Investing in Precious Metals 101 Ad

Anyone taking the 10% penalty and cashing out 401k or IRA?

Login or register to post comments Last Post 327535 reads   136 posts
Viewing 10 posts - 11 through 20 (of 136 total)
  • Thu, Mar 05, 2009 - 03:12am

    #11
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

[quote=c1oudfire]

 

Me, too . . .I’m currently on the verge of cashing in an annuity in to pay for the removal of mercury amalgams and some other extensive proactive dental work.  I feel the return on investment will be higher on getting the mercury out of our systems and preventing future dental/health problems than the return on the limited choices in the annuity.  Yes, the tax hit will hurt, but not as much as the devastation to our annuity if we stay invested in stocks/bonds/dollars.

 

 

[/quote]

But I think, at the rate we’re going, that taking th 25% hit is better than the overall 50-60% hit.

  • Thu, Mar 05, 2009 - 03:55am

    #13
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

Cloud –

That’s exactly why you should educate yourself on how to trade a down market.  We have been trading the market, buying and selling put options since November.  Being market neutral allows you to trade in an up or down market.  You take what the market gives you and you don’t worry about the circumstances moving it. 

You also don’t have to worry about bonds or T Bills or any type of equities v. bonds v. cash portfolio make-up.  We are 100% cash except for any open option positions and we are just looking for a reason to close the trade. 

It took two years of intense study, a year of practice trading with paper money, and daily studying to get there, but we are trading exceptionally well now, generating revenue for debt elimination and focused equity investing and the choice of being retired at age 47.

  • Thu, Mar 05, 2009 - 03:56am

    #14
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

I did, in September.  I’ve been investing so successfully since that time that I actually came out ahead for 2008!  Thank you Peter Schiff, Marc Faber, Howard Ruff, etc.

 

  • Thu, Mar 05, 2009 - 03:56am

    #15
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

I was told that I can’t cash out unless I quit.  Is there a way to cash out without quitting your job.   

  • Thu, Mar 05, 2009 - 04:40am

    #16
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

[quote=Set]

I was told that I can’t cash out unless I quit.  Is there a way to cash out without quitting your job.   

[/quote]

They have to give you a form which shows you all the requirements you must meet before you can cash out.  I claimed "financial hardship" or something like that.  After looking at the account for so long day after day and seeing the losses, I knew I had to pull the money out.  I know in Fall of ’07 that something was wrong.  I’m glad I pulled the money out but I’m sorry that I put them towards my debts.

  • Thu, Mar 05, 2009 - 05:46am

    #17
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

So,

 

Here is my problem. 

 

The Dow is below 7000. My 401K is worth 1/2 If I take what’s left…. minus 20% tax + 10% penalty leaves what 1/4th!!!!!!!!!!!

 

I’m kicking myself for not moving the money at 13000. I knew better. I have stopped all contributions.

 

I have a mere 12K in a state retirement. They withhold 20% tax. I’m not sure of the penalty on state retirement funds.

 

Please help me.

I am one who has over 20K in CC debt… Closer to 30K if I’m honest.

My income before taxes is more than 100K

I want to get rid of the CC debt if TSHTF

Mortgage is 78K on a home in the 200K range and there is about 8 years left on a 15 yr note.

Of course a HELOC for 30K (past cc debt)

NOTHING IS LATE!!

Aaauuuggghhhh!!!!!!

 

If I lose my job, ………………

 

These thoughts keep me awake at night.

 

Can anyone recommend a course of action?

 

C.

  • Thu, Mar 05, 2009 - 06:13am

    #18
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

[quote=rncarl]

So,

Here is my problem. 

The Dow is below 7000. My 401K is worth 1/2 If I take what’s left…. minus 20% tax + 10% penalty leaves what 1/4th!!!!!!!!!! 

I’m kicking myself for not moving the money at 13000. I knew better. I have stopped all contributions.

