Wish I could cash out my 401k
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Chief
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Hello 🐟🎏
When will be the retention bonus will be paid if a candidate joined TCS in the middle of the financial year. I.e September'22... Will that be paid on next year's September'23 Month only after completing an year in TCS?
And will the Retention bonus will also be considered as taxable income of the the current year taxes(2022-23)?
Looking for valuable suggestions!!!
Tata Consultancy
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Chief
Brisbane hotels - Hilton or Sofitel?
Rising Star
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Keep in mind the taxes and penalty you will pay.
No idea how old you are or how much you have in your 401k or how much "paper loss" you have right now.
I am under (paper loss) 300k but not worried at at all because I am not planning on using the money for a very long time.
Don't make rash decisions. You never sell when market is down.
Pro
Listen to the old head here. Don’t cash out.
If you are under 50, consider this a blessing
True that it took that long to recover from its peak, but people who dollar cost averaged into the market in the years of recovery were substantially richer than those who sat out.
If there was a time to not be buying, it was a year ago when everyone was euphoric and valuations were sky high. Now is the time to be buying in.
KAGA 2024
Chief
*ON AN INFLATION ADJUSTED BASIS*
Ok how are you beating inflation then
Beanie babies?
Rising Star
This conversation is about 401k, aka beating inflation long term. Anyone who invests for 30 years beats inflation.
Very likely that your 401k has a money market option that will have extremely flat value, if you are intent on locking in your Buy High Sell Low losses then transfer your investments to the money market option
Agreed time to sell was Nov 2021
Based on this logic and sequence, so <5 years to recover? Looking back this far is so dumb. The data series is not comparable across the time frame.
Rising Star
Usually these graphs don’t include any dividend and continuous reinvestment of those dividends. Secondly most of us will continue to invest on the decline and incline over those 30 years. Finally. Most of us on this bowl likely have 20-30 years to retire anyways. So your doomsday scenario isn’t so doomsday
Pro
I haven’t opted into my new employer’s plan just yet because I’ve been nervous about the market. I get the whole “leaving money on the table” “it’ll come back up” yadda yadda. I see my personal IRA plummeting, not going to cash it out, but leery about throwing more into a pit hoping it comes back up soon.
Lol sorry but you’re wrong here… Now is the time to buy! If you’re planning for retirement in 20+ years, next 3-5 years could be a massive buying opportunity for you to reap earnings on your contributions
Hey look bud. Market could go down another 10% from here. Perhaps even 20% if financial blow up. Just keep adding to your 401K unless you need liquidity over next 12 months…I would say end of 2023. Todays environment is so much different than prior. There is tons of money just waiting for price targets to hit. Options and lower liquidity could also make the recovery much faster to point you won’t be able to time it. Panic selling is not it.
Actual on the ground inflation is not increasing.
This is why only amateurs try to time the market.
https://www.cnbc.com/2021/03/24/this-chart-shows-why-investors-should-never-try-to-time-the-stock-market.html
That would be the exact opposite thing you should do right now. Double down and buy the dip. Isn’t that what you’ve been doing with crypto, GameStop, and BBBY?
If that was my portfolio there’d be nothing to cash out
The only good thing about this is that the cycles to make up losses are reducing in time partly because of how hyperconnected we are.
Pro
This is why it’s so important to continue saving money
Anyone trying to time the market tell me you predicted today's moves.
K1, you may be right, but I think you are too US consumer focused. European consumers are crushed by energy and aren't traveling or buying. Middle and Working Class is hurt in US, spending, but if more on food, rent and gas, then less on sneakers, clothes and electronics.
If you are serious about ‘sitting out’ just go heavy on bonds for a few months and switch back to stocks when you think the worse has passed.
Bonds as rates are rising? Wow. You know bonds drop as rates ruse, right?
Do you mean stop contributing?
What do you mean by cancel?
I would not make decisions based on one post that you added here
Lol
Pro
It’ll come back up. Trust.
Pro
You right.
This is a fairly binary response. I would just say to make sure your 401k isn’t your only investment. Need to diversify beyond 401k and equities in general.
Try buying art.
So based on this analysis, the next recovery should take 10 years (30, then 25 then 15). Not bad along with collecting dividends. Remember the big increases happen in only a few days, you can't predict which ones. Buy on the cheap, don't sell.