Cash out of pension fund?

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z's picture
z
Status: Member (Offline)
Joined: Jul 1 2010
Posts: 8
Cash out of pension fund?

 Hi all, 

Wondering if I could get some sound advice here, as it is sorely needed. I live in Israel, which may or may not suffer greatly from the coming collapse of the Euro zone. My big concern right now is the pension fund: should I keep putting my hard-earned cash in there, hoping that in 30 years time the fund will still be there to support my retirement years, or do I take everything out now, giving away 35% to the IRS?

All comments are most welcome as I've been racking my brain for days with no decision... 

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 800
I would cash out (as much as I could)

z,

It is unlikely that financial promises made now to be redeemed 30 years from now will be kept. Frankly, I'm surprised that things are holding together so well now. Unless a new form of powering our machines is found, we will be forced into energy austerity. At the very least, that will collapse our global debt based money system and all promises tied to it. With all the unfunded promises made in the US (SS, medicare, medicaid,) future taxes will have to be raised to fund these. I see taxes as on sale now. These are the good old days. Based on these criteria alone, I suggest that you close your account and invest for your own "retirement" or what comes up between now and then. You can likely start contributing to your pension fund again in the future, if you choose.

If you raid the fund, you will be responsible for that portion of your retirement. You will have to make the decisions - or hire someone to make them for you. If you keep the funds in paper investments, you'd probably be better served staying within the system. If you are planning to blow it on a really nice vacation, don't pull it out. If you are going to buy PMs, decide where you will keep them before you buy them. If you need to leave, gold is more portable, but silver will likely outperform. You need to decide what ratio you are comfortable with. If you've thought about it for a while, you probably already have an investment plan.

You know what the likely tax bill will be. Since we're so close to a new year, would it be better to wait a few days or do you want to force the transaction into this year? Is it possible to do part now and part next week?

Hope this helps,

Grover

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