Personal Financial Advice Needed Immediately!
I really need the help of my dailypaul family. That is how I feel about this site (thank you Michael) you guys are my family (minus the obvious trolls, but every family has those too)!!!!
This post has nothing to do with getting Ron Paul elected, but has everything to do with my Ron Paul awakening!
I am 42 yrs old. I began my career in the fire service at 19 and left when I was 37 to relocate to another part of my state. At that time, my state planned retirement account had a value of $239,000. This is money my employer paid into the system on my behalf, I contributed nothing to this account. 18 years of employment they contributed about $13,000.per year on my behalf.
That money sat in what is called the "pension" plan, upon my leaving the department, I had the opportunity to swith the "pension" which earned no interest to the investment plan and invest the $239,000 in a variety of ways. I switched the plan to investment and followed the advice of the financial advisor who handled my account. From 2004 through 2007 my account more than doubled to around 525,000. This was exciting!
In 2005 I resumed employment with the fire service and not only was my investment portfolio earning money, my new employer was also contributing (not nearly as much as my previous employer) because my salary is about half of what I was making previously. No biggie, I went back to work because I love the job, not because I needed the money, persay.
And then the year 2008 (ouch) I have steadly lost money this year and my account value is around 425,000. The most signifacant loss has been this month which was $11,665 from 9/1 - 9/10. So here is what I need to know.
Do I cash out? In order for me to cash out, I must quit my job, wait 90 days or 3 full calandar months. Pay a 20% penalty because I am under 55 years old, then pay the appropriate amount in taxes which I figure will be atleast 30%. My current salary is about $34,000 annually.
If I do cash out, my net will be about $238,000 (if I don't continue loosing major money in the 90 day wait period / however, I am switching my plan around to the most conservative plan available)The $238,000 would pay off my mortgage and we would be debt free. I could resume employment (if I wanted too) one year from my cashout.
Please help me decide as I need to turn in my resignation tomorrow (9/15) to provide 2 weeks and not work a day in October.
Thanks you guys!
Umm, try looking or asking,......
some real financial advisors. I had a friend who pondered the same thought and he got some real help from someone who knows what to do.
Your gonna loose the money if you cash out and possibly get taxed heavily.
So,..................maybe invest in some better options, maybe check out what the Europeans are doing.
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"The real terrorist's are in this country. They are not planning to blow us up,......... but rather, take our money, our freedom, and our country."
Cash out and buy as much of
Cash out and buy as much of this as possible. Cheapest silver around.
http://www.bulliondirect.com/catalog/lp/Am_Eagle_Silver_Coin...
Keep in mind, If you take inflation into account, your current value is about 55% of what it was in 2000...in other words, when it "doubled", it actually caught up with inflation.
buy land or other "hard assests"
just my opinion, good luck
letushope,
have you seen any advice yet that has helped you to make up your mind by tomorrow ?
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Our fondest wishes. and our worst fears, are seldom realized !
sorry for the delay - ran out to sams
got a decent supply of staples and dry goods.
what my ears hear is move the funds into money market, tbills etc and keep my job.
what my heart hears is get out of the system - you have land, and can harvest the majority of your own food. did anyone actually say that?
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
I am in a similar
situation. I have a govt job (22 yrs) and have been looking for a job elsewhere so that I can withdraw my 458 to purchase rural property (only I contributed). In order to do that I would have to be severed from my employer. But 2 years ago having awakened to our country's financial doom I moved it from mutual funds to the general fund which you gain very little but lose none. Now Bob Chapman of the international forecaster dot com (this is what they suggest to their clients) suggests that if you already have your storable foods, ammo, gold, silver, etc..you could put your money in Govt Swiss Francs bonds (their money partially backed by gold?). Don't know much about it, but worth checking out.
Good luck
note: www.theinternationalforecaster.com
I know people
here on the DP do not like ETF's....but for the short term.....I would see if you can transfer all of that money into the SLV ETF and take out what is needed to pay off debt and slowly buy SILVER PHYSICAL.
Some rough times are coming......and you need to try and hold on to what you have. This is not a "Make Money" time in my opinion.
It is good you are asking and thinking....
This is my 2 cents worth of info.
Some questions
1. What's your annual rate of return?
2. What is the type of account you have exactly? (401k, IRA, mutual funds, etc.)
3. What did you lose all the money in exactly?
Right now I would say don't cash it out. You have a fair amount of years for the account to at least earn back what you lost. Or at least that's a better idea than using the money to pay off your house because then you will have zero for your retirement and you will probably regret that when you need it most. Besides, having debt in an inflationary economy is to your benefit so I wouldn't worry too much about that. If you are worried about debt, a better thing to do might be to sell your house for something more affordable because since 2005 the value of houses has gone down and will probably bottom out around 2012 which is when you would want to buy a house. The profit you will get from your house you can put into your retirement account and make back what you lost and A LOT more. This is, if you're really worried about the debt.
