I am thinking of pulling all my cash out of my 401K

[OutHouse]

i can not believe how much money I have lost in my 401K. 6 years of earnings gone in 2 months... all my funds have dropped by over half and from what the talking heads are saying the market isnt going to get any better.

so what is one to do? sit back and watch my hard earned money just go away? or pull it out and put it in a fricken savings account that will earn 1.5% interest? that 1.5% is a lot better than what i am earning right now.

yes i know i will have to pay a tax but at the moment that tax will be cheaper than sitting on it and watching the market siphon my funds dry.

 

[manlymatt83]

You should be able to liquidate your positions and put the remainder into savings without taking a hit.

 

[CrazyLazy]

Stick it out man

 

[Delita]

I can't recommend doing this whatsoever.

 

[Hoober]

You're a pretty young guy, right Citrix? If so, I'd just let it sit there. Historically, the market always comes back.

If you're 70, then you're just SOL.

 

[OutHouse]

Originally posted by: CrazyLazy
Stick it out man

I have stuck it out and its cost me a LOT of money. do i continue to stick it out and lose the rest of my money and have no retirement funds at all?

 

[joesmoke]

put it ALL in GM...

 

[OutHouse]

Originally posted by: Hoober
You're a pretty young guy, right Citrix? If so, I'd just let it sit there. Historically, the market always comes back.

If you're 70, then you're just SOL.

I just turned 40

 

[BrownTown]

Thats got to be the dumbest idea ever man, you have lost any REAL money until you cash out. Just ride it out, its not like the stock market will never come back (and if it does our economies gonna be so fucked up NOTHING will be safe)

 

[moshquerade]

so torn....

are we better off just to not look at our statements?

 

[rudeguy]

Originally posted by: joesmoke
put it ALL in GM...

If I buy stock in GM, does that mean I will own part of the government soon?

 

[Noirish]

try to put it in bond or guaranteed portfolio.

paying tax on the remaining is the worst thing you can do now.
it's instant loss.

 

[rudeguy]

Originally posted by: moshquerade
so torn....

are we better off just to not look at our statements?

I don't. They go straight in the fire.

 

[Ns1]

buy high sell low!

sage investment advice.

 

[OutHouse]

Originally posted by: BrownTown
Thats got to be the dumbest idea ever man, you have lost any REAL money until you cash out. Just ride it out, its not like the stock market will never come back (and if it does our economies gonna be so fucked up NOTHING will be safe)

no real money? the hell it isnt real money.

 

[kt]

You'll regret later to your knee jerk reaction. If you are not in desperate need of the money, just leave your 401k alone. You may want to look into if you have the option to put your 401k into a money market fund instead. That way you don't get penalized for withdrawing from your 401k and interest rate for money market funds > savings account.

 

[OutHouse]

Originally posted by: Noirish
try to put it in bond or guaranteed portfolio.

paying tax on the remaining is the worst thing you can do now.
it's instant loss.

if the pattern continues the tax will be less than what i will lose.

 

[HardcoreRobot]

buy high sell, sell low... i like your style

 

[Deeko]

Oh my god this is the worst time ever to sell. You're 40, you aren't retiring for decades. Stick it out dude.

 

[child of wonder]

Originally posted by: Citrix

Originally posted by: CrazyLazy
Stick it out man

I have stuck it out and its cost me a LOT of money. do i continue to stick it out and lose the rest of my money and have no retirement funds at all?

It hasn't cost you ANYTHING unless you DO pull it out.

If you're still 10+ years away from retiring don't even worry about it.

 

[Gibsons]

The time to pull the money out was about 3 months ago. Pull it out now and you're basically selling low.

 

[joesmoke]

Originally posted by: rudeguy

Originally posted by: joesmoke
put it ALL in GM...

If I buy stock in GM, does that mean I will own part of the government soon?

No, but they will be paying dividends in Aveos

 

[Reel]

Originally posted by: rudeguy

Originally posted by: joesmoke
put it ALL in GM...

If I buy stock in GM, does that mean I will own part of the government soon?

If you buy stock in GM and then I buy stock in GM, does that mean I own part of you?

 

[dartworth]

do it...pull it all out...


DO IT


now its my fault OP lost money

 

[speg]

Originally posted by: Citrix

Originally posted by: BrownTown
Thats got to be the dumbest idea ever man, you have lost any REAL money until you cash out. Just ride it out, its not like the stock market will never come back (and if it does our economies gonna be so fucked up NOTHING will be safe)

no real money? the hell it isnt real money.

BrownTown is right. You spent that money years ago and got equities in exchange. You still have all those equities...

...they just aren't worth as much as they were they were six months ago...

... but they could be worth twice as much six months from now.

Three months ago, you could have considered moving into cash, but now you should be buying.