# Would cashing in my 401k be a good idea?



## Evacdad (Feb 27, 2012)

I have about 20k in my 401k. I figure since I'm losing more than my gain that it would be wise for me to go ahead and get it out. Although I will be penalized a tax rate of 45% of it, I think I would recoup the money in less time if I spent it on something more important than letting others control my money.


----------



## acidlittle (Jan 24, 2012)

That is a big gamble, but if you have a mortgage you could always throw it at that, the interest you save on that money will probably equal if not exceed the amount you put into it....


----------



## survival (Sep 26, 2011)

Big gamble, especially if the net gain on the compound interest is rising on your 401 faster than your loses and if your company is matching your 401 as well. If your not missing the money, then leave it in there. Everyone jumps at the quick downturn of the stock markets, but if you have a good program to look at your 401 then you will see that over time the compound will build more than what you are putting in per month at a steady rate instead of sharp drops. A better option would be to invest in a good growth mutual fund (american funds) that have been around for years that yeild at least 12% or better. A lot of people say they can't find them, but they are out there. I have one that is 16% gain right now.


----------



## thomasdangerpowers (Mar 2, 2012)

Evacdad said:


> I have about 20k in my 401k. I figure since I'm losing more than my gain that it would be wise for me to go ahead and get it out. Although I will be penalized a tax rate of 45% of it, I think I would recoup the money in less time if I spent it on something more important than letting others control my money.


personally I would cash out, if you your company matches 5% of what you but in your still not doing good because the actual inflation rate costing you -9% to -12% of your purchasing power anyway. unless Ron Paul wins I would stay out of the stock market and sure woundn't think about any Dollar based bond or mutual funds the dollar is getting weaker that is why prices are rising it takes more dollar to buy the same thing, like gasoline - we are producing at record highs and demand is very low Gasoline is one of our #1 exports yet the price keeps climbing. if this keeps up the dollar will crase and all the savings you have in dollar based investments. look at EuroPacificCapital mutual funds europacific is based on foreign investments, energy and metals and has been doing great as other lose money. before you can make money it helps if you understand how money works and what it is, surprisingly few people actually do. listen to SchiffRado.com and watch Peter Schiff was right on youtube and you can see he was warning about the exact problems that caused the collapse years before they happened because he understands what causes the problem he understands how to profit from them. of buy junk silver that has increase in value as the dollar has weakened. In metals you can actually see how the improvements in oil productions has brought the price down, keep your savings out of the dollar or you may have to work till your 90


----------

