RE: “5. Cash out your 401k’s now.”
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Question: With all the talk last year about dipping into peoples’ 401Ks (that talk has settled down but could pop up again at any time), do you also recommend cashing out IRAs, or are they less easily ‘hit’ than the 401K? What’s the difference, really?
When I left my former employer, I converted 401K to an IRA and certainly do not want the feds to gain access.
I’m old enough to cash out without penalty (besides taxes) but had not planned to do that for at least 5 years. What do you think?
I cashed mine six months ago and went to a Credit Union...Exceptional service! after years of dealing with banks..the whole experience was refreshing beyond measure. They were surpurb! Highly recommend a Credit Union..and your funds are still insured.
CaliforniaCon, you are lucky that you are able to cash out w/out penalty. Even if they don’t dip (which they will, because its the only reserve of liquidity that could get near bailing out SS), you will payer lower tax rates this year than you will before they begin jacking up taxes to pay for this mad spending. I am not a financial advisor, but i do have common sense and foresight. I have quite a few years to go, but there is no doubt that they will be jacking up taxes, which your 401k/IRA will be subject to, even if they don’t steal your IRA.