Also, I wouldn't go with the most conservative plan (as in under 3% return) because for sure you will lose a lot of money right now. That won't keep up with a 6% inflation rate. But what exactly do you mean by a conservative plan?
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"We will never give up. We will never give in." - Dr. Ron Paul
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"We will never give up. We will never give in." - Dr. Ron Paul
I don't know
my annual rate of return and the money was in balanced funds, which from what I understand is a diversified mixture of investments; I had it in 3 levels of risk 25% conservative, 50% moderate and 25% aggressive. This is where it did well for roughly 3 years, then began the loosing rapidly. I lost pretty evenly in all three accounts.
I would sell my organs before selling my land, so that (although worthy advice) is not an option for me.
The most conservative thing for me to do per my financial advisor was to get into the moneymarkets, there is very little return, but very little risk (so he says).
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
Need more information ...
Can you simply transfer all of the money within the retirement account into a money market fund?
Note: I am not suggesting you do this, I am only asking a question.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
yes I can transfer into money market, no fees or penalty's
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
Here is a suggestion, only a suggestion.
Whatever you do make sure the money does not touch your hands.
I am assuming that the money is in a government pension fund.
Get yourself a discount broker from someplace like fidelity.
Have this guy roll the entire amount into a fidelity money market or whoever you go with. This should be free or nearly free.
At that point do some research and dollar cost average it into a variety of tools that you have trust in. Use the advice of the professionals but ask questions and watch it like a hawk.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
thanks RHINO
I was wondering where you were?
Your previous advice was right on cue except for the small cap stuff, which may not be your fault, just where my limits are on understanding everything.
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
No problem ...
Remember, do not take the penalty if at all possible.
And do not give up your job if at all possible...
Unless of course you have decided to become an industrialist.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
Don't quit
If its a fund, LOOK at the different options, you should be able to change to more of a commodities such as food or mines. do some research you can stop the bleeding yourself.
My funds had like 7 different options.
Freedom may be worth searching for.
Remember, Dont battle the govt with guns(ALONE), Beat them in court, in state legislature, or hire Ron Paul for president.
Freedom may be worth searching for.
Remember, Dont battle the govt with guns(ALONE), Beat them in court, in state legislature, or hire Ron Paul for president.
My two cents
cash out. I would cash out. If you think you will get unemployment think again. The states are broke and borrowing from the Fed. hee,hee You possess knowledge that others don't have we all know what the final outcome is going to be. Are you ready for it, are you prepared? If not put the money to good use? Earth home, freeze dried food, guns ammo, seeds, farm land, tools etc. If the worst happens you are all set if nothing happens you can always resell the stuff but I think you will use it all. It is likely that we will have inflation and deflation a roller coaster ride to part you from your money. Just makes sense to be ready of anything. I think people who assume that we will continue business as usual will be hurt the most. Peace
Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.
Well,
I like the part of your choice to pay off your debts!!! That's gotta be your absolute best choice ever! Slave free! yay
But like Sierrahbpt, if any money leftover, I would buy silver and gold coins (I prefer 1/10 oz gold eagles, they cost less, easier to trade/barter) take possession of them and place them in secure location.
I get my coins here: http://www.bulliondirect.com/catalog/lp/American_Eagle_Silver_Coin_Delayed_(1.00_oz).html
I wish you all the very best on your choice! Good for you.
the problem is is that
the problem is is that houses are going to tank much worse then where they are today.. no sence in paying off a 400k house when the value of it is going to 100k or less! just get the money into treasuries.. sit back and wait for the smoke to clear.. work for as long as you cvan till the layoff come and all of us will be seeing that lol! then do what you have to do!
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I had that thought too,
If I am laid off, then cash out. Let my house go on the verge of bankruptcy and make an offer to settle. I was reading that failed mortgages were being offered for pennies on the dollar. Wouldn't the bank consider an offer in lieu of foreclosure. My home is slightly different than most as my property was purchased years before we built. We sit on 13 acres and bought it for about$35,000 and it escalated in value to about $125,000 (I know real estate values falsely rose), but we then built a $325,000 home for about $200,000. When the future real estate market stabilizes our home and property should be a valuable asset. Unless I am missing the whole picture.
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
if your property is a rural
if your property is a rural self sufficient type place where you can grow your own food.. then I would keep it! those who will be rich in the furure will be farmers who have acreage..
