They want to get their money out before the stock market collapses!
Super-Character-5290 on
This is what happens when your emergency fund gets wiped out by inflation. The system is failing regular people.
DukeStamina on
If done for emergencies such as health issues or even putting food on the table, it’s a sad but necessary thing to do.
If done because of a decline in the stock market, its the wrong thing to do, especially if you are years away from retirement. The ups and downs of the market with steady investing is beneficial to higher overall earnings than saving at a flat rate. (See dollar cost averaging)
Agreeable_Job4878 on
And what are they going to do with it? Buy a GIC paying 2%? buy gold? Too late. Buy crypto? It’s doing worse.
papibigdaddy on
If you’re not 55, you pay a steep penalty every time you withdraw. There was a little breathing room during the height of Covid. It’s not a good idea to dip into your retirement account, but the majority of this country is paycheck-to-paycheck, private equity and the ultra-rich are pricing people out of their own communities, buying a house is not possible for most people, Eversource and National Grid are charging out the ass with impunity, and companies are running under “you will own nothing, fuck you”. The DOE is being stripped, that means sports and arts are gonna disappear all over the place. It’s gonna be tough for people not to dip into their funds. Don’t even get me started on healthcare and nutrition.
Pad_TyTy on
I’ve used the hardship loan option before, and it helped me as I stabilized my balance sheet, but people opting to full withdrawals to make ends meet seems like last resort actions.
The consumption economy has been an overextended bubble for a long time, and the current administration has no tools left (nor the inclination) to provide any meaningful assistance in putting the brakes on a systemic collapse of the economy.
Anyways, I love my girlfriend and I still have a job for now, so I guess not everything is bad.
punkin_sumthin on
They’ll beat the big market drop that is coming.
BigDumbandSexy on
I wonder fuckin why…
Malaix on
401ks were failing to get boomers, the richest generation, through their retirement years before all this noise started.
Can’t imagine what the millennial retirement era is going to look like.
shhhhhhark on
I work at a hospital in revenue/billing. My hospital was barely solvent before this idiot took office, hospitals were required to pay back their COVID loans.
My organization is merging with a larger in less than a year. Best case scenario I lose all my seniority, saved up pto and keep my job. Worst case I get laid off.
I’ve been looking for another job but it’s tough, hospitals are losing doctors and everything is slowing.
My point being, I may be forced to join this group if I am laid off. It’s going to take years to recover from this and I’m 53……good times
Lefty1992 on
If you’re young, don’t pull your money out! Leave it in and ride it out unless you absolutely need the money.
alfooboboao on
how do you go broke? slowly, then all at once
Calcutec_1 on
401k is retirement right ?
In Europe you can’t touch that money until 60-67(depending on countries)
Mean_Rule9823 on
I mean at the rate its going ww3 will be here before retirement lol why not live now.
TheCzar11 on
Made mistake of even looking at my 401k. We are quite a ways down from the highs. Ugh…and it’s all self inflicted.
JackBurton___Me on
The Trump era in full effect.
futuriztic on
Magaaaa
Explosivo87 on
I literally just did a hardship withdraw to cover rent. Hoping that’s the last time I have to do that but glad I had the option for now to not be homeless.
doinbluin on
People in this thread have absolutely no clue that more than half of Americans don’t have a 401ks.
200 million Americans.
RespectTheTree on
[ Removed by Reddit ]
gojo96 on
Not new. They’ve been saying this for the past 10 years.
Burwylf on
They’re going to get murdered by inflation
Mission-Meaning377 on
Last 3 years have been such an unprecedented run up, it’s wise to take some of the money off the table.
Venusian2AsABoy on
I liquidated mine a year ago, and just took a year long vacation at age 41 after my kid moved out and my job was ruined by AI. Starting in a new field next week. Everyone deserves a year or two off NOW, not in 2050 or whatever.
emb4rassingStuffacct on
Can we have a class action lawsuit against Trump voters for the damage they’ve done to this country?
Gamebird8 on
Bank Run?
lvnlrg831 on
I did. Had to or I couldn’t keep up with my bills. Sucks but at least my bills are paid for now. My new retirement plan is to win the lotto. Wish me luck.
