might wait longer because the fog-of-war that surrounds this crisis at the moment is still thick.
Real property, durable goods, monetary metals, stash of cash, food, ammo.
Just prepare yourself for the extreme penalty you pay for early 401k cash out. It's bad. Aaargh.
Some people can borrow against their 401 k at 1% interest they pay to themselves.
Do that if you can.
Why not roll it over to a precious metals it's..no penalty
Do you keep the metals?
It would be an ira..so no..But no penalty for switching.Not ideal but better than sitting in stonks
Ira
If you transfer it to an IRA account no penalty or taxes.
I'm buying 8 week T-Bills right now, which at last auction offered 4.937% interest.
Why 8 week? Because the maturity date occurs before X-day (said to be in early June now) at which point the government borrowing limit is reached.
My reasoning is they won't default on any debt before X-day. While 13/17/26 week bills are paying marginally higher interest, I'm not sure how or if they will be redeemed if .gov runs out of borrowing ability.
Of course, other tangible things are important too. You can't eat T-bills.
This is one area where diversity actually makes sense.
Buying a few dozen wood-chippers. kek
❤️😂👍
Holding mine in my 401k. It will eventually turn around, I’m not selling at a low price. I went thru the 2008 crash and it also did come back up. If you know it’s gonna crash and you sell before it goes down, you will do better than someone who sells after it crashes. One thing I read is you only lose money when you sell. If you have 100 shares and don’t sell, you still have 100 shares. It may bounce around and it may take awhile to recover. Selling now will also give you more taxes.
And that's what we did post 2008. I know none of us have a crystal ball but after the past few years I'm not so sure the stock market as we [think we]] know it will recover similarly as the past downturns..
Fren, where did you learn about this secret Fed meeting?
3/12/23 SVB fallout: Fed calls emergency meeting tomorrow https://www.livemint.com/news/world/svb-fallout-fed-calls-emergency-meeting-on-monday-11678593550469.html
thank you, fren, I knew about that one. Frankenglock wrote there was a meeting today, so that's what i was wondering about.
I found it, it's in the press release
https://home.treasury.gov/news/press-releases/jy1337
ok thx
Well just bc of the things I’ve heard about xrp I went ahead and bought $50 worth today and $25 of xlm. We have decided to leave our 401k alone. We have some cash in the bank and some silver stashed, the cash in the bank is for a tax delinquent property we will either bid on soon and own or the cash will buy silver. Real estate Is better in my opinion. The house is a tear down but the 2 car garage is solid and the land and garage will be sold to our daughter to build a new house on. So we will profit a bit but also have our daughter nearby on land adjacent to what we have now. (Don’t think big land think village lots and small modest homes).
I still have hope for a jubilee and the return of interest paid. I haven’t used any credit cards for over 20 years and have no debt except monthly bills. Modest but sensible.
That is the million dollar question. If you sell now, you are taxed. I lost $84,000 in 2008 and never got it back. In 2011 it was said another crash was coming, so we took out what was remaining and remodeled our kitchen. This was an account I contributed to with matching from my employer. I still had a pension. Now the question is how safe are those, if the stock market dives. If you take money out, put it in the bank and the bank goes under, you lose. Or if it is temporarily in the bank, amounts over $5,000 need approval for withdrawl and that can take 4-5 days, plenty of time for something to happen. Banks, stock markets are not our friends.
They will take such a high penalty - don't do that. Just leave it there and ride it out.
I stopped contributing and transferred all my investment accounts to the holding fund within each account the day MSM declared Biden president knowing this day would come. Yeah I lost out on a couple years of investment growth, but I used that extra cash to pay off two properties. But I didn't sell low and also didn't cash out. If you can sell at the right time, the holding tank in the account worked well for me.
Thanks. This sounds like a smart way to go.
My 401k doesn't have a cash reserve so I moved it all to a stable value fund to temporarily try to preserve what little is left, lol. Takes a day so we'll see how much it nosedives in that time. Good luck!
On it! The chickens at least! 🤣
Boozy broth! I think you're onto something...
Lol
Sold my mutual funds last year. Kept money in IRA account so no penalty/taxes. Been buying CDs.
Can it be filled over into gold and silver IRA?
Another great option. We're looking into it 🤞
I look forward to hearing about it.
I wouldn't cash out, I'd wait it out, except in your position you can roll it to an IRA, which I would do. That gives you the ability to pick among so many more choices, as tempered by the times to avoid risk.