To Stay Safe, Sell Stocks?

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Won't there be a price (approx. 20% in income taxes) for pulling out of your 401K or 403B? And an additional 10% early withdrawal for those under age 59?
Is it worthwhile to move your money with these kinds of penalties??

kaybtt of CA 12:22PM July 06, 2010

...well, what a bunch of losers the Rest of us are...I knew I should have bought stock in Gold 90 yrs ago...

Sharon of NV 6:08PM October 05, 2009

I am a teacher who will be retiring in one year and four months. (BUT WHO IS COUNTING?..HA! HA!) Retiring in a comfortable fashion (I know comfortable is different for everyone)is not difficult, it takes discipline - something many people do not have. Before I tell you how I expect to be comfortable please let me tell you, I was poor as a child(parents divorced, welfare, etc. - you know) went to a state school and started work. With not a dollar, I became a substitute teacher, and worked at various part-time jobs for four years and then started a full time teaching job. During this time I married, had two children, had used cars, and paid myself first. No matter what we made, I saved maybe 5% in the beginning and then & then 7%, then 10%. Some of this money went to a 403B fully funded by me. I also bought a Roth for my husband and myself even though most people would say max out the 403B for the tax break before you do the Roths. I'm glad I didn't listen. I also bought IBONDS- many are paying me 3% to
8& to this day - NICE! I also bought into a program called Retirement Plus and had 11% taken out for retirement instead of the 7% most teachers and people in Social Security pay. Over the years, I brought coffee from the house and my lunch form home. I didn't have ( can afford them now)the expensive pocketbooks, new car, nails done, facials, gym membership for example, that the STUDENTS and others had. As a result of this discipline, I now can retire in a comfortable fashion and I believe I am healthy (to be honest - except for some stress - oh well). My children are in college and doing fine. If you are reading this and you are in your 20's,30's or 40's, I really believe if you are lucky to have decent health and you show some discipline, anyone in our country can look forward to a very nice retirement. I personally like 1/3 in a house, 1/3 in the market and 1/3 in IBONDS and cash. It workes for me!!!!

joyce of MA 4:00PM July 27, 2009

A professor!!! Ho Ho Ho
History does not support this NUT.
ATTN: Students read, ask for a refund

Robert Ewing of TX 5:16PM July 17, 2009

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Aboutmusdj of MD 1:22AM July 17, 2009

Whatever you invest in the stock market, do it with an on line broker (i.e. ScotTrade) and put a trailing stop on every stock.
The axiom is that if a stock drops 10%, it will drop farther. I used 7%, which limited my loss to 7%. When all my stocks sold in the fall of 2008, I had made some nice gains, since all were up 15% or more. So I netted a minimum 8% gain, not a 40% loss.
This isn't rocket science.

W. L. Head of NC 5:22PM July 14, 2009

100% wrong from beginning to end. People with paper losses should turn them into realized losses by selling when the stocks are down? That's the stupid mistake too many people have made recently. Who do you think is buying the stocks that you're selling? Sensible people who will get rich when those stocks go up. And TIPS as protection against inflation? Why do you think the interest rate on TIPS is adjusted constantly to compensate for the inflation adjustment? Do you really think the government is giving away free money to anyone gullible enough to buy TIPS? The overall return is no better than on ordinary government bonds. This article doesn't warrant wasting more time pointing out all its ridiculous fallacies.
This guy reminds me of some of the tenured professors I had in school. Their job security removes all incentive to try to be competent. Fortunately some of their students (me included) were mature and intelligent enough to ignore their nonsense, and work and study on their own to get an education in spite of, not because of, these "tenured professors". The tenure system is probably the number one reform that our higher education system needs.

Not yet brain dead of OR 3:40PM July 14, 2009

This whole article sounds lilke an argument for government guarantee, and therefore control, of all your assets. Aside from the fact that the stock market has historically been the best hedge ever against inflation, every point in this article sounds uncomfortably like socialism. I am not willing to give the government, which is ultimately the source of inflation, that much control over my assets, and I believe it is a bad idea for anybody else to do that.

Len of Wilmington of DE 2:29PM July 14, 2009

Likely if you are a member of congress you are safe. At least until election occurs. Otherwise, like everyone else you are guessing. But doctors should have some security as people are always afraid they will die and so will give up some money to saves their lives. Along with these things you can guess what is safe and what is less safe. Working for General Motors would be not safe. As for investing that is the same as Las Vegas. But most people will be craping out. All this will end some day but likely to happen again sometimes later. Not everyone went down with the Titanic but enough people did. Who knows whether you will be one of them.

Arthur Gittleman of AR 2:05PM July 14, 2009