.

[old fashioned]

 

[AnnaRaven]

DH will be 50 this year, I'm 51. If we were just starting out in our 20's or even 30's I'd agree to roll it over since we'd still be young enough to ride out the uncertain economic times going on right now. Personally I don't see a positive future for this country for atleast 15-20 years down the road and we don't want what little money we have to become worthless in someone elses control and us being too old to recoup it

If you rolled it into an IRA at a good broker (such as optionshouse, which is what we use), you could use it to invest in whatever securities you want and avoid the penalties and tax hit, as long as you don't commingle it with other money. And it's not under somebody else's control.

Just an idea.

ETA: Optionshouse may have specials (free trades?) for rolling over an IRA. (Use this link if you want: http://oh.tellapal.com/a/clk/6Z9J )

 

[FarmerChick]

I don't see my money becoming worthless at all in 15-20 years.
What I see is that I will need that money very much in 15-20 years

just different ways of seeing things I guess.

 

[Marianne]

If it was me, I'd pay off the debt (taking the hit on the taxes) and then roll over the rest (to avoid the hit on those taxes).

It'd be easier to make any potential move with no bills and a bit of cash in the bank, ya know? I'd do what you're thinking. JMO.

 

[ohiofarmgirl]

DH will be 50 this year, I'm 51. If we were just starting out in our 20's or even 30's I'd agree to roll it over since we'd still be young enough to ride out the uncertain economic times going on right now. Personally I don't see a positive future for this country for atleast 15-20 years down the road and we don't want what little money we have to become worthless in someone elses control and us being too old to recoup it

If you rolled it into an IRA at a good broker (such as optionshouse, which is what we use), you could use it to invest in whatever securities you want and avoid the penalties and tax hit, as long as you don't commingle it with other money. And it's not under somebody else's control.

Just an idea.

ETA: Optionshouse may have specials (free trades?) for rolling over an IRA. (Use this link if you want: http://oh.tellapal.com/a/clk/6Z9J )

you're only 50!?!

wow. i'd roll it over into a cash account. any brokerage house has this option and you can be insured up the $250K. there's no reason to take the hit on the taxes. when you decide what to do with it you can take some of it out. taking ALL of it out and getting hit with those taxes doesnt make sense.

"rolling over" is just a matter of printing out a piece of paper (their form), signing it, and getting it back to them. they take care of the rest. you can manage it (put in CD's, or stocks, or bonds, or good old cash) just like you would if you took it out and put it in the bank. the key is to keep the money under the umbrella of a "401" to avoid the taxes - paying unnecessary taxes will make that money worthless. the penalties are up to 30% and it might make your income taxes go up.

remember you dont have to do all or nothing. i would get some professional advice (both what to do and about the taxes) before you did anything like this. dumping a 401 is not a good idea unless you have a real emergency.

 

[Wannabefree]

Whatever you do you have to make sure your money is making money for you. Make it worth it. Pay off things that are working against you with interest. Who knows if the dollar will even be worth a quarter next week?! Gold is no better. The financial system is broken, get what you can done with what you've got while it is still worth something. Stacking it in the bank and watching it's value decline is counter productive. The only thing going to be of value in the next few years is tangible goods(food, energy, housing, etc.) IMO. Our paper dollars will be okay to start fires or wipe with in the next few years, but not much else. So unless you have a shortage of tissue or firestarters, I'd dump it on the debts (including the house) and work with what I have left. That's just my opinion, but it is what I intend to do from here on out. Things are getting worse, not better, and the one thing that remains the most volatile is the actual value of our money. I plan on using every bit I can get my hands on while it is still worth something. Call me crazy if ya want, but I don't see it being worth anything in the upcoming couple of years.

 

[abifae]

I don't see my money becoming worthless at all in 15-20 years.
What I see is that I will need that money very much in 15-20 years

Depends if the Feds "rescue" us by printing enough money to pay off our debts

 

[rhoda_bruce]

I vote for paying off everything you can, becoming more SS and figuring how you will keep the payments up if TSHTF (with whatever is left). That is assuming banks are still functioning. If we truely do have a total global economic colapse, as some predict, there is no telling how it will affect us. How is a bank gonna kick you out, when there is no one available to assume your notes or pay the bank full price for your home? And how is a bank going to kick you out when they have no money and can't even pay their employees....its the employees that will be doing the kicking, I think.
DH and I are considering cashing in, but he is thinking on gold. I can't see that I will be able to use gold in any recipes I have so I am not thinking it will do much to take care of us or the kids. If someone breaks in my house to steal my dried potatoe flakes, I would rather plant bullets over throwing a big hunk of gold at them, but thats just me. And believe me; I'm not itching to do it. What I am itching for is to unplug everything and start being tough, but I think I'm on my own there....I mean, ya'll can see my computer is still plugged in. Need more family support.
I know a bit about IRA's, and I understand about rolling over and saving on taxes etc, but what good is that if it all flops? I wish DH would cash in his retirement, pay off everything we owe (there would be enough left to fence in the rest of the yard plus tackle a few slightly major projects) and I wish we had the choice to not pay social security...its doomed anyway. I guarantee we could take better care of our money than the government and the investors. We do a fairly good job bartering and selling our side line farm goods anyway.

 

[FarmerChick]

I don't see my money becoming worthless at all in 15-20 years.
What I see is that I will need that money very much in 15-20 years

Depends if the Feds "rescue" us by printing enough money to pay off our debts

I choose not to believe it will be a total collapse and mayhem insues and the dollar will be worth nothing.


and I fear for those who will base their financial futures on this thinking, cause crappola, when it does/if not happens, all those financial losers will be coming after me personally to steal or whatever cause they thought like that cause they 'thought' like they did. And they don't have a darn dime in the bank to rely on.

 

[abifae]

There's a difference between burning your money in the fear it will be useless and investing in things that will make your future better. I find it very odd that you are so against SS planning, yet you stay on this forum.