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View Diary: David Stockman: “get out of the markets and hide out in cash” Corruption Of Capitalism (122 comments)

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  •  I dunno. (4+ / 0-)
    Recommended by:
    gzodik, corvo, sweeper, Odysseus

    We're always hair-on-fire advised NEVER to tap retirement funds early because of "massive" penalties. I think it's BS--10% penalty is not massive. A lot of "personal finance" advice comes from the financial industry and is mostly targeted at keeping that industry healthy, imho.

    There are moments when the body is as numinous as words, days that are the good flesh continuing. -- Robert Hass

    by srkp23 on Mon Apr 01, 2013 at 06:17:16 AM PDT

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    •  Oh, and we're rarely told about 72 (t) (1+ / 0-)
      Recommended by:
      corvo

      exception, whereby, with certain other conditions, you can tap your retirement funds via substantially equal periodic payments and avoid the 10% early distribution penalty altogether.

      There are moments when the body is as numinous as words, days that are the good flesh continuing. -- Robert Hass

      by srkp23 on Mon Apr 01, 2013 at 06:39:56 AM PDT

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    •  When I left my previous job (1+ / 0-)
      Recommended by:
      srkp23

      I cashed out on my retirement account, taking the penalty, and paid off my student loan.  I then promptly replenished my new accounts with the extra money from the new job.

      Sometimes cashing in is actually the right and profitable thing to do -- but there's quite a bit of calculation involved.

      Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

      by corvo on Mon Apr 01, 2013 at 07:00:20 AM PDT

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    •  You pay the taxes AND the 10% (4+ / 0-)
      Recommended by:
      srkp23, corvo, ChemBob, semiot

      penalty, which puts it at about 40% of the total that goes to Uncle Sam, plus whatever fees the company charges.  

      Those fees had to be structured that way to make people leave it there, otherwise it would be a "savings account" and the reason for it's being - destruction of the need for Social Security so IT could be privatized - would never pan out and no one would buy into the concept.

      Since the crash in 2008, it is crystal clear that those schemes really arent' panning out for the vast numbers of Americans.  That people continue to use them is just astonishing to me.

      David Koch is Longshanks, and Occupy is the real Braveheart.

      by PsychoSavannah on Mon Apr 01, 2013 at 07:24:48 AM PDT

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      •  Of course you pay taxes--that's expected (1+ / 0-)
        Recommended by:
        corvo

        I'm just pointing out that the 10% fee is not a massive penalty. Esp if you're using to pay off debt, or fund a dream.

        I think they're good vehicles only if you get an employer match---that's free money, and in my case, covers the 10% penalty.

        There are moments when the body is as numinous as words, days that are the good flesh continuing. -- Robert Hass

        by srkp23 on Mon Apr 01, 2013 at 08:16:30 AM PDT

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