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What Would you Do If You Had $50k in a 401K?

I have been spreading Ron Paul's warning and preaching his message anywhere, and soon run across people with lots of stock in the stock market. It seems to me like when the crash comes that will crash too. My recommendations over stock would be:

- putting my savings in a money market fund..less risk during a downturn?

- hanging tight on a very broad range of mostly middle of the road, medium growth mutual funds

- getting it out and putting it in Swiss Francs.

Many people do not have safes and do not feel comfortable having large amounts of silver or gold in the house. What's the next best thing? Of course, this is after I am sure the person already understands the importance of storing food, batteries, water purification, duct tape, etc. I don't talk about anything until this foundation is understood.




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I considered leaving my job to get my 401k money

You can't cash out your 401k unless you are no longer employed there. If you have already left there, you can move it tax free to an IRA account. You can now invest in many more securities than you had access to with your 401k and it's treated like a 401k. With some IRAs you can invest in gold or real estate that you manage yourself. You can be the manager or hire someone else, just like a 401k does. Most of the companies that do 401ks will be happy to set it up and it's pretty painless. So the way I see it, the only way you should be in a 401k is if you have to because you are still with the employer that set it up.

If you are at a different emloyer, you can cash out. You have to pay income tax when you take it out. If you are under age, I think 59.5, then you also have to pay a 10 percent penalty. The taxes are a wash so the question becomes do you give up 10 percent of what will be worth less in the future to have it right now? With inflation as it is, you might be better off paying the penalty and investing it into something else that will hold its value or create enough cash flow to beat the inflation. Will a bankrupt govt go after the 401ks? This is another risk that looks more likely every day.

By the way, after considering all this, I cashed mine out. In fact, being able to secure my 401k funds had some major weight in my decision to leave my job of 17 years. The penalty was hard to swallow but a 90% bird in my hand seemed to be more prudent than a 100% bird in some banker's bush. I'm investing in farming and putting in a greenhouse to raise food all year and alternative energy systems (my two biggest expenses besides property taxes). So far, my decision has been the right one.

Good luck!

Any thoughts on the

Any thoughts on the likelihood or timeframe of our 401K's being completely raided?

How to get out of a 401(k)?

How would I get out of a 401(k) without quitting my job (or getting fired)? I didn't know that was possible.

The difference between having

The difference between having gold/silver in your house, or cash in the bank, is that you MIGHT lose your gold/silver to robbers, but you are DEFINITELY going to lose your cash in the bank, or at the least the value of it.

People who are afraid of keeping wealth in their homes need to snap out of it.

Raw land in low extorted theft called property tax area

Build a low foot print off grid self sufficient life style. Be sure your property has water.

sovereign

Get out!

Taxes. Fees. Penalties. pay them and get out. Cash, metals, gold stocks, businesses, land.

Senator Peter Schiff 2016

Bury it. Exchange FRN

Bury it.

Exchange FRN denominated assets for tangible stores of wealth that have no counterparty risk. (Au & Ag) Then bury it. Seriously. This way it is outside your house and away from your family but where only you and one other trustworthy person know about.

Or cut a hole in the drywall, shove in a couple ounces, patch the drywall and forget it.

Safes scream "valuable stuff in here!" Obviously you want to have firearms locked up but diversify where you keep valuable items.

I believe during the "great depression"

gold based stocks did pretty well but we still had a gold backed dollar...

I'd pull it, put it in silver mostly because it's under valued and buy land (REMOTE LAND FORT FARMING), food, livestock, ammo, guns etc..

and for fucks sake.. get over the "i don't feel safe having gold around"..

If anyone feels safe in this fucked up nation, they have their heads up a fairytale's ass.

Safety to small degrees, sure.. I just got a years worth of food so I know I "shouldn't" go hungry but now that could make me a target.. Well hell, damned if I do and damned if I don't but I'd rather be "damned" while being prepared.

Patriot Cell #345,168
I don't respond to emails or pm's.
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Those who make peaceful revolution impossible will make violent revolution, inevitable.

"and for fucks sake..

get over the "i don't feel safe having gold" "

Honestly, OP, Silver is the way to go. My only addition to the conversation is diversify the denominations (i.e. 1/2oz, 1/10oz, etc).

I'm lovin' those little 1/10oz Mercury dimes.

If you don't know your rights, you don't have any.

Seriously?

edit: this should have gone below sierra's post

I have around that much in a 401K I haven't rolled over into my new one from a previous employer several years ago.

I believe since I no longer work for them I can roll it over to a gold IRA?

