“We will be like Zimbabwe if people don’t wise up by the 2014 election.”
I think more and more people are beginning to think we won’t be able to vote our way out of the mess we’re in. Take your money out of the 401(k), pay the penalty and buy hard goods... things that will be valuable even if (when) the economy goes into the tank. My wife (a non-drinker) is stockpiling wine. I just bought some tobacco seeds. There are “other” things we don’t talk about too. We have seven people living in this old house and all but the two grandkids (2 and 6 years old) shoot well. I sincerely hope we’re not tested but if we are, I also hope we pass the test.
Unless your wife’s storing high-end collectible wine, they won’t last forever. White wines might start turning 1-2 years after bottling. Reds might start turning bad after 3 years. (I work part-time at a winery.). Your mileage may vary, but just be aware.
It doesn't make any sense if you have real money in it. The object of the game is to pay the least amount of taxes as you can. A working stiff Californian would end up paying close to 50% in taxes and penalties on cashing in a 100K IRA. A high roller would end paying 60% if not more. The way to go would be a 72T distribution.