financial collapse

[omegabrock]

there's always talks of it happening and here is a good read i came across today. just thought i'd share

http://moneymorning.com/ext/articles/rickards/55-billion-gamble.php?iris=252777

[Baglady]

I got as far as the 25 yr depression...
Very depressing.
Got to stock up on more seeds.

[Just Sayin']

One day I'm going to wake up and our retirement that we saved so diligently for is going to be "poof" and gone. And there will be a lot of bankers, moneymen and government people going, "we're so sorry"...

Sometimes I think it would be worth the tax hit just to cash it all out and take my chances.

[Baglady]

One day I'm going to wake up and our retirement that we saved so diligently for is going to be "poof" and gone. And there will be a lot of bankers, moneymen and government people going, "we're so sorry"...

Sometimes I think it would be worth the tax hit just to cash it all out and take my chances.It happened to one of my sisters. She lost it all. I just don't trust it myself, and all the banks are offering, even on CD's is 2%. Not worth it, IMO.
Also, in MS., I've seen factories close and employees lose thier 401k's that way. They have to wait an undetermined amount of time, only to find out the funds were mis-allocated all along.

[Just Sayin']

I manage our 401k's myself, and don't try to anticipate what the markets are doing on a micro scale and have done pretty well over the years. I sort of saw the last recession coming, and moved about a quarter of our investments out of stocks and to safer ports, but overall, we still took a pretty big hit. Now it's all doing well, but I'm not real sure that the game isn't stacked against us. Just because we have "money" somewhere, doesn't mean we can actually use it or even get it. It gets depressing sometimes.

[Tango]

The US economy seems to run in a 7 year cycle of recessions.
We have not recovered from the last one.
The next one is due and will most likely be worse than the last.
Plan ahead!

[Smokin04]

http://moneymappress.com/category/members-only/money-map-report/

Here's another good read with a bit more detail. It does mention Buffet closer to the end of the article.

[Prepared One]

I have had profit sharing and then a 401K for 23 years and have quite a large sum. My constant worry is that one morning it will be gone and it's not like I have another 25 years to reacquire. ( Not that in a total monitary collapse I would be so able to do anyway's.)

[Arklatex]

Does anybody know how much of a hit you take when you cash out? I have a 401k and an IRA that I contribute to. I would hate to lose it... I've only been putting into it for about 5 years but I remember some years back before I got into it that a bunch of people lost money for some reason. I really need to study up and fund an alternative.

[Coppertop]

it's so damn depressing --- that is all I have to say. Our life work is just cash in the bank to them, doesn't mean anything because it's not theirs we are taking.

[TJC44]

Ark,

I had to hit my 401K to live on when I was unemployed in 2002. As I recall, they consider it capital gains and hit you for 40%. Someone please correct me if I'm wrong, but I think that's what it was.

TJC

[DerBiermeister]

The problem is ................. yeah, we can all cash out, but that may just turn out to be meaningless IF (as predicted) the dollar becomes worthless. We truly may be headed for times when ammo, food, water, and toilet paper are the ONLY things of "worth".

[Arklatex]

I'm not sure I can bring myself to take a 40% hit on that money I worked so hard for. Seems almost criminal to charge that high of a penalty.

[TJC44]

It's the IRS

[Sparkyprep]

It's the IRS

They have no souls.

[1moretoy]

Building your retirement is a must...diversity is the key.

[Pauls]

withdrawal from a 401K costs you 10% off the top and then you pay income tax on it on top of the 10%.

If I take $100000 from my 401K I pay $10000 to the government, that leaves me with $90000. Then I pay income tax on the $100000 (even though I only get $90000) at say 30% which comes to $30000.
So from the original $100000 I end up with a usable $60000. Unfortunately the government doesn't take their cut before you spend the money so you have to pay the $40000 plus interest and fines three years after you have spent the money. Now you get to spend more than $40000 dollars that you have to withdraw from your account which is likely to cost you an additional $20000 in penalties, taxes, fines and interest three years later.

There is no way that you can have the penalties and taxes withheld or paid and the place on your income tax form that you list it for payment is all but hidden in the fine print. The IRS will let you know that you owe the money but it takes them at least three years to do so. That way they can collect the interest for the time and penalties for each year you didn't pay it.