I have a mere 12K in a state retirement. They withhold 20% tax. I’m not sure of the penalty on state retirement funds. 

Please help me.

I am one who has over 20K in CC debt… Closer to 30K if I’m honest.

My income before taxes is more than 100K

I want to get rid of the CC debt if TSHTF

Mortgage is 78K on a home in the 200K range and there is about 8 years left on a 15 yr note.

Of course a HELOC for 30K (past cc debt)

NOTHING IS LATE!!

Aaauuuggghhhh!!!!!!

If I lose my job, ……………… 

These thoughts keep me awake at night.

Can anyone recommend a course of action? 

C.

[/quote]

rncarl,

Please excuse me if I’m too nosy but I am curious.

You say you have a HELOC for 30K (past cc debt)

You say you have close to 30k in CC debt – is this new since the past CC debt?

If so, perhaps the first thing you should do is create a budget and stick with it.

Next quit spending money except for the absolute necessities – put away those CC’s.

Then you should pay down the most expensive debt first – presumably the CC debt. Don’t wait for TSHTF scenario to solve your problem – you may be waiting a long time and the interest will keep building.

Then knock down the HELOC.

Repeat as necessary – with your income, you shouldn’t be carrying such a debt load.

Personally, if you are relatively young, I would leave my 401k alone. The cost to cash it in is too great and you will definitely lock in your loss. However, bear in mind, this is one man’s opinion. As Chris M. would say, "Trust yourself".

  • Thu, Mar 05, 2009 - 01:48pm

    #19
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

cloud –

Send me an offline email and I will pass info on to you this evening.  Until then – here is the link to the seminars we took.  Be forewarned – the website is a very cumbersome – I would have set it up differently, but then again, it’s not my site.  You will need to register first to be able to access the course sign-ups.  The course you want to take is the Wall Street Basics 1-5 course – I would order the CDs vs. the On line instruction – that way you can stop the CD if something comes up and you aren’t hostage to your computer.

http://www.achieverschoicequest.com/home/tabid/36/Default.aspx

We took the 1-5 seminar (live lecture sessions) starting in 2002 and have been through the course close to 30 times – always hear something "new" each time even though it has always been in the material.  We also have the CD version of the course.  As you get a little experience, you hear things differently and pieces fall in place faster and in larger chunks.  Three years ago we took the Advanced and RTP course and have taken the RTP course each year since.  You have to take the 1-5 course first to be eligible to take the Advanced Class or RTP course.

And in the interest of full disclosure – I get absolutely nothing by referring you to the course.  The instructor does no advertising other than word of mouth – that way the classes are self policing – students refer people that have similar interests and are like them.

If you decide to take the course I can tell you it will be one of the hardest things you have ever done.  Not that the course material or techniques are difficult to understand.  What’s hard is developing the discipline to do things exactly as taught and to overcome your fear and greed once you enter the market.

If I left anything out, or didn’t convey something quite right, Mrs. Dogs will likely come along and correct me via post.  Then she will call me and yell at me for being stupid.

  • Thu, Mar 05, 2009 - 01:56pm

    #20
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

Sam,Thanks for the reply. Yes the new cc debt…. is new. I have only been paying cash (real) for things since last spring. I am within 15 of retirement (I’d prefer 10) Most of that HELOC was student loans. I am throwing most of my disposable income at the cc debt.
interesting note, each time the principle goes down, they adjust my limit within 1-2K of the balance.
For anyone who thinks that CC debt can be managed, they are only fooling themselves.

Besides paying down debt, my only investments right now are securing SHTF supplies.

  • Thu, Mar 05, 2009 - 03:15pm

    #21
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

    Posts: 1612

    count placeholder

    Re: Anyone taking the 10% penalty and cashing out 401k or …

Thanks for the reply Caroline, but I don’t think I’d qualify for a financial hardship… yet.

Viewing 10 posts - 11 through 20 (of 136 total)

Login or Register to post comments