RociBuldidi on
It’s amazing how quickly we can go from consequetive years of record 401K growth to significant losses.
All Trump had to do was nothing
CharlieBravo74 on
Americans are making record numbers of mistakes then.
My step father did this back in 2009. I’ll never forgive him for it. He ruined their financial future in retirement. He’s 81, my mother is 76 and has a lot of health problems now and they barely scrape by.
29 Comments
They want to get their money out before the stock market collapses!
This is what happens when your emergency fund gets wiped out by inflation. The system is failing regular people.
If done for emergencies such as health issues or even putting food on the table, it’s a sad but necessary thing to do.
If done because of a decline in the stock market, its the wrong thing to do, especially if you are years away from retirement. The ups and downs of the market with steady investing is beneficial to higher overall earnings than saving at a flat rate. (See dollar cost averaging)
And what are they going to do with it? Buy a GIC paying 2%? buy gold? Too late. Buy crypto? It’s doing worse.
If you’re not 55, you pay a steep penalty every time you withdraw. There was a little breathing room during the height of Covid. It’s not a good idea to dip into your retirement account, but the majority of this country is paycheck-to-paycheck, private equity and the ultra-rich are pricing people out of their own communities, buying a house is not possible for most people, Eversource and National Grid are charging out the ass with impunity, and companies are running under “you will own nothing, fuck you”. The DOE is being stripped, that means sports and arts are gonna disappear all over the place. It’s gonna be tough for people not to dip into their funds. Don’t even get me started on healthcare and nutrition.
I’ve used the hardship loan option before, and it helped me as I stabilized my balance sheet, but people opting to full withdrawals to make ends meet seems like last resort actions.
The consumption economy has been an overextended bubble for a long time, and the current administration has no tools left (nor the inclination) to provide any meaningful assistance in putting the brakes on a systemic collapse of the economy.
Anyways, I love my girlfriend and I still have a job for now, so I guess not everything is bad.
They’ll beat the big market drop that is coming.
I wonder fuckin why…
401ks were failing to get boomers, the richest generation, through their retirement years before all this noise started.
Can’t imagine what the millennial retirement era is going to look like.
I work at a hospital in revenue/billing. My hospital was barely solvent before this idiot took office, hospitals were required to pay back their COVID loans.
My organization is merging with a larger in less than a year. Best case scenario I lose all my seniority, saved up pto and keep my job. Worst case I get laid off.
I’ve been looking for another job but it’s tough, hospitals are losing doctors and everything is slowing.
My point being, I may be forced to join this group if I am laid off. It’s going to take years to recover from this and I’m 53……good times
If you’re young, don’t pull your money out! Leave it in and ride it out unless you absolutely need the money.
how do you go broke? slowly, then all at once
401k is retirement right ?
In Europe you can’t touch that money until 60-67(depending on countries)
I mean at the rate its going ww3 will be here before retirement lol why not live now.
Made mistake of even looking at my 401k. We are quite a ways down from the highs. Ugh…and it’s all self inflicted.
The Trump era in full effect.
Magaaaa
I literally just did a hardship withdraw to cover rent. Hoping that’s the last time I have to do that but glad I had the option for now to not be homeless.
People in this thread have absolutely no clue that more than half of Americans don’t have a 401ks.
200 million Americans.
[ Removed by Reddit ]
Not new. They’ve been saying this for the past 10 years.
They’re going to get murdered by inflation
Last 3 years have been such an unprecedented run up, it’s wise to take some of the money off the table.
I liquidated mine a year ago, and just took a year long vacation at age 41 after my kid moved out and my job was ruined by AI. Starting in a new field next week. Everyone deserves a year or two off NOW, not in 2050 or whatever.
Can we have a class action lawsuit against Trump voters for the damage they’ve done to this country?
Bank Run?
I did. Had to or I couldn’t keep up with my bills. Sucks but at least my bills are paid for now. My new retirement plan is to win the lotto. Wish me luck.
It’s amazing how quickly we can go from consequetive years of record 401K growth to significant losses.
All Trump had to do was nothing
Americans are making record numbers of mistakes then.
My step father did this back in 2009. I’ll never forgive him for it. He ruined their financial future in retirement. He’s 81, my mother is 76 and has a lot of health problems now and they barely scrape by.