I need a financial adviser. I have a family member with whom I get financial advice from, who has made a great deal of money from playing the market. He used to author a financial newsletter and advised to buy silver heavily, but then he lost his ass speculating on silver in the 80's (too bad he didn't hang onto it) and no longer writes any newsletters.

As we know, and as he stated, silver will never make appreciable gains, e.g. same amount of silver averaged over time will always buy the same commodities. But he advised me to invest in a moderate risk portfolio (well advised me to go more high risk short term) @ about 5-7K a year, which should outpace inflation. I have my doubts.

I'm in my mid 30's. I'm actually considering not contributing anything to my 401K any more (other than what the company gives me) and just stack silver instead. Then cash out when my parents take a dirt nap (sorry mom & dad) and turn their farm into an off the grid farm with more livestock and some greenhouses after drilling another well and setting up with solar power along with lining a 50K gallon lined watershed to fill up with rainwater.

I would rather have a sure thing. In 2006 I started having my doubts in the markets and pushed it into low yielding bonds, then everyone else lost about 33% within a few years. I made about 2% (under-pacing inflation) but still came out better than the other idiots (I am including myself as an idiot - as I should have invested in silver, but at least I understood that the markets were the worst play at the moment).

I had more FRN's in my 401K than people who had worked there twice as long. Should have pulled out and put my cash into silver. Or invested in apple long before as a stoner told me to do (I don't take financial advice from a stoner in IT although I would literally be a millionaire had I listened.)

In any case I have a few options. Cash out and buy silver. Roll over into a gold IRA. Cash out and buy land. I would rather buy tangible property, either silver or land. I would rather own land. Somewhere outside suburbia where I know suburbia will encroach upon eventually. Then I can sell that and fix up my parent's property.

Should I really cash out that 401K and buy 90% dimes? I think land is a better option. You can't squat on a room full of dimes. Although that would be cool to make a house out of 90% dimes, hehe! But I have set foot into a house made out of glass bottles. Was interesting but a museum piece.

Oh, the other advice was to get married again and double my income. No thanks. Maybe in another ten years or so. To the right woman. But I'm looking out for me and my son. It's just the two of us.

edit: another reason not to go to silver is even if I put in 10% I will only get back 10% of my income, which is 10% of my life - around 7 years if I am lucky. That's my hangup and why I think the purchase of land is a better investment. Although taxes suck.

Roll over to a self-directed

Roll over to a self-directed gold ira

This

This

Southern Agrarian

You could use an insiders trick to get your money

Out without penalty. You do that by making opposite bets where the money in you 401K loses money but the opposite bet made outside the 401K makes money Like a options Straddle. So over time your 401K goes to 0 but you make the same amount outside the 401K.

Do your best have no expectations

You say "many people do not

You say "many people do not have safes and do not feel comfortable having large amounts of silver and gold in the house"....

Well you can get a very secure, fire rated safe for under $1000, and bolt it to the floor. Then get some silver, and some gold, and also keep some FRN's in there that you can use in the event of a 'bank holiday' while the U.S. dollar still functions.

Keep only enough in a bank for day to day transactions in your checking acount and maybe $1000 or so in a savings account; it's not like they pay you any interest anyway, so keep the bulk of your savings truly secure in your own safe.

Really not enough information

Really not enough information to go on in this hypothetical situation. No info on debts, obligations, or assets, nor anything else that would help determine to what use the money should be put.

Most important is ones physical security. This means a secure home, long term supply of food, supplies necessary for self sufficiency, and weaponry suitable for hunting and combat. People who are looking for capital appreciation or trading income before securing their own persons are making a huge oversight.

I would pull it

and buy one or two rental properties. With the positive cash flow, buy silver. Metals do not increase wealth...they maintain it. Real estate builds wealth...always has, and always will. It is a hard asset.

I was lucky enough to live at

I was lucky enough to live at my uncle's for free from 22-25 and was able to save my entire pay check and live off cash from tutoring after work. I bought a distressed rental property, fixed it up and raised the rents (still a bit below market). It now cash flows almost 2k/mo. I'm 27 now. Best decision of my life.

Rental properties are great right now

Housing is undervalued currently, with many home selling below replacement cost. Be careful of the neighborhoods though, and you have to have so reasonable degree of handiness no do some maintence. The key is just to be careful about renters, and ALWAYS do the background check....you never know what you might find.

