Just in! My 401(a) lost 2.34% in the last quarter.

[Ernesto]

Sure kids, put YOUR Social Security money in the the stock market!
On May 5th, I turn 59 & a half years old & all my money comes out of the market..... WOOOHOOOOO!

[Eloriel]

1. I'd say you were damn lucky -- and I'll cross my fingers

what you've got doesn't dwindle away any further in the meantime.

[ClintonTyree]

2. Consult a tax specialist before you do...

or else the IRS is going to take 40% if it. Roll it over, do ANYTHING to keep it out of the government's greedy paws. 40%, do believe that crap? You'd be paying more taxes than the bush baby. Good luck, and I hope the market soars between now and May 5.

[enid602]

8. taxes

Well, if he waits until he's 59 1/2, he won't have to pay the 10% penalty, but will still have to pay regular income taxes of up to 35%. If the withdraws half of his funds on 12/31 of this year and the other half the following day, it might put him in a different tax bracket, and lower his taxes. If he has a REALLY LARGE balance to withdraw, he might even be able to take advantage of *'s new lower taxes for the wealthiest 1%. Ironic, isn't it? I've thought about it too.

[ret5hd]

3. and people say i am stupid for...

putting all of my 401k in the money market fund last year...because it PAYS 3.2 (or so) percent guaranteed.

[madrchsod]

4. my wife just got her`s out in time

she had to cash out cause she lost her job and we needed the cash...just think how much we would have if we didn`t have to pay taxes on our money and not to mention the penality fee. can`t have the middle class getting to much money now can they. hell i`m 58 with no retirement at all-all thanks to the industry i worked in moving money and jobs overseas.

[B Calm]

5. The good times have come to an end, and no one dares

tell you this, because it might cause a panic. Once they wake up to this fact the market is going to going to get dumped big time.

[indepat]

6. Wish I had only lost 2.34% in the last quarter.

[B Calm]

7. Industry would prefer not to make any further investments

into the US, thus capital flight is inevitable (in spite of tax policies), ... I have a problem with industry using our 401K's and their treatment of the US wage worker as a Cash Cow to be milked and harvested to funnel investment funds internationally.

I believe the US is in paradigm shift, the US is an over developed country, and the easy money's been made. The tax code policy over the last 20 years has successfully provided incentives for US industry to make many Americans and America the richest country in the world. However, at this juncture, we have an aging population with a high cost/high benefit workforce, a mature consumer base, the easy natural resources have been mined or exploited, and the soils in our bread basket called the Midwest are nutrient depleted and require significant intensive farming methods e.g.; pesticides and petrol chemical fertilizers to maintain yields, which also cause the highest levels of cancer on the planet. As far as Global industries are concerned, there are cheaper and more plentiful natural resources elsewhere to exploit, cheaper labor and younger developing consumer markets outside the US that present more attractive investment opportunities.

[Dr Ron]

9. A bad quarter means nothing

The point in retirement investments is how they do long term, over several years, not over any given quarter (or even any few years).

There are a lot of arguments against Bush's Social Security proposals, but this is a weak one. It is also possible to appreciate the value of investing in the stock market and still oppose his plan.

Assuming you are a typical 59 year old who likely has many years to go, I'm not sure that taking all money out of the market is a good idea.

[Ernesto]

11. Wish I was typical, cause many working people would be alot better off

if I was.
For 2 years I've been retired from a UNION that never allowed any employer to "take care" of my retirement $$$$$$. The UNION took care of my money. Consequently, I'm making more now than @ any time in my life.
As for the "a bad quarter" argument: my fund has been doing poorly for atleast 2 years. Compared to my UNION defined contribution pension, the 401 is a (bad)joke.

[Egalitariat]

13. Or if you're only 6 months away from pulling it out, your nest egg

should not even be exposed to that kind of risk. The original poster should be about 99% invested in short term debt or cash equivalents.

The older you get, the less exposure you should have to volatile equities. If you can find a financial adviser that tells you otherwise, I'll eat my hat.

[Dr Ron]

16. 59 doesn't mean getting out of the market

Someone at 59 should have much of their investment money out of the market, but not 99%. A typical 59 year old has many years ahead of them and ahould still have some money in stocks, otherwise they'd have difficulty keeping up with inflation.

[Egalitariat]

17. The original poster stated he planned to get out in May '05****

nm

[Dr Ron]

18. Same argument still applies when he turns 60

I'd still advise against getting completely out of the market, and also advise against making any major changes ina portfolio all at once.

Besides, anyone who is opposed to having their money in the market, as well as anyone approaching this age, should have been gradually moving money out of the market for a while.

[tinfoilinfor2005]

10. Yup, I have almost the same identical situation going here,

and we are the same age. Fortunately my governor (jeb) has assured me that if I keep buying Florida Lotto tickets, my future is secure.

[KnowerOfLogic]

12. I think people are getting a clue that the stock market is not magic;

it has been basically flat for all of dumya's 'presidency,' and if it stays flat for a few more years, well, 8 years of no growth in people's retirement accounts does have a little impact. I think folks may be finally realizing that the current economic downturn was not clinton's fault, and at the least, dumya has done nothing to reverse it. People can only stay dirt poor for so long before the hold the adminstration in power responsible.

[NeoConsSuck]

14. Doesn't your plan provide for some sort

of a guaranteed income choice? My old plan at Mass Mutual did, and the interest rate was higher than you were going to get at any bank.

I now have a Charles Schwab 401k, and while they don't have a high interest choice, they do have a very safe income mutual fund.

[B Calm]

15. Cheap Labor Cons are salivating over the prospect of millions

of old desperate baby boomers with no retirement, and no social security to hire for cheap labor.

[ReverendDeuce]

19. My IRA lost $4,219 in the last quarter...

And before people claim that I am wealthy, let me just say that this was about 25% of my IRA's value. I should have got out while I was ahead.

[Ernesto]

20. OUCH!

sorry to hear that, RD.

[Dorian Gray]

21. What is a 401(a)?

I have a 403(b). I also lost 3% in the last year. But, in the past 13 years, I have a 140% gain. And it's relatively conservatively invested. (It should double every 7 or 8 years.)