Saving my Retirement Money from the economic collapse?

I hope I'm posting this in the right forum.

I've got a 401(k) through my work. Of course it depends on the stock market going up to keep the dollar amount high.

I can't just take the money out because of the tax penalties.

With all the talk of everything from the Shemitah year to a global economic collapse I'm wondering: where can I put my retirement funds so that they are safe from an economic collapse and yet there's no penalty to move the money?

a reply to: DrogoTheNorman

What good will money be in an economic collapse?

Cash in, buy things that you can use to survive! Can't eat worthless paper can you?

a reply to: DrogoTheNorman

The tax laws in the US are geared to keep your assets in the banking system. Professionals lead you to believe there is no other option. When you figure out why this is the case, you may reconsider the impact of those tax penalties.

I cashed out my IRAs and it took me two years to pass the break-even point. Now I have passive revenue from rental units owned outright.

Impossible. If the economy collapses, your 401(k) will become worthless rather quickly. Especially if the economy collapses to the point that the dollar becomes worthless like so many on ATS are predicting (and you are alluding to happen by talking about prophecy). If you are really terrified of such a thing (I'm not, I understand that the economy will likely have a system correction in the near future, but I don't think it will take the world with it), go out and buy gold, silver, or anything else that would have value in a cashless society.

Why don't you just use your money to game the system and buy some real estate or something when the correction happens? In other words, buy low, sell high. Right now prices are high, so don't buy now (you'll lose a lot more if you did and a correction hits). Wait until prices hit rock bottom again, THEN buy. That's literally how the super rich make all their money and keep it through the highs and lows of the economy.

My wife put her a pension in a special retirement bank account where it is insured. It doesn't make much interest, but if the stock market starts to crash, we do not have the time to be waiting for it to recover to bring the retirement back up. Since she has done that, the account she took it out of has increased about seven percent in the year, while she made about a half a percent in the bank. But if the stock market drops, it could take years to regain the money. In the 08 collapse, it took her five years to get the money back up to where it was.

She could have left some in their for growth, but she chose to pull it all out. We have to pay the tax when we withdraw it from the savings account. We will take some out if we need it during the year. All banks have those insured accounts, it is a sort of IRA account.

a reply to: DrogoTheNorman

If there is a financial collapse you can use it to wipe your butt!

a reply to: rickymouse

If that is a FDIC insurance policy or similar, it probably won't be worth the paper it is written on since that insurance money would not cover even a small percent of large, multiple failures. This even applies to credit unions, my "banking" choice.

As it stands, during a bad time, more money could be allocated into the FDIC, but it was intended for small fry, failures, not system wide. The first thing they would do in a pinch would be to offer pennies on the dollar to you.

About 3 months ago I took half of my 401-k out, the penalties are not that bad because you stand to loose a whole hell of a lot more than tax penalties if the economy tanks. good luck on your decision, Im considering taking all of it out, and investing the money in gold, silver, and many other physical items

My 401k has an option to shift the funds to a Money Market, it won't make any gains though...
trick is to do it before the crash.

a reply to: DrogoTheNorman

Since most plans don't allow in service withdrawals you will have to quit to get the money.

That leaves you with investing more conservatively. most plans have bond funds and also a money market fund which will hold up better than equities if we do get the crash. That said if we do get a crash and an eventual bounce your ongoing contributions will buy some shares very cheaply which will then turn out making you a bunch of money.

The thing is that there has always been an ebb and flow to the markets. One foot forward than a half a foot back. Losses have always been temporary and those that have just let things run through it all have done very well. Trying to time the ebb and flows has always been a losing proposition for most. if you are really worried put a big part of your balance into more conservative options and stay aggressive with the contributions. If you have an advisor on the plan call them and they will help you achieve this.

originally posted by: DrogoTheNorman
I hope I'm posting this in the right forum.

I've got a 401(k) through my work. Of course it depends on the stock market going up to keep the dollar amount high.

I can't just take the money out because of the tax penalties.

With all the talk of everything from the Shemitah year to a global economic collapse I'm wondering: where can I put my retirement funds so that they are safe from an economic collapse and yet there's no penalty to move the money?

