Author Topic: Goodbye 401K  (Read 4327 times)

DevilDoc

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Goodbye 401K
« on: May 17, 2010, 09:20:11 PM »
Look first I dont care, Things are getting a bit to much so I am paying off the med bills from wifes 2 surgeries last yr and secondly, some other things are falling behind intensionally as I catch up on prepping. I am 43 have a 401K and have gotten the letter I wanted from the mortgage company about 2 months of pmts behind. This is intentional sure some may say its falsification.

Well in my opinion it isnt, with the copies of the statements and cash sored away for the delinquent bills well most of them i have submitted a hardship to my 401k company yeah one of the govt banks from the bailout. I stopped giving to it over 1.5 yrs ago why throw good money after bad and my company has changed their contribution times to quarterly after a 12.5% pay cut.

Its not a ton of $$ just about 6 yrs worth of contributions. Lost half of it when things went bad like everyone else. I have faced the facts and I know I will be working until I die retirement is a former american dream mostly and it doesn really bother me. So I am doing the hardship thing paying my crap off keep and using some of the cash I saved incase the hardship doesnt go through. Its my money and it isnt going to be their anyhow in afew months so I may as well put it to good use and now before its gone.

In the words of Jason Bourne "The Books" "Sometimes you create opportunies exploit them fully....."

 

Offline chris

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Re: Goodbye 401K
« Reply #1 on: May 17, 2010, 10:26:03 PM »
The retirement scam sold to the public is coming to an end. Goodbye to bad ideas I say. Investing yourself, in your own production capacity, and retirment is just a continuation of the life your already living. I plan on doing the same thing from 65 to whenever that I plan on doing from 42-65.

DevilDoc

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Re: Goodbye 401K
« Reply #2 on: May 17, 2010, 11:27:30 PM »
i agree 1,000 %

Offline Conductor71

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Re: Goodbye 401K
« Reply #3 on: June 27, 2010, 07:18:27 AM »
I got rid of my 401K over a year ago.  Just cashed it out and paid the taxes and put what little was left into PMs.  My accountant literally said it was the stupidest thing he had ever seen.  I explained that I had heard that at some point the government was going to take everyone's 401Ks and invest them in treasury bonds (or give everyone the illusion of keeping their retirement but making them invest in treasury bonds).  He said that would never happen.  I mentioned I wanted to buy some gold and he said that was another completely stupid thing to do since "why do you want gold?"  "you can get gold anytime".  He must have thought I was totally crazy because as he continued to berate me -- oh and you'll love this -- urge me to get into the stock market, I was smiling from ear to ear.  In his defense, I should say he wasn't being mean, he really just didn't understand why I was doing this.

What was I supposed to do?  Explain I had done research into the fractional reserve banking system or how the Federal Reserve isn't ... well, Federal?  Should I have gone into a long diatribe quoting Bob Chapman, Max Keiser, Peter Schiff, Charles Goyette, Gerald Celente and the great Ron Paul on the subject?  I tried to explain that the FDIC was simply a corporation and could go under (and is projected by some experts to go under later this year) at any time.  But it was obvious he thought I was simply beyond stupid.

I subscribe to Bob Chapman's International Forecaster bi-weekly newsletter and within the last two weeks, he mentioned that his advice would be to start liquidating IRA/retirement and get what they could while they still could.  He had some smart strategies for how to minimize the tax burden too.  He charges for his newsletter so it would be unfair for me to say more but you can do your own research.  Obviously, this only works for folks who have an IRA from a previous job that they rolled over (and therefore have access to) but I thought I'd post it here for other members looking into the 401K issue.

DevilDoc, I'm so sorry you had to go through all these hoops just to take the loan (because I think it stinks you have to take a loan from yourself when it's your own darned money to begin with!) and of course only time will tell if any of us has done the right thing but there is a peace of mind with being prepped and I hope you are finding it.   

Offline ProfessorHex

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Re: Goodbye 401K
« Reply #4 on: June 27, 2010, 02:40:16 PM »
Ya know, all those stories I heard as a kid about depression-era folks putting cash in their mattresses and such?  They have a whole new ring to me these days. 

I liquidated (what was left of) my Roth-IRA due to emergency.  If times ever get better, you bet I won't invest in any form of paper, virtual money.

I had a teacher once who went out of her way to avoid tobacco stocks--for ethical reasons.  Likewise, I intend on avoiding the whole ball of wax.  The way I see it, every penny I have in Wall St. contributes to the delinquency of banksters.

