The future of 401k

[BFranklin]

I'm 24 and have about 5k in my 401k, 5 ounces of gold, 10k in my checking account

Im worried about the dollar collapse and was wondering what I should do with my 401k? Take it out? And the 10k cash should I buy more gold?


I didnt know where else to post this, the future of the economy is something we're all worried about.

 

[Mr. White]

I'm no expert by any means, but with only 5k in your 401k, I'd say leave it alone.

 

[Wyurm]

I'm 24 and have about 5k in my 401k, 5 ounces of gold, 10k in my checking account

Im worried about the dollar collapse and was wondering what I should do with my 401k? Take it out? And the 10k cash should I buy more gold?


I didnt know where else to post this, the future of the economy is something we're all worried about.

Well, I'm not saying they offer the best advice, but you could either post this in the real money section, general politics and other section or read http://goldismoney.info/forums/index.php until the first through third of March. (they only allow registration the first three days of the month to prevent spam).

 

[Edu]

Can't you invest it any way you want? Maybe buy some gold stocks? If you think it's going to go up that is.

 

[IChooseLiberty]

You're off to a good start!

If there are any things that you must buy to live I'd recommend buying them now. Food, clothing, around the home things, ect. Stock up. Beef up your home and personal security as well.

But assuming you've already done that.... I'd recommend reallocating to super conservative funds in your 401(k) for now (timing is key here, hopefully you did this already back when the markets were ~13k). Some will say to rollover your 401(k) to gold and I thought about that myself but it seems a bit too risky with high maintenance fees for too much work for such small dollar amounts like ours.

I'd recommend getting as much money as you can out of the bank and investing in silver. If you want to diversify further, I'd recommend going into foreign currencies (namely Euros). At some point, it will be fruitful to sell your gold, silver, and foreign currencies for Federal Reserve Notes to invest in foreign economies. Someday in the future it will also be a good time to buy domestic stocks but that is a long way off imo.

These are just my opinions and with any investment there is always a risk of loss. Make sure you research any investment you make thoroughly before you buy.

 

[Brian]

Your 401K will have a 10% penalty if you take it out early, and that is on top of your incremental tax rate, ie the tax you would have to pay if you earned the income and normally paid tax on it. This is an option if you just want to take the tax hit now. If you still work for the Company that you earned the income in your 401K, I believe there is a law that you can't take it out (I might be wrong on that one).

Depending on your fund investment options, purchase commodity based funds, but absolutely keep it out of USD.

One option is taking out a loan to yourself for half your 401K balance. You can then buy gold, silver, etc. and maintain your wealth, and pay the loan back over time in *cheaper* dollars.

Also, check out the emergency distribution rules. If you are creative you can create something. Do you have emergency health care bills? A sickness or death in the family?