Why Is Everyone Pulling Funds Out of Their 401k In The Great Biden Economy?

[toobfreak]

If the Biden economy is half as good as The Banker keeps telling us, then why are people emptying out their savings up by over a THIRD?

Seems to me, that so many increasing people tapping into their nest eggs which were SUPPOSED to be there for their retirements suggests that things are getting worse, MUCH worse, and our economy is anything but sound.

If I were an investor, with the spending of Biden and the democrats, the national debt, the Biden war chest digging deeper and deeper, the looming China Problem, the Immigration problem (Biden has now invited in as many illegal unskilled foreigners we need to take care of in 2 years equal to the population of seven states the size of Montana), the banking problem, the AI problem, the degraded dollar problem, and now the looming threat of a government takeover forcing us to switch to an all electronic currency, now is the last time I'd want to take any financial risk.

https://www.cnn.com/2023/08/08/economy/401k-hardship-withdrawals/index.html

 

[Care4all]

Certificate of Deposits (CDs)are paying good guaranteed interest rates!!! They've been crap for years....

We moved a good chunk of our retirement savings from the market to CDs just recently ourselves!

 

[excalibur]

Certificate of Deposits (CDs)are paying good guaranteed interest rates!!! They've been crap for years....

We moved a good chunk of our retirement savings from the market to CDs just recently ourselves!

And?

This from the link in the OP

More Americans are tapping their 401(k) accounts because of financial distress, according to Bank of America data released Tuesday.

The number of people who made a hardship withdrawal during the second quarter surged from the first three months of the year to 15,950, an increase of 36% from the second quarter of 2022, according to Bank of America’s analysis of clients’ employee benefits programs, which are comprised of more than 4 million plan participants.​

 

[JGalt]

If the Biden economy is half as good as The Banker keeps telling us, then why are people emptying out their savings up by over a THIRD?

Seems to me, that so many increasing people tapping into their nest eggs which were SUPPOSED to be there for their retirements suggests that things are getting worse, MUCH worse, and our economy is anything but sound.

If I were an investor, with the spending of Biden and the democrats, the national debt, the Biden war chest digging deeper and deeper, the looming China Problem, the Immigration problem (Biden has now invited in as many illegal unskilled foreigners we need to take care of in 2 years equal to the population of seven states the size of Montana), the banking problem, the AI problem, the degraded dollar problem, and now the looming threat of a government takeover forcing us to switch to an all electronic currency, now is the last time I'd want to take any financial risk.

https://www.cnn.com/2023/08/08/economy/401k-hardship-withdrawals/index.html

Not only that, but credit card debt has risen to a record $1 trillion dollars under Bidenomics, in spite of the 22-year high interests rates.

https://www.cnn.com/2023/08/08/economy/us-household-credit-card-debt/index.html

 

[Deplorable Yankee]

I was reading that this morning...they're maxed out and hurting

Maybe it's because bacon prices have tripled ....

 

[DudleySmith]

lol 401K's have always been a scam. this is the sort of scam Wall Street wants SS to be, with bankers, brokers, and ' financial managers' raking in huge fees off the top for losing it all.

 

[Blues Man]

Certificate of Deposits (CDs)are paying good guaranteed interest rates!!! They've been crap for years....

We moved a good chunk of our retirement savings from the market to CDs just recently ourselves!

That's not a hardship withdrawal.

You can move money in a qualified retirement account between investment vehicles with no penalty

 

[Votto]

If the Biden economy is half as good as The Banker keeps telling us, then why are people emptying out their savings up by over a THIRD?

Seems to me, that so many increasing people tapping into their nest eggs which were SUPPOSED to be there for their retirements suggests that things are getting worse, MUCH worse, and our economy is anything but sound.

If I were an investor, with the spending of Biden and the democrats, the national debt, the Biden war chest digging deeper and deeper, the looming China Problem, the Immigration problem (Biden has now invited in as many illegal unskilled foreigners we need to take care of in 2 years equal to the population of seven states the size of Montana), the banking problem, the AI problem, the degraded dollar problem, and now the looming threat of a government takeover forcing us to switch to an all electronic currency, now is the last time I'd want to take any financial risk.

https://www.cnn.com/2023/08/08/economy/401k-hardship-withdrawals/index.html

I think a lot of people are taking money out of savings just to survive.

The rest are getting ready for the great Reset trying to figure out how to protect their money from Biden and the democrats.

 

[1srelluc]

Certificate of Deposits (CDs)are paying good guaranteed interest rates!!! They've been crap for years....

We moved a good chunk of our retirement savings from the market to CDs just recently ourselves!

I did the same but it was just idle cash I had setting in the bank due to forced payouts from thrift savings.

