After trying to retrieve part of my 401 k 3 months ago it took Fidelity 2 months before they actually gave me the cash.
What if there is a run on the 401k's-these companies only carry so much reserve,much like banks.Will you be able to recover any or all of it? And by
the time you get it will the dollar be worth anything? If you allow it to stay will it just disappear into a black hole?
Anybody else having trouble getting access to their funds?
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reply to post by GoalPoster
Your 401k is not insured by FDIC and even if it was FDIC funds can in no way cover all the withdrawals.
If you transfer it to a money market do you trust the dollar to hold its value for long?
The best option IMO is to get it out and use it to buy any commodity that will continue to have real value and will most likely increase in value(i.e.
gold,silver,oil,food,generators,weapons).
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In short, no.
401K's are group investment in the stock market, securities, etc.
My wife's financial adviser for her 401K convinced her to place the bulk of her portfolio in the NASDAQ back in the late 90's. Before it tanked and
just about wiped her out.
I tried to talk her out of it as I had my distributions pretty much scattered around, with about a quarter of my money in foreign markets, so I hardly
felt a whiff when the high tech stocks hit the skids.
The idea of the foreign market approach was that it added a little buffer when the US market had the hiccups.
Today, we're seeing ALL the markets freaking out so that buffer is worthless.
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reply to post by seabisquit
you need to refine your question... Are 401k's Safe ?
yes a 401 k will continue to exist...because no matter what the declining value is --- the management fee is still deducted from your balance before
anything else is calibrated.
will a 401k be a safe, & money growing use of your savings?
Nope, its not designed to be.
~unless~ your 401k was in a fund specializing in downturns like some 'bear' funds specialize in.
A 'bear' fund bets that stocks lose value---
you sure haven't been hearing about those funds lately...have you.??
see: www.fool.com...
biz.yahoo.com...
(this page shows the tickers & returns for some major 'bear' funds)
if your so inclined to switch a portion of your 401k into one of them
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Originally posted by St Udio
reply to post by seabisquit
A 'bear' fund bets that stocks lose value---
you sure haven't been hearing about those funds lately...have you.??
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reply to post by St Udio
Shorts have been suspended ;if you have been keeping up with the news you would have known that.
Yes, maybe I should have titled this thread can you get your 401k out when you want to. If i had a problem 3 months ago what do you think it is like
now to withdraw your money?
[edit on 10-10-2008 by seabisquit]
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I would say no, they arent very safe. You will lose money in them. My mother just lost $9000 today on her 401k, and she's been putting into it since
i'd say the late 80's....Shes an RN that makes roughly $35 an hour, working 60 hrs a week, so every year she puts a thousand or so into it. And to
have $9000 of her hard earned money taken away from her b/c of this recession is ridiculous! Its robbery to the core!
So hell no, 401k's are not safe.
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It's only as safe as the stocks you are picking. Ask the Enron folks about that.
Seriously, if you have diversified your assets, your taking a much lesser hit than someone focused on one stock. If you are using a bond fund, chances
are, you are at least still breaking even.
Up to a couple of weeks ago, my losses were very manageable. I have money overseas in Europe and Chinese markets. Everything is melting now and I have
lost about 22%. I will kick money back into the American market when things improve to where I feel comfortable as America will recover before the
others.
Read about every option you are offered and make a plan. You are responsible for your own money. Good luck...
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