Posted: 7/13/2008 9:10:36 PM EDT
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so, with the panic set in right now. Would it a. be smart to get out of your 401k and put it in a long term cd right now? b. would you be taxed for cashing it out? |
10% penalty, plus it will be taxed like income. Expect to keep 65% of whatever your balance is -- if you're lucky. Are you planning on dying soon? If not, why not ride it out? In the long term, the trend continues to go up. |
Goal = buy low, sell high Here is your chance to accomplish half that equation. Relatively speaking of course. Up your percentage until it hurts. |
You have no idea what you're doing or suggesting. You'll end up losing a shit ton of more money with your plan.  You need to take a personal finance class somewhere to learn about investing dude.
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Some reading might help...William Bernstein, a physician turned financial advisor has written several great books: "The four pillars of investing" is probably your best bet. If you're more of an analytical type then, try "The Intelligent Asset Allocator", by the same author. I would submit that if you are considering selling then, you have not set an asset allocation that you can live with through thick and thin. In other words, if you're losing sleep at night over the performance of your 401K then, titrate your bond exposure upward until you feel comfortable. It also is recommended that you view all of your investments as one pool of assets for the purpose of setting your allocation. I'm assuming that you and your spouse, if married, have an IRA account. Good luck. |