Offline ncjeeper

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Re: Goodbye 401K
« Reply #5 on: June 27, 2010, 10:04:00 PM »
 :popcorn:

Offline donaldj

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Re: Goodbye 401K
« Reply #6 on: June 28, 2010, 07:27:24 AM »
I think it important to diversify your portfolio. While exiting the "system" and having everything in real, tangible wealth sounds great from a prep/survivalist point of view, we have to remember that we all ARE part of the system. We have jobs that pay us in USDs. We buy stuff with those USDs. Our homes, cars, and all our preps are bought with USDs.

So, in my mind, it's wise to retain a presence in the system, in a 401k, as well as have tangible wealth on hand. Remember, if times get tough, or even if they don't.  Not participating in an employer-matching 401k is unwise. Not having multiple venues of savings and financial cushion is also unwise.

I do agree that everyone must gauge their involvement in "the system" for themselves, and would never try to tell people what to do, but my thinking is diversification. If you feel you're over-heavy in a 401k, IRA, or whatever, then start allocating money to precious metals or other goods. It doesn't necessarily mean draining one source of investment (especially at a heavy loss) to achieve it.


As for the financial guy in Conductor71's example, he makes his money off "the system". It's a system he fully believes in and has a vested interest in its workings. For you to totally remove yourself from that system is utterly alien to him, thus his incredulous attitude. 

DevilDoc

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Re: Goodbye 401K
« Reply #7 on: June 29, 2010, 11:23:04 PM »
Doesnt matter u cant take it with u and retirement is an old dream we will all be working in some capacity until were dead anyhow.
The debt is to unsustainable and colapse is inevitable. Besides I hate my company so much I could care they cut our pay when they bought us out 2 yrs ago and
screwed everything up anyhow 401k is now quarterly vs monthly like it used to be. HP treats their people like crap they cant even get the paychecks right from payday to payday.

 

Offline Morgan96

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Re: Goodbye 401K
« Reply #8 on: June 30, 2010, 04:03:55 AM »
Just a couple of thoughts and options on 401Ks

-  some plans allow a partial rollover to a private IRA --- no penalties or major fees.
-  if you are able to have all or part of the 401K into a self directed account, you may be able to allocate some of the funds into a precious metal backed investment, such as Central Fund of Canada (CEF) or Sprott Physical Gold (PHYS).  There are consistent rumors that other popular exchange traded funds (ETFs) like GLD and or SLV are not fully backed by physical bullion.     

I know, it's still digital bits on a computer instead of cash or previous metal, but at least it's diversified away from the usual largecap/midcap/smallcap/corpbonds/treasuries stuff that ordinary financial advisers try to push.

By the way, the last time a financial "advisor" tried to ask personal questions like net worth and yearly income  (in order to gauge what our allocation should have been according to whatever pre-mixed formula she had on her computer screen) I said that I'd be glad to answer, as long as she reciprocated in kind with her own information.   It turned out to be a short conversation.


Offline joeinwv

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Re: Goodbye 401K
« Reply #9 on: June 30, 2010, 08:48:57 AM »
Having no 401k doesn't make a lot of sense - there is a break even point, where your reduced tax liability will equal your contribution - regardless of employer contribution.

I intend to be working most of my life. However, I have given myself until 50 to work for others / doing things I don't love for money. At that point, I intend to "Retire" into working on things I enjoy, even if they do not make me a millionaire.

I think we got sold on this idea that the only way to retire / retire early, was to amass millions of dollars in investments and assets. My goal has become to eliminate expenses / debt and reduce the amount of money I need to live. My retirement home is not going to cost $500,000 with a BMW in the driveway.

For just about any income level, there are going to be some people who think that is a huge amount of money, while others will wonder how people survive on that amount. The key is being able to adjust your mindset on that scale.

Offline templar223

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Re: Goodbye 401K
« Reply #10 on: July 12, 2010, 04:45:08 PM »
I took about half of my 401k out late last year and I'm looking into ways to get the rest of my 401k money out before the end of this year.

Sure, there's a penalty.  So what?  With taxes going up, it might not be a penalty at all.

Plus I have the peace of mind of knowing those alpha hotels in Washington aren't going to grab it.

My guess is that the market is going to falter again and the obama plan will be to offer pre-crash value to 401ks that were in the market with the "catch" being that you can't cash out for 30 years and you'll be guaranteed the 4% or whatever the 30-year bonds are getting at that time.

Now, if you believe they'll still be continuing the status quo in 30 years to pay you on that in the equivalent to today's dollars, then I've got some real estate I'd like to talk with you about.

John