Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (73490)	3/29/2001 11:51:07 AM
From: E. Graphs	Read Replies (2) \| Respond to of 99985

Just a thought: I've read that almost any inflow to 401K accounts is now going into bond funds and money market funds in a flight to safety. There is a hefty penalty to withdraw funds from 401K accounts, but people are concerned that their retirement funds are disappearing as the market falls and feel they can't do anything about it. Also, even though they are supposed to be the least risky, not all money markets are insured and can be at greater risk than most people imagine. I've found one way to put a little out of harms way, temporarily, is to take advantage of the loan feature that some 401K's offer. This plan enables someone to withdraw money from their 401K plan and then pay it back with interest to themselves. Thus you would gradually add back the money with interest to your account, and perhaps, by the time you repatriate your borrowed funds, the economy might be in better shape......a 4 or 5 year loan would put you fully back into the market in time for the next election. If you lose your job in the meantime and you can't pay yourself back the loan, then you just take the penalty you would have taken otherwise....had you withdrawn the funds to begin with.... but chances are if you do lose your job things will have become much worse for the economy and that money may have found its own way out of your account.