Has anyone here cashed out their retirement accounts?

[Mahkato]

As the specter of a systemic crisis becomes more and more plausible, I'm wondering if I should take the tax penalty and draw down or cash out my retirement accounts. Paying the penalty might be a great deal less of a hit than holding my account through a major crash.

I filled out the forms to do this a few times, but always chickened out and shredded them.

 

[RonPaulIsGreat]

You can buy metals with an IRA account. I don't know if that has to be held by a specific vault or whatnot, but seems better than GM stock.

 

[Cleaner44]

Mmmmm... precious metals

 

[TheNcredibleEgg]

Even if there is a major correction (or crash) it will be in nominal terms.

And once that happens Bernanke will flood the markets with vast sums of fresh liquidity - which will erase those nominal losses in short order.

So unless you are near retirement, you will recover - nominally speaking. And if you have your money in foreign stocks or at least American stocks with heavy foreign exposure - you should do ok.

If you do cash out tho - and there is a crash - be quick to put the money back to work in something tangible. The people that will be wiped out the worst will be the ones holding bonds or cash.

 

[Michael P]

"Good companies will maintain their value even if our currency of trade is sharks teeth."

-Warren Buffett