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Discussion Starter · #1 ·
I know all the reasons why I shouldn't cash it out, but I would rather pay the taxes and penalty upfront and be out of debt if the economy is going to get worse. I'm in a position to be able to do this, since I'll be quitting my "now" part time employment. My spouse's employment security is questionable, and I'd like to be debt free.

Besides, how much is this 401K going to be worth in six months?

Thanks.

Now is your turn to tell me I'm nuts.
 

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Discussion Starter · #3 ·
If the economy gets better, I might regret it, although not too much. The idea of not having any debt. Nice. :)

However, I imagine that if I still have this debt and my 401k tanks really badly in the next few months, I would really, really regret that I didn't use the 401k money when I had the chance. KWIM?
 

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CHEERS :p
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although I am not american....I figure the 401K is like a retirement plan ?

if you cash it in.......and became debt free....ie mortgage...loans....Credit Cards....the money you would pay to those things monthly you could put in some kind of high intrest savings account.....over time it will build itself nicely....

just my 2 cents, though I haven't investigated whether there is a such thing as a high intrest acct.

in theory I think my idea would work.....good luck in whatever your decision is
 

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Double edged sword. In the long long term, unless there is a TEOTWAWKI it will be something to fall back on if you want to retire.

In the short term, it would obviously be valuable to be out of debt if your husband gets laid off, that way you wouldn't have to worry about foreclosures or repo's or anything of that kind.

Question is, do you want to risk the long term future(retirement), or the short term future(SHTF)?
 

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Student/Teacher
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164 Posts
I am there with you I already cashed out paid off all my credit cards mortgage etc. spent the rest on preps. If things go well I figure I can rebuild with the interest saved. If TSHTF as I expect then I am better off. Ether way I am not looking back, just forward to whatever possibilities turn up.
 

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Doomsayer
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4,048 Posts
Your 401K is NOT going to be there when you need it.

All 'paper' assets will soon not be worth the paper and ink it takes to draw them up.
 

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I help enlighten folks
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Your 401K is NOT going to be there when you need it.

All 'paper' assets will soon not be worth the paper and ink it takes to draw them up.
so does that mean all debt will be meaningless as well?
 

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I help enlighten folks
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might as well buy tons of preps on the charge card then. why not?
 

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Getting Older
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might as well buy tons of preps on the charge card then. why not?
If you could get your timing just right I'd say go for it. The credit card companies are probably at least going to get Bailout II anyway.

I'm also considering early withdraw from my 401K.
 

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Doomsayer
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The average American household carries $8,000 worth of credit card debt.

Preps might actually be a GOOD way to spend yourself into bankruptcy...
 

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NRA Instructor-Ohio CCW
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There is talk that Obama is going to waive the 10% penalty for plan distributions. you may want to wait and see what he does.
 

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Prophet
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I've been having a gut feeling that this global crisis will be ongoing for some time. Im guessing at 5-8 years... :(

i have a feeling that the governments on BOTH sides of the border will be gutting pension plans soon, especially after the Big3 bailout. they need the money. :(

if it gets you outta debt, do it now, before they come for it. at least u wont have any high debts...
if u can get out of debt and buy some preps, all the better ;)

I also cleared out my safety deposit box, and bought a safe. i dont trust the system right now. if the banks collapse, how will you get to your box, gold, etc?

peace
al
 

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wide awake
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143 Posts
I say pull the 401k as soon as possible. We pulled hubby's in Sept, the week before it all started tanking, and have not regretted it one bit. We would have lost more than what the taxes/penalties were anyway. Paid our home off and got some other things squared away. The majority of the people who best weathered the Depression in the 30s owned their own homes and land. I have a gut feeling that what we're about to go through economically will be even worse. Be sure you put enough back to pay property taxes for a few years.

I personally don't think the 401k's will be worth anything by the time we're able to retire. Mason jars are lookin' mighty good!
 

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I help enlighten folks
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I disagree. And i also own my home outright.
people that are selling their 401's now are just making someone else rich.
We'll be back up at least to even in 2 years.
I'd at least wait til summer.
your 401's are supposed to be for RETIREMENT...not for an emotional attachment.
if the world is coming to an end your debt doesn't matter.
people who owned stock during the depression did eventually make out.
however...everyone has a different circumstance.
 
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