SOCIAL: money trouble!

[palak joshi]

all good advice! but maybe i forgot to add one very big piece of information
(sorry)!
hes a student now! which means no more contribution from his or his
employers part! so his money wont be growing...in the sense of
contribution....if the market remains like this for a few more months
...wont he lose it all?
palak.


On 10/20/08, Adrian Cotter <drainage at gmail.com> wrote:
>
> Generally 401ks give you a choice on investments you can make, most
> financial advisors I have known have counseled having a spread of
> different investments, some in lower return but safer, to high return
> but riskier investments. I would look at those options (and the one
> Mike mentions) before doing anything else.
>
> If you take the money out of the 401k you pay the taxes, and also pay
> a 10% penalty -- which would be losing another 10% in an instant.
>
> Adrian
>
> On Mon, Oct 20, 2008 at 10:39 AM, Amandeep Jawa <deep at deeptrouble.com>
> wrote:
> > 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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> >
> > ----------------------------------
> >
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> >
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