Location: On an Island in the west coast of New England
Posts: 13,132
RE: VC hree is your precious 401K
Nice move by the feds to keep people in their 401 k and allow them to recover their losses. The reason why theyrequire yearly withdrawals is because for yearswe have been allowed to shelter earnings from taxes by investing in 401K type accounts. Basically we are deferring taxes on money earned in prime years (high tax tables)and allowed to pay the taxes whentax tables might be less during retirement. The mandated withdrawals is simply payback. Stealthy you can do whatever you wantwith your money. Not taking advantage of such a benefit is a mistake.Most peoplecan't become a multi millionaire by drawing a pension.
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Too busy with fishing to spend much time here.
The penalty should never be there in the first place. That's why. However, just like CI has said, you can do whatever you wish with your money. Your not forced to save it for the future.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Riddle me this, please name one other investment that your allowed to put into an account at 15,000/year pre-taxed and your also allowed to gain instant interest on that money to a tune of 5K+ the day you make the deposit? Name one that even comes close?
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Fieldmouse I dunno ...... the same one that the Senate on Thursday voted to ease rules for seniors who are required to take distributions from their battered retirement accounts ?
See thats the problem, its longterm, its for your retirment but not one of you can imagine the markets crashing when YOU want to retire and use that money.
Ask the people this article refers to how great 401K is ....... its SOOOOO frickin great that law makers are having to scramble to try and ammend it all to help people out.
When that happens, thats a big red flag that it aint that great after all.
See thats the problem, its longterm, its for your retirment but not one of you can imagine the markets crashing when YOU want to retire and use that money.
That's not true. The rule to live by whether it's your 401K or any other investment, if you need the money with in 5 years and some say 10, it should be in safe investments not risky ones. I have yet to invest in anything but high growth funds because I have 25 years before I need the money.
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Ask the people this article refers to how great 401K is ....... its SOOOOO frickin great that law makers are having to scramble to try and ammend it all to help people out.
That's the flaw in the law. It doesn't have anything to do with the fact you get to put your money in an account pretaxed many decades before and get instant interest on your money. You've already admitted you can't come up with a single investment that will do that for you.
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When that happens, thats a big red flag that it aint that great after all.
Great, it's not for you. Quit complaining while I take full advantage of what is currently available.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Fieldmouse I just cannot believe the zealot approach people have with 401's .... but yeah, go ahead and invest however you want, but nobody can tell me they're the greatest thing since sliced bread and this article shows one reason (among many) why and what can happen when you get ready to retire and depend on that 401K
Come on Big D, you're a self thinker!!! These people are suffering because of their own greed and ignorance. They believed the lie that they were "missing out" if they weren't making big interest every year. MANY of these people had all the money they needed in their 401k to retire and live comfortably.
As I have stated before. Mine has been making 4% per year for the past few years. I am ready to shove it all back over, but I think I am a few months away. After that, I have ~15+ years to wait.
Big D. The 401k can either be your friend or not. You have to be willing to do what others won't. Don't listen to the resident wanna-be expert on here either. He'll just tell you you are an idiot but will give you no real advise. You KNOW what I am talking about.
VC here is your precious 401K
