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I live in the UK. Used to work in USA. I just extracted my entire 401k out of the country and cashed it in with zero fees. Some COVID scheme to help people weather the storm. Excellent for me tho 😉
I was living overseas for a long time and had no plans to repatriate. So I pulled my funds and put into a condo in that distant land. I paid a heavy tax/ penalty but glad I bought over there. I no longer believe in 401k. Too restrictive. No freedom. Way too many rules about how you withdraw in retirement. Invest your money in something else. Land. Property. Stocks. Whatever. To me it’s more important as someone who wants to live in other countries to have the freedom. I feel 401k is an investment that dictates a life path of ‘save up til you retire, live the typical prescribed American retirement, and can’t do anything adventurous along life’s journey.’
CD3 fair point if it’s a true match. Dollar for dollar? How many agencies are doing that these days?
Yes because it is not taxed and usually your employer will match up to 6%. By the way checked the vesting period because you might lose the matching if you leave before the end of the vesting.
This is retirement saving. You're buying something that you hope will be valuable when you are 65. I wouldn't worry about timing the market around the election.
You should Really speak to an advisor there are IRAs and Roth IRAs that may be more suitable and different vendors have different products and instruments you can take advantage of. The match to 6% is nice if you plan on staying with the company for a while which I find to be increasingly rare and as a result, isn’t the benefit it sells itself as being.
Make most of your 401k Roth.
Yes. Move it from a 401k to a self directed IRA. Buy Apple and hold until 65. Enjoy several extra vacations per year in retirement.
I’m not sure on all the specifics of if you retire in another country, but there are massive tax penalties for cashing in early
It’s worth it if you stay for a long time at the same agency and they match what you invest
Check your company policy. Usually you have to be there a few years to be 100% vested to get their matching portion. If you leave early you might lose out on all or some of the portion of their match. Some companies stopped matching during Covid so you’re only investing your own money. You’re investing pretax money so it’s still a great way to invest for retirement.
It's worth it because the savings are tax free. Even if you leave the country before retirement you will have some dollar-denominated retirement savings.
USD troubles as in inflation (stimulus packages and reckless money printing) and the markets are ready for a major correction due to the fact that the FED artificially keeps the markets 'alive' until the election.
I put it off for ages but just started. I am ok keeping the money here until I can take it out without tax.
Im just going to start too. Although the agancy is not matching as it used before, is better to start now i guess
if you do decide to keep your money in a 401k you should know which funds you’re invested in because some own companies with really bad practices (high fossil fuel emitters, weapons manufacturers, etc.). you can check where your money is actually going by searching any fund here: www.arnie-checkyourfund.com. it’s free for anyone to use, hopefully it helps!
Following this as Id like to know too.
It doesn't matter if you're an expat or not. BUT: personally I'd be extremely cautious in putting any money in stocks (ETFs in an 401 k) or any FIAT based asset and would rather go with saver assets for the next months /years as a store of value since the USD is facing some serious troubles. Speaking of gold and bitcoin, there are also bitcoin IRAs available so any gains would be tax free too.
It's not timing the market, more of a macro pov for the next decades.
You do that need to sell when you leave the country. Visa status should not be part of your thinking.
Definitely talk to an advisor to make sure there’s no weird tax laws that’ll make you pay twice/in both countries.
This may be too grand an alternative, but you might consider investing in property instead.