Comments on: Do Not Cash Out Your 401k

By: Trex

Trex — Mon, 11 Jul 2011 13:57:30 +0000

Get your money out of the 401k’s and put it into land etc!

By: Linda

Linda — Wed, 20 Apr 2011 03:56:42 +0000

I lost $30,000 in 2009 and stayed in i got it all back plus $40,000 more. glad i stayed.

By: incometaxguy

incometaxguy — Sat, 22 Jan 2011 01:41:06 +0000

Well put Bill. I know quite a few people who lost money in their 401k’s, real estate etc. in the last few years. Most people need to up their financial IQ, like Pinyo stated over here http://www.moolanomy.com/595/w.....es-a-test/

By: Pinyo

Pinyo — Mon, 30 Mar 2009 12:47:43 +0000

@Praveen and Bill – Good luck with your decisions. I am still trudging forward with my original plan.

By: Bill

Bill — Mon, 30 Mar 2009 11:30:41 +0000

Telling people that “Now is not the time to cash out your 401K” or “Now is the time to increase your 401K contributions” Is all well and good if you are rich or have alot in your 401K, But I have lost almost 50% of my 401K due to the bad economy and crap stock market. Forcasters are predicting that the economy and market will be bad for at least another 1-2 years. At the rate I have been losing money, my 401K will be gone in another 1-1/2 years. I will take mine out now and take the tax hit. Taking a tax hit on my money and having it in my hand is much better than waiting and having nothing.

By: Praveen

Praveen — Wed, 22 Oct 2008 17:33:15 +0000

I think now is the time to stop contributing to 401K if you have already got your employer match or lower or raise it to only so much that you capture the match..

Remember Lehman Brother was steal at 40 bucks, then at 30 then at 20, 10, 5 , 2 and now worthless…so any amount of investing would have given you ZERO…

By: Pinyo

Pinyo — Wed, 22 Oct 2008 15:54:02 +0000

@Shadox — I agree with your assessment. 40% discount makes for a terrific buying opportunity.

@Tom — Locking in your losses is also something that I should mention in my article. Excellent add.

By: Tom

Tom — Wed, 22 Oct 2008 13:41:28 +0000

I totally agree. If you cash out now you are just locking in loses. Like Buffet has said, be fearful when others are greedy and greedy when others are fearful. Right now everyone seems to be fearful. It is a buying opportunity.

By: shadox

shadox — Wed, 22 Oct 2008 02:58:04 +0000

When the market is as down as much as it is, long term savings are almost guarenteed to generate pretty impressive long term returns. If you have a decently long time horizon to retirement (10 years or more), stoping retirement investing or pulling money is exactly the wrong type of response.

By: Pinyo

Pinyo — Tue, 21 Oct 2008 22:06:24 +0000

@Manarin — Interesting chart. I think your local bank is just playing on the fear and going with the flow of emotion.