401k Recession

401k Recession

Have you checked how much is in your retirement fund?

All those years of putting your hard earned money into a 401k was suppose to help you save for future retirement. Thought like so many people that I was doing the right thing by putting my money in what I thought was a relatively safe investment.

I was told the 401k was for the long term and that because of dollar cost averaging, you would have more money since you are buying low when things are down. It was to save you on taxes since your contribution would be tax deferred.

It took so many years to build up and it only took a few months to tank. I have lost about 35% so far so now instead of triple digits, what I have left is double digits and it continues to fall. I don’t really know what or how my 401k money is being used. It is invested in a family or group of funds. What does that mean exactly?

The worst part, I am not able to do much about it. I can take money out of my 401K and suffer huge tax consequences and penalties. This may result in a loss equal to or greater than the loss already suffered. I can quit my job and then rollover the funds. I can let it sit and wait for it to go up again some day.

I am not so sure that I would be able to recoup the amount I have lost in such a short time. Maybe if I had 20 more years things might be different. So can we rely on Social Security, Medicare and the traditional retirement accounts? The government has a trillion dollar deficit. Taxes will be higher and it seems any reliance on government and company pension funds is a thing of the past.

I know what I can do and am doing. Everyone has the ability to do the same.
I stopped further contribution. Since I am not able to withdraw any funds, I transferred the remaining funds into a more stable fund so the loss is less.

I have rolled over my IRA into a self directed Roth IRA so I have more control over what is invested and how it is invested. There is no tax consequence or penalties if done through a qualified custodian / company. It is tax free not tax deferred so I will not have to pay taxes when I do reach the age of retirement and start collecting on it. For more information on investing using a Self Directed IRA go to our website www.NationwidePropertySellers.com and select the link “Free Reports”

My Self Directed Roth IRA will be used to invest in Real Estate. Real Estate is more tangible, it is something I have control over and it is an investment that appreciates over time. Most of the wealth in America has been made with Real Estate.

I plan to be wealthy and so I will be more in charge and control of my financial future.

Amy Yoshimitsu
Lois Threlkeld

Investing in Your Future

No Comments

Post A Comment