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Started By
Message
Going to withdraw my 401k
Posted on 4/9/13 at 8:36 am
Posted on 4/9/13 at 8:36 am
But I don't follow the stock market at all. Is this an especially bad time to withdraw, i.e. does everyone and their momma know that the market should keep going up for at least the next month or so?
5
Posted on 4/9/13 at 8:39 am to uway
Why are you withdrawing?
Posted on 4/9/13 at 8:42 am to uway
This is like running across the highway blindfolded. Sure there are times that it will work out, but it isn't a good long term strategy.
Are you extremely close to retirement? Can you even draw from it without penalty?
Are you extremely close to retirement? Can you even draw from it without penalty?
Posted on 4/9/13 at 8:43 am to Vols&Shaft83
quote:
Why are you withdrawing?
Paranoia.
Nowhere near retirement, will face (I assume) 10% penalty plus taxes.
Will I owe the taxes at the end of the year, or do they take it off the top?
This post was edited on 4/9/13 at 8:45 am
Posted on 4/9/13 at 8:46 am to uway
quote:
Will I owe the taxes at the end of the year, or do they take it off the top?
Your plan administrator will probably withhold 20%. You'll have to pay the penalty in 2014 when you file.
I don't think this is a good idea. Why don't you just put it in fixed income?
Posted on 4/9/13 at 8:50 am to ZereauxSum
Don't do it, that is just throwing money away. Move to a conservative fund if you are scared.
Posted on 4/9/13 at 8:51 am to uway
quote:
Paranoia.
can't you just move it to cash in your 401k? or is this a managed plan where you have to pick an investment track? Also, if this is a plan that provides a company matching component, you have to factor that in.
This post was edited on 4/9/13 at 8:52 am
Posted on 4/9/13 at 8:51 am to ZereauxSum
quote:
Why don't you just put it in fixed income?
I'd like to pay off a car loan to reduce my fixed expenses.
I halfway believe the government is going to raid these accounts in the next decade or so anyway, and I more than halfway believe that the current highs are built on a house of cards.
I'm willing to listen to reason if anyone feels like sharing it, though.
Also, note that this is one account from a previous job and is not much money at all.
Posted on 4/9/13 at 8:51 am to ZereauxSum
How old are you?
Do you need to money for something your not telling us about?
I wouldnt do it, unless I needed it.
Do you need to money for something your not telling us about?
I wouldnt do it, unless I needed it.
Posted on 4/9/13 at 8:52 am to uway
WHAT THE frick? Calm your nerves, you're about to lose at least 25% of your money and probably more because of irrational paranoia. I honestly can't think of a dumber financial decision you could make.
Posted on 4/9/13 at 8:53 am to ForeLSU
Paranoia because of the market, or Paranoia because of Government siezure ie: Cyprus?
Posted on 4/9/13 at 8:53 am to cjared036
ok that gives me a better perspective. You made it sound like it was your main retirement account.
Posted on 4/9/13 at 8:56 am to uway
Nobody knows what the market will do. If you're that worried just put it in cash but keep the cash in the account. If you simply withdraw from it you will pay taxes and an early withdrawal penalty.
There aren't many things worse than taking a payday loan at 30% interest but withdrawing from your 401 before you retire is probably one of them.
There aren't many things worse than taking a payday loan at 30% interest but withdrawing from your 401 before you retire is probably one of them.
Posted on 4/9/13 at 8:56 am to Chris4x4gill2
quote:
Paranoia because of the market, or Paranoia because of Government siezure ie: Cyprus?
the fundamentals, government seizures, government debt, etc
Questions: How does the market generally react to high inflation?
When you withdraw, how is the tax rate determined?
Posted on 4/9/13 at 9:00 am to uway
quote:
I'd like to pay off a car loan to reduce my fixed expenses.
Unless you're in a real bind, that might be a really costly way to reduce expenses.
quote:
I halfway believe the government is going to raid these accounts in the next decade or so anyway
Roll it over to a Roth IRA. If Fed gov does anything (I really can't see it) it will be to remove the tax advantages. If you roll over to a Roth you simply pay your taxes now.
quote:
I more than halfway believe that the current highs are built on a house of cards.
Like you, I don't follow the market day to day, but I do know we are at pre-recession highs and with interest rates so low there seems to be higher demand for riskier assets like stocks. I can't see a crash coming, maybe a pull back but not a crash.
Posted on 4/9/13 at 9:02 am to uway
Tax rate is determined by your current income tax bracket.
Posted on 4/9/13 at 9:04 am to uway
quote:
I'd like to pay off a car loan to reduce my fixed expenses.
You would probably be better off selling the car and buying a cheaper one if all you want to do is reduce monthly expenses.
Posted on 4/9/13 at 9:06 am to foshizzle
quote:
If you're that worried just put it in cash but keep the cash in the account.
quote:
There aren't many things worse than taking a payday loan at 30% interest but withdrawing from your 401 before you retire is probably one of them.
Cash in the account is still not cash/goods in my hand. Still seems vulnerable to me as long as I don't possess it.
I do thank you all for the advice. I guess the truth is I am under-weighting the negative effects of early withdrawal as a response to things like this LINK and LINK.
Posted on 4/9/13 at 9:07 am to uway
Paranoia is a mild description. Many people seem to believe that the Cyprus crisis is a government seizure of assets to pay for government debts. This is a deep and fundamental misunderstanding of what is actually going on in Cyprus.
Posted on 4/9/13 at 9:12 am to uway
Where is the paranoia coming from? Alex Jones?
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