Familiar with Bitcoin or good with computers, then Bitcoin may be something for you. Also, keep it in cold storage.

Or how about taking that to invest in property off the grid?

Sounds like you have already decided stocks are not a safe haven.
The Dow Jones closed up 113 points today .64 %
Is that a bad omen because 113 is a Chen prime?

a reply to: dreamingawake

Bitcoin. For an economic collapse. Good one.

a reply to: Krazysh0t

Your one of the more sharper knives in the kitchen draw.

Best sound advice yet.

a reply to: DrogoTheNorman

Ron Paul has a commercial on tv talking about collapse in September.

If I had money I would convert it to gold.

originally posted by: DrogoTheNorman
I hope I'm posting this in the right forum.

I've got a 401(k) through my work. Of course it depends on the stock market going up to keep the dollar amount high.

I can't just take the money out because of the tax penalties.

With all the talk of everything from the Shemitah year to a global economic collapse I'm wondering: where can I put my retirement funds so that they are safe from an economic collapse and yet there's no penalty to move the money?

I reckon superanuation as we call it here has become a scam. We are in the same boat as you. When I first joind up I was given some boxes to tick as to where I wanted my money to put eg high risk, medium and low risk but I have never been sent a similar form since.

Politicians are now eying these funds as a source of investment. In recent days I saw on 4 Corners, a TV program that most of the superanuation funds are going to invest in new coal mines when all the signs are that coal has turned the corner as an investment and is now on its way south.

It just so happens that the federal govt backs the coal industry and will allow it open new mines. What does that tell us?

I bet I'll struggle to refocus "my superanuation' into a lower risk investment type. We'll soon see.

Put some of your investment in precious metals. Historically, go nowhere but up.
Of course, unless you actually HAVE the gold/silver, etc. in your possession (meaning you also have to keep it safe)...may not mean squat when all the computers go dark and governments seize everything anyhow.

a reply to: InverseLookingGlass

Alan Greenspan the long time Fed chairman recently PMed some of his "truther group" followers.
If you recall in one of his last speeches in 2005 he cautioned about a housing price bubble and outright "fraud" in some local real estate markets.

Greenspan said that since WW2 he had watched 10 recessions and 10 recoveries and in all 10 cases new housing starts lead the way to recovery. He went on to say that in 2009 that didn't happen. They stopped the interview there.



In 2015 housing starts are still historically running below average, millennials are still renting, and without strong demand we are not likely to see much inflation.

Vacancy rates on rental property are starting to tighten in most markets, and the cost of renting has increased to the point where many renters would rather own if they could.

There was another related story today about new regulations that are restricting some banks ability to shuffle foreclosed properties around. Some of the foreclosed properties had been bought 4 and 5 times at different auctions by different banks "servicing the mortgages".

originally posted by: Slichter
a reply to: InverseLookingGlass

Alan Greenspan the long time Fed chairman recently PMed some of his "truther group" followers.
If you recall in one of his last speeches in 2005 he cautioned about a housing price bubble and outright "fraud" in some local real estate markets.

Greenspan said that since WW2 he had watched 10 recessions and 10 recoveries and in all 10 cases new housing starts lead the way to recovery. He went on to say that in 2009 that didn't happen. They stopped the interview there.

In 2015 housing starts are still historically running below average, millennials are still renting, and without strong demand we are not likely to see much inflation.

Vacancy rates on rental property are starting to tighten in most markets, and the cost of renting has increased to the point where many renters would rather own if they could.

There was another related story today about new regulations that are restricting some banks ability to shuffle foreclosed properties around. Some of the foreclosed properties had been bought 4 and 5 times at different auctions by different banks "servicing the mortgages".

So what is your take on that? Within 5 years will renting become expensive enough that renters will start buying the "true" recovery will begin?

a reply to: DrogoTheNorman

How would I know?
The recession in the European economic theater hasn't played out yet.
Assuming a quick settlement to the Greek/southern Europe debt crisis at least a year and a half.
Part of the problem is that since 2005 some of the construction industry went bankrupt and never came back.

On the positive side though, in the states the government must be comfortable with the current level of house prices.
Otherwise they would not be putting pressure on banks to get the foreclosures off their books.