Josh Brueggen
Engineer
Entrepreneur
Gardener
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois

regarding your 401k

Dont bet on it. move your direction investments away from US stock funds and put them toward international stock fund. If you have a PCRA I would highly recommend putting some funds toward that with Charles Schwab and asking them to invest in AMEX:DOG to short DJI and JPM and ride this baby up!

now im not sure how old your are but if you are 59.5 years old, its time to take a withdrawal and put it towards precious metals. in the mean time keep and eye on your retirement plan...there's plenty of hidden fees for everyone ;)

His name is Edward Snowden

What is Capitalism?
http://youtu.be/yNF09pUPypw

Walmart

will likely be around after a crash. Stock is high but probably dependable. I hate walmart but you asked.

skippy

Take a look at IBM and intel

They are more dependable, control more market share, have better R&D, and are currently both trading rather cheap. Wal-Mart is a good company, but selling rather dear right now I'd say. The key to investing is not necessarily to buy the best companies, it is to know the value, and not overpay.

Josh Brueggen
Engineer
Entrepreneur
Gardener
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois

all information welcomed, thank you...

there are no wrong answers! : )

Release the Sandy Hook video.

ChristianAnarchist's picture

I withdrew mine..

I just withdrew my 401k after watching it decline for 2 years straight and knowing that it's going to continue to decline. I am planning to buy mostly gold with the funds. I only took my funds out about 2 weeks ago and already those funds I was invested in have gone down more (representing maybe another $1k of my money up in smoke. I'm over 59.5 years so I did not have the penalty to pay, but they did take out 20% for fed taxes. I figure I would lose more than 20% anyway if I'd left the funds in there...

buy long term food

for you and your family!
Free 72 Hour Kit & Free Enrollment Offer! - Ends Feb 28th http://dontstarve.mygofoods.com/

if you can get it

then just buy silver or gold.

if you want to invest in stocks then any energy stock is going to go through the roof shortly.

careful with energy stocks

Just because we are finding tons of oil and gas in the US doesn't mean stocks of those companies will rise. Actually historically they lag due to falling prices reducing the value of proven assets they control. The time to buy energy stocks is when supply is tightening, not when oil is flowing losely as it is (relatively) today.

Josh Brueggen
Engineer
Entrepreneur
Gardener
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois

it's about shortages

not new discoveries imho. scarcity drives demand and prices up.

What I am doing

This is not a hypothetical to me, I have about 50K in my 401K currently. Right now I am heavily invested in junior gold miners stock (a recent position taken as gold neared its lower support though currently in the red) In addition to this I am actively trading leveraged funds tracking the S&P 500 based on being a contrarian. I usually do this by comparing the volatility, and the CNN greed/ fear index and going long when the CNN index is at 20 or below and the VIX is over 20, and short or to cash when The vix is below 13, and the greed index is above 90. Basically I am going opposite the thundering herd, and using leverage while I do it. This strategy returned about 45% from May 2012 to the end of the year. I figure since the average investor loses money vs. the market in general then you need only figure out what the average investor thinks, and do the opposite to beat the market. Anyway, long term I'll keep doing this until I see the top line inflation number creep above 5% which is a trigger level at which the FED must either quit easing, or risk hyperinflation, either one will be bad for the markets at which point I'll look to go short, and buy up gold, and some core blue chip businesses in the resulting fire sale. Long story short, I expect a replay of 2008, but maybe a order of magnitude greater, and the only way to beat the game is to "gamble" when the crowd says you'd be absolutely crazy to do so. As for other preparations, I Have tools and some food, but more importantly, means to grow more set aside just in case everything really goes south. Just keep in mind that you should diversify some, especially when we have a meddling government which would seek to put a lid on gold/silver any way necessary......

Josh Brueggen
Engineer
Entrepreneur
Gardener
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois

Forgot to mention

I also borrow against my 401K to purchase rental properties that are cash flowing. I hope to purchase 6-8 good propertie over the next 15 years. If all goes as planned they should all be owned free and clear by the time I am 50, and I will retire south to live off the rental proceeds until I can tap the 401K funds

Josh Brueggen
Engineer
Entrepreneur
Gardener
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois

Personally

I would contact Euro Pacific Capital. I should mention that I am in no way affiliated w/ EPC but I do trust Peter Schiff when it comes to investing.

Buying Swiss Francs doesn't make a whole lot of sense by the way when you can invest in dividend paying Swiss stocks in safe companies (e.g. public utilities). That way you get dividends plus currency appreciation (assuming the USD depreciates vs the Swiss Franc). But investing in prepper type stuff (food, water, toiletries, etc) seems like a good idea. At worst, you can always just use these items.

I'd still say you should buy some precious metals and store them somewhere outside the banking system just to protect yourself in case things really spiral out of control. Doesn't have to be that much but whatever you're comfortable with. And of course, you can buy PMs and store them overseas (though you'd be taking on risk that these overseas companies won't steal your PMs). Then again, there's risk in everything.

If you're a believer that price inflation is going to go much higher then I wouldn't hold on to USD (which one user recommended you do).