I rarely post as I have been hoarding all of my inspiration for ME during these tumultuous times. Yes, I lost the vast majority of my 401K and savings exponentially in the last few weeks. For the time being, I still have my home and I am grateful for that although I wonder how much further I can sustain these expenses.
Ironically, I have been living well beneath my means and I do this as a practice because I did not want to be caught off-guard like my friends in 2001 after the .COM crash. I never expected such a dramatic displacement economically. There is a saying that "History Repeats Itself" and it concerns me greatly as it seems that Americans are being guided towards a choice of socialism or poverty. Have you noticed that every major commercial campaign changed overnight to reflect our perception of the economy? We are not compelled to buy fast food for convenience anymore. Buying chicken in a bucket with biscuits and a side is less expensive than buying the ingredients in a store.
If I had one small tid-bit of advice, take whatever is necessary to cushion the blow. If the market turns around; you have at least 90 days to redeposit your funds without tax consequenses. The Big Guns that I know recommended that I pull my money out months ago but it seemed to go against everything I have been taught (even by them). Don't hold on to what really isn't yours unless you can afford it.
Did you pull your money out then? Why did you loose your 401K? Was it from your company collapsing or did you have to borrow from it?
Posted by: Kimmie | October 24, 2008 at 12:19 PM