Wednesday :: Oct 29, 2008

I Want Out of my 401k


by paradox

Surfing the net these days will garner financial advice from almost any site, folks are rightly worried sick in these troubled times and want to know the best practices for their money. The articles always say to keep investing in your 401k, no matter what. Yuck.

I rolled over my 401k funds this year and now I’m extremely sorry I did; it’s not that the value has been chopped by 35%, I don’t trust Wall St. or American business in any sense, and I don’t want my cash supporting Wall St. companies and institutions.

I, like most Americans, are stuck with this lousy 401k system, more and more companies are abandoning even any contributing matching funds. In theory I could get out, I don’t mind paying the taxes, but the IRS penalty is a killer. Still, I’m thinking about it.

Park the money in 10 year CD’s and never touch it, I suppose. The 7% I’d get could be a paltry sum compared to what the market could deliver, but like I said I simply don’t believe in supporting Wall St. institutions. Perhaps if there were 401k investments that had nothing to do with the stock market I’d switch to one, but I know of none, if they even exist.

paradox :: 10:40 AM :: Comments (13) :: Digg It!