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I should add for consideration.
My job is tied to the economy as I deal with new construction. I do plans review and inspections for fire code compliance. As the economy tanks, so does new construction. So while right now things have slowed down, they have not tanked in my area. BUT! construction generally requires loans, the banks are tightening up their belts the industry may very well be tanking and soon. I would be laid off as I am among the newest hires, you know last hired first fired....
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
the stock market is going to
the stock market is going to take a huge hit! if you can move the money to tbills, or a money market of some sort! better to get some interest but not lose value if this stuff is invested in the stock market.. and ofcourse you know me.. I would look into seeing if you can invest some of this into gold or silver.. I think there is some way to buy the coins and have them held for you. Do not buy an etf.. with unemployment rising I would not quite your job! jobs especially good ones are going to be hard to find.. just move your money into treasuries! and if you can maybe 10 to 20% into some sort of precious metals! I am not a financial guru but the writing is on the wall.. were going to see hard times ahead!
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
don't quit job ?
"with unemployment rising I would not quite ( quit ? ) your job! jobs especially good ones are going to be hard to find.. just move your money into treasuries! and if you can maybe 10 to 20% into some sort of precious metals!"
The way I read the OP, if she doesn't quit her job, and cash out, there isn't any money to move around.
If she does cash out and invest 10 to 20 % in silver and gold, she may want to consider whether she wants to lose another 25% or so of her PM purchases.
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Our fondest wishes. and our worst fears, are seldom realized !
thanks SIERRAHPBT
I did check on the precious metals approach and they cannot do it. We have personally buying some silver as cash on hand permits.
I have thought about waiting for the "lay-off" because I would atleast be elegible for unemployment compensation. If there is anything left!
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
if you were to be laid off
if you were to be laid off what would you be able to do with your account?
do the rules change?
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I don't know that (will ask)
I assume, since I would not be currently employed I could cash out after 90 days. Only assuming. I talked with the financial advisor for some time on Friday and said I would take the weeked to make any decisions.
They of course want to keep you in the system and say "you can't look at the losses as real, to say you have lost $100,00 dollars is not accurate because it's not "real" money until you cash it out - right now it's an investment which is not to be considered money"
I may be a hillbilly, but it's real money to me.
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
your right! a half million
your right! a half million bucks is a fortune! i think you just move everything to cash.. then wait.. we could see hyperinflation inwhich case the stock market could go much higher... then when you see whats happening you can move the money back where you are.. but man i would not quite your job.. also don't pay off your house.. why pay 400k for your house if its going to be worth 100k in 3 years.. see what I am saying?
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
moving everything to cash?
are treasuries and tbills cash within an investment plan. I don't understand if that's what you mean. The advisor told me on Friday that money markets would be the safest plan for me considering my concerns. He didn't mention tbills or treasuries.
I see exactly what you are saying as far as paying into the hyperinflated housing market.
!!!Truth is treason in the EMPIRE OF LIES!!!
" Single acts of tyranny may be ascribed to the accidental opinion of they day; but a series of oppresssions...pursued unalterably, through every change of ministers, too plainly proove delibrate, systematical plan of reducing us to slavery..."
Tho
yes... money market is the
yes... money market is the best. those consist of treasuries.. you may only get 1 or 2% but its better then losing money!
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I would just move everything
I would just move everything to cash in your account.. tbills or treasuries.. money market?.. get the 2% oe whateve and thats it.. nothing risky! the market is going down! and thats good keep buying as much silver as possible.. it is a counterweight to what your retirement account may do!
just pick up pre 1964 US silver 90% coins.. they are getting hard to find but just keep accumulating.
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
Observations
The decision is ultimately yours, but:
You say you love your job, so it's not like you're trying desperately to get out of it and still have financial security.
You have already switched to what you consider to be a more conservative arrangement for your funds, in hopes of not losing money at such an astounding rate.
There's a lot of this going around right now. I don't think we're going to have some kind of massively helpful rebound in the near future, but I also don't think you're better off paying a penalty of that size and then having zero nest egg for your future, which is what that money is supposed to be fore in the first place. You talk about being debt-free, however have you considered how you would be living for the 1.25 years that you would not be working? What will you do during that time period? You seem to like to keep busy/work, so how will you spend your time? Volunteering is great, but is it something that you can realistically do for all that time, and is your partner making enough to support your basic needs?
If you can really get all your ducks in a row, then sure, cash out. It seems like this is a bit of a rush on a decision of this size, though, and I see a lot of questions not answered by your post. Just my $0.02.
P.S. - Tomorrow is not 9/18.