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brewboss
07-13-2011, 06:38 AM
My 401K is strictly stock market based. There is nothing else that I can invest in outside of stocks and govt bonds. Soon I belive the market will crash again. This means my retirement will crash with it. Does anyone have any suggestions on what to do with it? Do I pull the money out an dpay off everything, including my house, then put my money into a silver/gold physical IRA? I do get company matching money, so I'd take advantage of that, but it's killing me to know that I'm probably going to lose at least half of the money, leaving me with less money than I have put in my retirement. It's just a crappy feeling. Any advice woudl be greatly appreciated.

Spock
07-13-2011, 07:57 AM
My 401K is similar... no cash/money market option to hide in for awhile... but it does have TIPS and a commodities fund.

take out a 401K loan... This will "protect" up to 50K. the down side is you'll pay tax on the interest again when you withdraw the repaid loan interest in the future. Be aware that you may have to pay all of the loan back in a lump sum if you leave the company or are laid off.
Turn over the rocks in the funds available to you... look for which funds get hit the least during the crash.
Balance your portfolio with your outside 401K funds... ex. if your 401k is all stock, you should hold counter balancing investments outside the 401k.

CaptainTripps
07-13-2011, 01:26 PM
If it were me I would keep it in the lowest risk area. If it goes down it wont go down as much. But on the other hand it it goes up it wont go up as much. You can borrow half of it to do whatever you want. Then you pay yourself back interest. Its kind of a nice way to sock away some pretax money and yet still be able to access it.

campandrew
07-13-2011, 01:34 PM
Was told only: "hardship" cases qualify for the 401k loans,thoughts?Thanks in advance,A.

chartsrgood
07-13-2011, 02:10 PM
My 401K is strictly stock market based. There is nothing else that I can invest in outside of stocks and govt bonds. Soon I belive the market will crash again. This means my retirement will crash with it. Does anyone have any suggestions on what to do with it? Do I pull the money out an dpay off everything, including my house, then put my money into a silver/gold physical IRA? I do get company matching money, so I'd take advantage of that, but it's killing me to know that I'm probably going to lose at least half of the money, leaving me with less money than I have put in my retirement. It's just a crappy feeling. Any advice woudl be greatly appreciated.

Not enough info, such as what in the market can you put the money in.(mutual funds, etf's, individual stocks, load funds, no load funds)
Are you sure there is no money market option?

I would write/email/call the 401k manager and ask what you have asked on here. They might be helpful, you have nothing to lose by asking.

There may be a way to take some of the money from the 401k and put it into an IRA. That is worth looking into. You may need to go to several sources(financial planners)to find the answer. Although I don't know the answer I suspect there is a way to do it.

fwiw
It makes no sense to me not to have a cash option in a 401k. I am suggesting it is likely there someplace.

My wifes 401k was in cash during the 2008-2009 drop. Saved a good deal, like around 50%.

CaptainTripps
07-13-2011, 02:44 PM
Was told only: "hardship" cases qualify for the 401k loans,thoughts?Thanks in advance,A.

There is a "hardship withdrawl" where you get a 10% penalty then have to pay taxes. Every 401k Ive done has a loan deal. Currently I have some money on loan from myself. It didnt cost me a dime to borrow it and the 5.25% interest goes into my account. If I quit/lose my job and cannot pay back the loan then whats left gets defaulted and I have to pay taxes on it. I dont know if that sort of default would get reported to a credit agency or not. Maybe some companies have different rules but this is how mine is set up.

Obediah
07-13-2011, 03:18 PM
From experience now, I'd quit kicking my self in the arse bail out of that single engine nightmare before the hail hits, and most important of all don't look back- I mean why should you care where the plane crashes once your no longer in it!

AvergageJoe
07-13-2011, 11:38 PM
I took a loan from my 401K, got fired and defaulted. Yes, the taxes suck, but I used for a good purpose. A default will not show up on your credit because you are also the lender.

I think about cashing out all my IRA's and 401K's and taking the tax hit now. Use it to pay off debt, buy a small farm, and lots of food, etc...

Plan B is to keep them all in cash/money market accounts and wait until things implode. People will sell stock like crazy to raise cash and then I can convert to stocks - hopefully before a total dollar collapse. But that's a big risk...

brewboss
07-14-2011, 06:45 AM
Not enough info, such as what in the market can you put the money in.(mutual funds, etf's, individual stocks, load funds, no load funds)
Are you sure there is no money market option?

I would write/email/call the 401k manager and ask what you have asked on here. They might be helpful, you have nothing to lose by asking.

There may be a way to take some of the money from the 401k and put it into an IRA. That is worth looking into. You may need to go to several sources(financial planners)to find the answer. Although I don't know the answer I suspect there is a way to do it.

fwiw
It makes no sense to me not to have a cash option in a 401k. I am suggesting it is likely there someplace.

My wifes 401k was in cash during the 2008-2009 drop. Saved a good deal, like around 50%.

Well, I work for the govt. My 401K is all stocks. either S&P, or foreign stocks or govt bonds, etc. There's no way to win in this situation. Makes me think the govt did it this way on purpose. It now has 50% of the workforce in america invested in the stock market, so that's 50% of the workforce that doesn't want the country to default and would be willing to go along with ANYTHING the govt does to try to keep its' head above water. I fell like I'm getting shat upon!

CaptainTripps
07-14-2011, 10:13 AM
I only keep my 401k going just incase the financial things dont fall apart. In good times the 401k rocks but in bad times it sucks. Have other investments and dont put all your eggs in one basket. I will keep contributing to mine until I reach a certain point, then only the minimum contribution to get the company match deal. The 401k is like social security, meaning dont expect it to be worth anything to retire on.