Odds of me seeing my 401k

[Trailrider]

Bump. I'm in the same position as you. Started up a 401k & Roth IRA almost 20 years ago and have a sizeable amount saved up. I'm in my 40s now and worry about the market taking another 2008 or worse dump, or something else happening to my money. I recently left my last job and have the option of either leaving everything in my old account, rolling it over in to my new companies 401k, or rolling in to my own IRA that I have more control over.

OR, is the sky falling and should I take some out, suffer the penalty and pay the taxes, and put it in something else? I'm just not a financial guru. But I am worried about what' I've got saved up so far being reduced to nothing if the current bubble inevitably bursts.

 

[Gaffer1968]

Bump. I'm in the same position as you. Started up a 401k & Roth IRA almost 20 years ago and have a sizeable amount saved up. I'm in my 40s now and worry about the market taking another 2008 or worse dump, or something else happening to my money. I recently left my last job and have the option of either leaving everything in my old account, rolling it over in to my new companies 401k, or rolling in to my own IRA that I have more control over.

OR, is the sky falling and should I take some out, suffer the penalty and pay the taxes, and put it in something else? I'm just not a financial guru. But I am worried about what' I've got saved up so far being reduced to nothing if the current bubble inevitably bursts.

I lost HALF my retirement fund as a result of 2008. Had I to do over again and beat it by a year, I'd have taken the early withdrawal penalty hit. The one thing I'm not sorry about is taking the 62 YO early SS retirement. Overall it takes 12 years to get to the point where what you get vs. could-have-gotten after waiting those 12 years equalizes. I'm at that point right now but don't regret it because I paid the maximum SS for decades before and the benefit even at 75% is still enough for me. No car payments, no mortgage - bought it for cash... just property taxes and utilities...

 

[Trailrider]

I lost HALF my retirement fund as a result of 2008. Had I to do over again and beat it by a year, I'd have taken the early withdrawal penalty hit. The one thing I'm not sorry about is taking the 62 YO early SS retirement. Overall it takes 12 years to get to the point where what you get vs. could-have-gotten after waiting those 12 years equalizes. I'm at that point right now but don't regret it because I paid the maximum SS for decades before and the benefit even at 75% is still enough for me. No car payments, no mortgage - bought it for cash... just property taxes and utilities...

Your first sentence is what I'm worried will happen. I was still relatively young in my retirement account when 2008 happened, so I didn't lose a significant amount like you and others did. I knew coworkers back then who lost hundreds of thousands of dollars though. I'd rather take the penalty and pay taxes than lose that right now.

My line of thinking was what you closed with. No mortgage, or bills period minus utilities and taxes. That's what I'm torn with. I'm at the point in life where I'd rather just be happy and debt free and not have to worry about it, versus what might be 25 years from now.

Having said that, I'm still participating in my current new companies 401k plan because they match up to 6%. Just sure what do do with my old account.

 

[Spikey]

Same thing with me as you guys. Right now I’d be worried about the govt taking it in a nationalization plan ! Don’t think it can’t happen either ! Pelosi has already been thinking on it !

 

[Alphacpa]

Im 35. My dad had me start a Roth 401 when I was 16. At 25 I started a 401 at work. So Ive socked away a fair amount compared to most my age. Problem is, Ive been under the impression for the last 8-10 years that Im putting away money that I’ll never see. So what are my chances?

Your Dad's advice on the ROTH IRA was brilliant. Each year, move as much money into the ROTH as you can considering you will be taxed on the contributions. Trust me, you will never regret it. I'm over 59.5 now and use my ROTH as essentially a checking account to buy nice things such as a home, a car, a boat, a jet ski whatever you think you will enjoy in retirement. Best wishes.

 

[lostchild]

The only ones who lost in 2008 were the ones who panicked and bailed.
Everyone I know who stayed in is waaay ahead of the pre-crash numbers.

 

[Gaffer1968]

Your first sentence is what I'm worried will happen. I was still relatively young in my retirement account when 2008 happened, so I didn't lose a significant amount like you and others did. I knew coworkers back then who lost hundreds of thousands of dollars though. I'd rather take the penalty and pay taxes than lose that right now.

My line of thinking was what you closed with. No mortgage, or bills period minus utilities and taxes. That's what I'm torn with. I'm at the point in life where I'd rather just be happy and debt free and not have to worry about it, versus what might be 25 years from now.

Having said that, I'm still participating in my current new companies 401k plan because they match up to 6%. Just sure what do do with my old account.

Not having a mortgage or car payments is a big stress reliever. I'm so glad I did that. My one caution is that if THIS President and/or his followers stay in power, it's just gonna get worse as far as costs and taxes and other financial impacts. Way back in 1993-1994 Clinton's money czar lady, Teresa Ghilarducci, was advocating an outright 'one-time' assessment of 15% on EVERY retirement account in the country. This was the underlying goal of Hillary Clinton's Healthcare System revamp she wanted. THEY HAVE NOT FORGOTTEN ABOUT THOSE ACCOUNTS and as things get worse they're gonna come for them. It's the only source of ready money in this country that isn't government printed electronic scrip.

 

[The Old Jaybird]

You only lose if you sell and bail out. If you are in for the long term you have to ride the waves. Yes, my balances went down....a lot....in 2008, but I didn't lose a nickel because I didn't sell, kept putting more money in every month. I have more money in my retirement accounts now, than when I retired 8 years ago, And I have been taking RMD's and other withdrawals during that time. Like a well that never runs dry......exactly what you want in your "golden years".

 

[basstracker89]

Always plan for the future, you don't know how long you might live or what state the economy will be in. Diversify so that you have different avenues and resources to pull from. Roth accounts are king, we/you have more products to choose from than ever before. Having time on your side is king so that if you need to recuperate from a market drop or a investment mistake you made. If one starts an IRA Roth at 16 years old and keeps contributing though their life there's no reason in the world most people couldn't retire at 59 1/2. If the world gets to a point of no future, we have much larger problems to contend with. Just remember it''s not what you make, but what you do with it. Start early and always save something. Even if it's not much, it'll add up in time. My sister is 49yrs old and not a dime to her name. Lives hand to mouth and has her entire life. Now I/we/she has to figure out how to catch up some before retirement age. But that's not the biggest problem at hand. The biggest problem is trying to change old/poor habits at her age. I've already figured out she has $1000 a month she can save. So she can actually have something by 59 1/2. But she'll have to do the work and that's going to be hard for her.

 

[webicknell]

You only lose if you sell and bail out. If you are in for the long term you have to ride the waves. Yes, my balances went down....a lot....in 2008, but I didn't lose a nickel because I didn't sell, kept putting more money in every month. I have more money in my retirement accounts now, than when I retired 8 years ago, And I have been taking RMD's and other withdrawals during that time. Like a well that never runs dry......exactly what you want in your "golden years".

Back in 2008, all I had was a 401(k) and I never knew to change the investment strategy anyway... Weathered the storm while I slept.