General Discussion

shockey80

(4,379 posts) Thu May 14, 2020, 12:46 PM May 2020

Time is running out. We must prepare for the worst. I may cash out my 401k. [View all]

I don't want to, however I may have to because I believe the worst is yet to come and it's going to be long term. My 401k, if I started to collect monthly payments it would help a little, but not enough. I don't have a large 401k.

If I cash it out I could live off it for a few years, enough to allow my wife and I to stay at home till there is vaccine. A change of leadership. There is no way in hell I am going back to work. My wife and I are both over 60. Not eligible for SS yet. Tough decisions to make in the next few months, for all of us.

43 replies

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Time is running out. We must prepare for the worst. I may cash out my 401k. [View all] shockey80 May 2020 OP

Panic is not the way to go IMO BannonsLiver May 2020 #1

George Steinbrenner once said, "never sit around discussing things rationally when the situation brewens May 2020 #3

I think George Costanza said that as well. BannonsLiver May 2020 #5

I don't think it's a real quote and Seinfeld may be where I got that actually. It's just funny to brewens May 2020 #12

That's not panic, that's survival. shockey80 May 2020 #8

Yeah BannonsLiver May 2020 #11

I'm in the same boat hamsterjill May 2020 #2

Exactly what happened to us in 2009. LakeArenal May 2020 #20

You can sell the stocks and bonds in your 401K and leave it in there as cash leftieNanner May 2020 #22

I'm worried but trying not to do anything drastic. Mike 03 May 2020 #4

Don't. If you are afraid of the market, JenniferJuniper May 2020 #6

Do not cash out! Johnny2X2X May 2020 #7

It's not about risk. They need the money DrToast May 2020 #10

I have not made a final decision yet. shockey80 May 2020 #17

Surely your plan has a low risk/reward "cash" fund. mobeau69 May 2020 #9

He's over 60. There isn't a 10% penalty DrToast May 2020 #15

If you are 55 or over and quit or lose your job for any reason, the 10 pct penalty is waived. roamer65 May 2020 #16

Thanks. So few know about the Rule of 55, JenniferJuniper May 2020 #21

Since my odometer rolled the "double nickel", I see my 401k as a big UI fund. roamer65 May 2020 #24

I deliberately left my 401k with JenniferJuniper May 2020 #39

Makes sense. roamer65 May 2020 #40

You get it. shockey80 May 2020 #18

The 10% penalty will be waived but they'd still have a tax liability. Totally Tunsie May 2020 #25

When people start abruptly withdrawing their 401Ks, the markets will tank. n/t Yavin4 May 2020 #13

Mine limits withdrawals. roamer65 May 2020 #14

Hope my mistake helps you marlakay May 2020 #19

I hear you, my response is this. shockey80 May 2020 #27

Even Kirk sought Spock's advice when things got tough Fiendish Thingy May 2020 #29

Are you prepared and will you be able to live on Social Security Totally Tunsie May 2020 #23

The other side of the equation is downsizing and reducing expenses captain queeg May 2020 #26

Your situation is something like mine. shockey80 May 2020 #30

My 401k is doing much better than the S&P Fiendish Thingy May 2020 #28

I Almost Completely Agree ProfessorGAC May 2020 #35

I was scared to even look at my last three statements, but when Mike 03 May 2020 #37

Transfer it into a fidelity acct.. Maxheader May 2020 #31

Rent in Costa Rica is $450/month Bluesaph May 2020 #32

Good advice from everyone, thank you. shockey80 May 2020 #33

I take some comfort in the fact that the vast majority of your predictions are completely wrong. nt LexVegas May 2020 #34

Enjoy your comfort. shockey80 May 2020 #36

Have you asked what you have been saving this money for? world wide wally May 2020 #38

Exactly. shockey80 May 2020 #41

Beware estimated tax payments as well as taxes! nitpicker May 2020 #42

Read IRS Publication 505 for more information on estimated taxes nitpicker May 2020 #43