401K ala Covid
#1
401K ala Covid
Heard our FAs talking today about taking the covid disbursement plan. I’m gathering some talking points on pros/cons. im not thinking it’s a good idea to dive into a retirement plan to get out of debt, etc.
Thoughts?
Thoughts?
#2
Gets Weekends Off
Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,803
Thoughts? Yeah.....it’s a terrible idea unless you’re really in need of it.
#4
Gets Weekends Off
Joined APC: Jan 2017
Posts: 231
I think that would be a last resort thing to take a disbursement. The penalty is waived, but you still have to pay tax on it as earned income.
Even a loan program seems like a looser. Your money is doing better (now) in the 401K then loan rates at the bank.
Even a loan program seems like a looser. Your money is doing better (now) in the 401K then loan rates at the bank.
#6
Gets Weekends Off
Joined APC: Jul 2015
Position: MD-88 FO
Posts: 1,572
#7
New Hire
Joined APC: Sep 2018
Posts: 6
Without replacing the monies one could be potentially down 500k on average. This is over the life of ones career in the 401k just assuming a modest return (20 plus years remaining). But, depending on one’s own 401k that could be somewhat minimal based on individual saving practices and when someone started. The limit is 100k withdrawal.
This isn’t necessarily a bad deal depending on one’s own financial situation. At least it’s an option that can give piece of mind in this turbulent time. Another way of looking at it, is there no guarantee that will even make it to retirement and why not take advantage of something that we have worked our entire life’s for. I know it’s a taboo subject of never touching one’s retirement. Just a thought.
#8
weekends off? Nope...
Joined APC: Apr 2014
Posts: 2,021
#9
Gets Weekend Reserve
Joined APC: Jul 2007
Posts: 3,776
Right, and at this point, do you think the market is a smoking deal, at the right levels, or is it way too high? Personally, I think it's way too high and due for a contraction that's in line with the economic reality.
#10
Gets Weekends Off
Joined APC: Sep 2015
Posts: 280
I don’t usually react to noise and turbulence in the markets, but this morning I finally had my Sell Mortimer Sell moment. I’m out and sitting in cash at least through the election and possibly all the way to the inauguration at this point. Just too many outside forces acting on the market and I just can’t justify letting it ride this time. Even if we get a quick SnapBack, I’m alright with just sitting on the sidelines for a little while and see where this all goes.
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