<div>all good advice! but maybe i forgot to add one very big piece of information (sorry)! </div>
<div>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? </div>
<div>palak. <br><br> </div>
<div><span class="gmail_quote">On 10/20/08, <b class="gmail_sendername">Adrian Cotter</b> <<a href="mailto:drainage@gmail.com">drainage@gmail.com</a>> wrote:</span>
<blockquote class="gmail_quote" style="PADDING-LEFT: 1ex; MARGIN: 0px 0px 0px 0.8ex; BORDER-LEFT: #ccc 1px solid">Generally 401ks give you a choice on investments you can make, most<br>financial advisors I have known have counseled having a spread of<br>
different investments, some in lower return but safer, to high return<br>but riskier investments. I would look at those options (and the one<br>Mike mentions) before doing anything else.<br><br>If you take the money out of the 401k you pay the taxes, and also pay<br>
a 10% penalty -- which would be losing another 10% in an instant.<br><br>Adrian<br><br>On Mon, Oct 20, 2008 at 10:39 AM, Amandeep Jawa <<a href="mailto:deep@deeptrouble.com">deep@deeptrouble.com</a>> wrote:<br>> Palak -<br>
> One could fill books with everything I don't know about finances (ummmm....<br>> wait they have they're called "finance books"). But my fervent hope is that<br>> 401Ks are designed to be valuable if you ignore short term fluctuations in<br>
> value - in the long run they are always worth the investment because over<br>> decades the stock market is always up.<br>> I this means I agree with John McCain that the "fundamentals of our economy<br>> are strong" :-)<br>
> with my head in the sand....<br>> 'deep<br>><br>><br>> On Oct 20, 2008, at 1:25 PM, mike kosim wrote:<br>><br>> As far as I know, the 401K is a tax designation for a block of money. A lot<br>> of places who manage your block of tax-free money allow you to take it out<br>
> of stock and leave it in cash inside that account so that it is still in the<br>> 401K, but he won't have it in stock (he'll have it in cash).<br>> He should call up the 401K managers to check if he can do this. Depending<br>
> on his work, they may have someone internally who fields these kinds of<br>> questions or someone that is part of an outside agency that is contracted by<br>> his work. Either way, I think there is a solution where he can 1. not pay<br>
> the tax hit AND 2. get it out of the stock he has.<br>> my amateur opinion only.<br>> mike<br>><br>> palak joshi wrote:<br>><br>> dear social,<br>><br>> so a friend of mine had about 13,000$ in his 401k plan. He got a letter<br>
> yesterday saying he is on -12.8% and has lost about 3000$. He kind of lost<br>> 2000$ in one week. This way he will lose all his money. He cannot NOT INVEST<br>> his money in an 401K right? Can anyone tell me if its wise to take the money<br>
> out, pay the penalty in taxes and put it in a safe savings account? I guess<br>> people who have more money can wait for the economy to get better but with<br>> small amounts its not worth taking the risk right?<br>
><br>> thank you.<br>><br>> palak.<br>><br>> ------------------------------------------------------------------------<br>><br>> _______________________________________________<br>><br>> Social mailing list<br>
><br>> <a href="mailto:Social@lists.deeptrouble.com">Social@lists.deeptrouble.com</a><br>><br>> <a href="http://lists.deeptrouble.com/listinfo.cgi/social-deeptrouble.com">http://lists.deeptrouble.com/listinfo.cgi/social-deeptrouble.com</a><br>
><br>><br>><br>> _______________________________________________<br>> Social mailing list<br>> <a href="mailto:Social@lists.deeptrouble.com">Social@lists.deeptrouble.com</a><br>> <a href="http://lists.deeptrouble.com/listinfo.cgi/social-deeptrouble.com">http://lists.deeptrouble.com/listinfo.cgi/social-deeptrouble.com</a><br>
><br>><br>><br>> ----------------------------------<br>><br>> Amandeep Jawa<br>><br>> ----------------------------------<br>><br>> deep AT deeptrouble DOT com<br>><br>> 937 Valencia St.<br>
><br>> San Francisco, CA 94110-2320<br>><br>> personal: <a href="http://www.deeptrouble.com">http://www.deeptrouble.com</a><br>><br>> political: <a href="http://www.sflcv.org">http://www.sflcv.org</a><br>
><br>><br>><br>> _______________________________________________<br>> Social mailing list<br>> <a href="mailto:Social@lists.deeptrouble.com">Social@lists.deeptrouble.com</a><br>> <a href="http://lists.deeptrouble.com/listinfo.cgi/social-deeptrouble.com">http://lists.deeptrouble.com/listinfo.cgi/social-deeptrouble.com</a><br>
><br>><br>_______________________________________________<br>Social mailing list<br><a href="mailto:Social@lists.deeptrouble.com">Social@lists.deeptrouble.com</a><br><a href="http://lists.deeptrouble.com/listinfo.cgi/social-deeptrouble.com">http://lists.deeptrouble.com/listinfo.cgi/social-deeptrouble.com</a><br>
</blockquote></div><br>