401k Withdrawal for a house?
I guess I need to clarify what I meant about a 401k being a risk free investment. Yes there is risk in any investment, but my 401k has an employer matched contribution. What other investment gives me a 100% return on my investment as soon as I deposit it? I also have the ability to control whether my money is invested in high risk stocks, bonds, real estate, etc, etc. I can choose the amount of risk that I am willing to handle. If I lost my job tomorrow and couldn't pay my mortgage, I would loose my house and all the equity I have in it but I would still have my 401k.
And sure the economy took a downturn but it is already starting to show signs of recovery. I have confidence that when I retire in 25 years the economy will have improved and my 401K will still be there. I'm thinking long term investment not trying to turn a quick buck. Patience.
I'm sorry that I won't buy into the hype put out by precious metals snake oil salesmen betting on our country's failure (I'm waiting for the gold bubble to burst just like the tech bubble and the housing bubble did ... it's all speculation driven by fear and greed). I'm also sorry that I cannot be so cynical as some who choose to belive that we are in store for total financial collapse. I did not choose to immigrate to the US just to bet on its failure.
Snake oil salesmen? Cynicism? Really?
Those who invested in precious metals, rolling out some of their 401K and IRA holdings, have increased their retirement funds by nearly 400% over the last decade.......and those who have taken control over their own funds, backing them with stocks based on precious metals or natural gas (for 2 very quick examples) have seen gains beyond that mark.....and it's not a bubble. Precious metals fluctuate, but when "paper money" fails, precious metals HOLD their VALUE regardless of inflation.
Now, if you think thousands of years of proven history boils down to "snake oil", just WHO is being cynical?
Cynicism has NOTHING to do with the G-20 planning to soon replace the dollar as the standard......it's gonna happen. It has nothing to do with the fact that EVERY nation who has increased their debt spending beyond their GDP (the US owes appx 120 trillion, and our gross GDP is around 15 trillion) has financially COLLAPSED.
It's pretty basic mathematics, proven by history, and being warned about NOW by all nations in power.
THAT, my friend, is not cynicism.......and the ones telling us to take some cover are trying to help us, NOT sell us snake oil. The US will survive, but it was those who saw the warning signs and took simple steps to prepare for what was coming that actually rebuilt the nation in the 30's......the same will hold true in the future.