Given the precarious state of the world financial situation, I decided that the money in my 401k would be better used on food, ammo and other preparations than sitting around waiting to implode.
No dice. Apparently, I'm not allowed to take out what's supposedly my money until I leave my job. So, basically, that's x dollars that's just going to go up in smoke. Great.
I'll be honest...I'm a little scared. I'm nowhere near as prepared as I'd like to be, and the bills just keep making it impossible to improve that state. Truck payment, homeowners' insurance, water(the water softener recently got its backflow stuck open, unbeknownst to us--want to guess how much fifty-seven thousand gallons of water costs?), gas(oy vey), and it just goes on and on. About all I can do at this point is pray that the upcoming crapstorm waits until we can get it together.
Sorry for being a whiny punk, folks...life's just been a bit overwhelming of late. On the plus side, Mrs. Wraith and I managed to fill six angel tree cards, so at least some kids who are far worse off than us will have something this Christmas. And we still have each other, and our boys. And we're not homeless and starving, at least not yet. I just have to remember that God is good and just, and eventually, all will be set right.
May the Good Lord bless and keep all of my readers, and the rest of the world as well, through the times ahead. Meanwhile, here's yet another really cool addition to TIB: Hillbilly at Large. Recommended reading, indeed.
I am glad you posted this because I was forced to do precisely the same thing. Here's how it penciled out for me.
ReplyDeleteI had 70k in a 401k that I could not touch for ten years. If I did, I would pay the FEDS 20%, the State 6%, and the penalty was 10%. Total loss was 36%.
Remember one of Obama's campaign promises was the ability to access money in a 401k prior to age 59.5 without penalty? Because of the economy? I sure do. I also know that was BS and was never acted upon.
I took the money out. I simply could not bear the thought of waiting ten years of hyperinflating, markets tumbling, and losing everything I had. I no longer trust this government one fucking bit and I needed the money now.
I've been making payments on the penalty. I still think a 10% penalty might be a helluva lot cheaper than waiting 10 years for a few crumbs. There is simply no way that our economy or our stock markets can turn around on that short of a horizon. All invested money is subject to loss or at the very best...a stagflated Japanese style economy that gains nothing while inflation eats you to death in the meantime. Better off taking your dough now, investing in precious metals, and offsetting the inflationary losses and tax increases that are sure to come.
Not quite the same, bro...I CAN'T HAVE IT. AT ALL, penalty or no. Unless I quit my job, I don't get the money.
ReplyDeleteBasically, I've just flushed it down the toilet. That'll teach me to do what the experts recommend...!!
I am sorry W, I re-read the piece. You can borrow against it, that is universal. It might be worth your time to try that. I dunno.
ReplyDeletehttp://retireplan.about.com/od/401kplans/a/401k_loan.htm
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