SOCIAL: money trouble!

[Amandeep Jawa]

Palak -

One could fill books with everything I don't know about finances  
(ummmm.... wait they have they're called "finance books").  But my  
fervent hope is that 401Ks are designed to be valuable if you ignore  
short term fluctuations in value - in the long run they are always  
worth the investment because over decades the stock market is always up.

I this means I agree with John McCain that the "fundamentals of our  
economy are strong" :-)

with my head in the sand....
'deep



On Oct 20, 2008, at 1:25 PM, mike kosim wrote:

> As far as I know, the 401K is a tax designation for a block of  
> money.  A lot of places who manage your block of tax-free money  
> allow you to take it out of stock and leave it in cash inside that  
> account so that it is still in the 401K, but he won't have it in  
> stock (he'll have it in cash).
> He should call up the 401K managers to check if he can do this.   
> Depending on his work, they may have someone internally who fields  
> these kinds of questions or someone that is part of an outside  
> agency that is contracted by his work.  Either way, I think there is  
> a solution where he can 1. not pay the tax hit AND 2. get it out of  
> the stock he has.
> my amateur opinion only.
> mike
>
> palak joshi wrote:
>> dear social,
>> so a friend of mine had about 13,000$ in his 401k plan. He got a  
>> letter yesterday saying he is on -12.8% and has lost about 3000$.  
>> He kind of lost 2000$ in one week. This way he will lose all his  
>> money. He cannot NOT INVEST his money in an 401K right? Can anyone  
>> tell me if its wise to take the money out, pay the penalty in taxes  
>> and put it in a safe savings account? I guess people who have more  
>> money can wait for the economy to get better but with small amounts  
>> its not worth taking the risk right?
>> thank you.
>> palak.
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----------------------------------
Amandeep Jawa
----------------------------------
deep AT deeptrouble DOT com
937 Valencia St.
San Francisco, CA 94110-2320

personal: http://www.deeptrouble.com
political: http://www.sflcv.org



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