 

[Moonglow]

I've been able to save more in the last year than I have in many years.

 

[Care4all]

I've been able to save more in the last year than I have in many years.

Us too! Mainly because Matt finally retired and he doesn't have to spend money on the 60 mile round trip to work daily, gasoline! (And saved the spending on eating out money) Food costs more now, but still not what he spent, (and I spent) eating out...

 

[leftwinger]

That's not a hardship withdrawal.

You can move money in a qualified retirement account between investment vehicles with no penalty

A CD is nothing but a fixed time savings account. It is not a qualified retirement account under tax free rules. She is babbling on about selling “a sizeable chunk” lol! of stock and then moving it to CD savings. Again, she is almost always wrong, uninformed or lying Lestist puke on every post.

 

[Blues Man]

A CD is nothing but a fixed time savings account. It is not a qualified retirement account under tax free rules. She is babbling on about selling “a sizeable chunk” lol! of stock and then moving it to CD savings. Again, she is almost always wrong, uninformed or lying Lestist puke on every post.

Do a little research

I know what a CD is and I know that CDs can be used as qualified retirement accounts

What an IRA CD Is, Rates and How It Works - SmartAsset | SmartAsset

An IRA CD combines two popular bank accounts: IRAs and CDs. This guide covers how they work, their pros and cons, common rates and more.

smartasset.com

 

[leftwinger]

Do a little research

I know what a CD is and I know that CDs can be used as qualified retirement accounts

What an IRA CD Is, Rates and How It Works - SmartAsset | SmartAsset

An IRA CD combines two popular bank accounts: IRAs and CDs. This guide covers how they work, their pros and cons, common rates and more.

smartasset.com

if it is already in a retirement account. To convert funds to money market or CD can trigger a FED Tax event to move it over to a fund you can access as savings. FYI, As i was told by financial advisor. And she was not clear if it was savings? Or quakified savings account like IRA or 401K.

 

[Blues Man]

if it is already in a retirement account. To convert funds to money market or CD can trigger a FED Tax event to move it over to a fund you can access as savings. FYI, As i was told by financial advisor.

No it does not.

You can take money out of a 401 and move to a personal IRA with no tax penalty

This can be done by either a direct rollover where the money is electronically transferred to the new IRA or a check can be issued and the person has 60 days to deposit that money into another qualified retirement account.

You need to learn the laws regarding qualified retirement accounts so you don't get taken advantage of.

The 60-Day Rollover Rule for Retirement Plans

The 60-day rollover rule allows for tax- and penalty-free rollovers from one retirement plan to another. Lean how 60-day rollover rules work and how to use them.

www.investopedia.com

 

[leftwinger]

No it does not.

You can take money out of a 401 and move to a personal IRA with no tax penalty

This can be done by either a direct rollover where the money is electronically transferred to the new IRA or a check can be issued and the person has 60 days to deposit that money into another qualified retirement account.

You need to learn the laws regarding qualified retirement accounts so you don't get taken advantage of.

The 60-Day Rollover Rule for Retirement Plans

The 60-day rollover rule allows for tax- and penalty-free rollovers from one retirement plan to another. Lean how 60-day rollover rules work and how to use them.

www.investopedia.com

i was refering to inside an already existing IRA, to move to money market or CD? Where I could then access to transfer to my spending account…..I was told now triggers a Taxable event. So I let it sit in equities rather than pay 10% Tax in advance of pulling it out. Maybe it was a mistake or a trick? To keep me in?

I understand and have done direct rollovers into IRA. You are correct.

 

[Blues Man]

i was refering to inside an already existing IRA, to move to money market or CD? Where I could then access to transfer to my spending account…..i was told now triggers a Taxable event. So I let it sit in equities rather than pay 10% right Tax in advance. Maybe it was a mistake or a trick? To keep me in?

ii understand direct rollovers into IRA. You are correct.

CDs can be used as an IRA vehicle. A cash account can be used an an IRA vehicle as well.

 

[Toddsterpatriot]

Certificate of Deposits (CDs)are paying good guaranteed interest rates!!! They've been crap for years....

We moved a good chunk of our retirement savings from the market to CDs just recently ourselves!

If you pull money out of a 401K to buy a bank CD, you may be a Biden voter.

 

[Care4all]

If you pull money out of a 401K to buy a bank CD, you may be a Biden voter.

Nah, I'm just getting older and always planned to shift things around! Just grateful the higher interest yields make that a little easier, for us older folks going in to retirement!

 

[Toddsterpatriot]

Nah, I'm just getting older and always planned to shift things around! Just grateful the higher interest yields make that a little easier, for us older folks going in to retirement!

If you shifted out of a 401K, paying taxes and penalties, to buy a CD outside of the 401K,
you may be AOC.