Author Topic: Money Retirement (Read 2728 times)

Lover of Truth · « **on:** March 30, 2022, 07:36:15 AM »

Dear Friends and everyone else,

I hope this post is not off topic. But I'm trying to figure out what is best to do for my family. I'm not sure if anyone knows about the Federal Government Saving's plan. The Thrift Saving Plan. You have to keep your money there until your retire if you don't want to be penalized.

I want to pay off my house and get a new one that my girls can live in after I'm gone with some money they can live off of so they will not be dependent on the Tyrants of this world for sustenance.

What I'm getting to is if anyone has ideas on when the dollar is going to collapse?

Is bitcoin good and safe to invest in?

Would it be better to pay off the house now and eat the penalty in order to avoid the money disappearing later?

I'm open to all ideas. I had everything thing planned in regards to when I retire, pay the house off and get a new one where we will spend the rest of our days. But now I'm afraid that following that plan could be the worst possible thing I can do for my family. Anyone's helpful response would result in four eternally grateful souls.

In Christ the King and
Mary Our Immaculate Queen,
Immaculate Heart of Mary, Triumph soon!

Lover of TRUTH

ultrarigorist · « **Reply #1 on:** March 30, 2022, 09:54:23 AM »

Pay off the house, it's a gift that keeps giving.
(compare the gov't penalty to debt service on your loan, and I think it will show in favor of ditching the mortgage anyway)
Hard assets are always better than fiat money, and note that the Ruble has just been pegged to a gold standard.
THAT is the economic equivalent of dropping a nuke on Wall St., and thus we know where the dollar is headed.

Lover of Truth · « **Reply #2 on:** March 30, 2022, 10:00:13 AM »

Quote from: ultrarigorist on March 30, 2022, 09:54:23 AM

Pay off the house, it's a gift that keeps giving.
(compare the gov't penalty to debt service on your loan, and I think it will show in favor of ditching the mortgage anyway)
Hard assets are always better than fiat money, and note that the Ruble has just been pegged to a gold standard.
THAT is the economic equivalent of dropping a nuke on Wall St., and thus we know where the dollar is headed.

Thank you so much. It was just what you mentioned, what Putin is doing, that got me thinking seriously about it. I am nervous.

ultrarigorist · « **Reply #3 on:** March 30, 2022, 10:54:02 AM »

Don't get me wrong; what "Putin is doing" is precisely the right thing to do, especially in the face of ongoing theft of Russian assets + other draconian measures against his countrymen. All currencies should be backed by a hard standard (see the Angelic Doctor on that..) because it's one, if not the, best measure to thwart plundering of economies by the usual suspects.
BUT, as the Dollar is now such worthless hyper-inflated paper since coming off the gold standard 1/2 century ago, it means we (and Euro-zone likewise) are gonna feel the pinch for awhile.

I notice a lot of realtime exchange rate venues are fiddling the $/Ruble numbers as of today, Yahoo probably being the most accurate at the low 82's right now.

epiphany · « **Reply #4 on:** March 30, 2022, 12:20:58 PM »

Never be in debt is #1.

I never had a penalty when paying off the house early. Are you sure you would?

"I want to pay off my house and get a new one that my girls can live in after I'm gone with some money they can live off of so they will not be dependent on the Tyrants of this world for sustenance." Have you thought about teaching your daughters a marketable skill so they can survive on their own?

Lover of Truth · « **Reply #5 on:** March 30, 2022, 01:33:06 PM »

Quote from: epiphany on March 30, 2022, 12:20:58 PM

Never be in debt is #1.

I never had a penalty when paying off the house early. Are you sure you would?

"I want to pay off my house and get a new one that my girls can live in after I'm gone with some money they can live off of so they will not be dependent on the Tyrants of this world for sustenance." Have you thought about teaching your daughters a marketable skill so they can survive on their own?

Thank you for the response. The penalty would be from the pension for taking out before I retired. We are working on ways my girls can make money from home. And not have to answer to the typical ridiculousness that will only get worse and put their souls in danger. They are so innocent and pure and I want to keep it that way. The "real world" is a pig pen. Ready made to send all who enter to Hell. Immaculate Heart of Mary, Triumph soon!

Ladislaus · « **Reply #6 on:** March 30, 2022, 01:35:47 PM »

Quote from: Lover of Truth on March 30, 2022, 10:00:13 AM

Thank you so much. It was just what you mentioned, what Putin is doing, that got me thinking seriously about it. I am nervous.

I feel that the collapse of the dollar is imminent. Putin pegged the ruble to gold and is demanding ruble payments for energy, which Europe is refusing to do. At the very least this creates competition for the US petro-dollar as those buying from Russia and perhaps other countries will have to get rid of their dollar reserves. And because Putin pegged the ruble to gold, it's real currency instead of the US fiat money that has no backing. While Europe is currently refusing, they're going to have no choice. There was a report by German trade unions detailng that their entire economy will grind to a halt within weeks if they lose Russian energy. There's a report today that the Vatican caved (despite all of Bergoglio's bluster about the evils of the Russian incursion) and exchanged 10 million Euros for ruble to buy energy. As more and more other countries realize they have no choice, that will undermine the US dollar as the petro- and overall reserve currency.

I feel that a collapse of the US dollars could happen withing weeks, but certainly within months. At that point holding tangible assets is far preferrable to holding currency. If the hyperinflation happens relatively quickly, it could result in effetively paying off people's homes. But what I think they'll do is to re-value them. At some point they're going to seize all private property anyway. "You'll own nothing and be happy." That's why Black Rock was going around buying up homes at inflated prices.

To be very honest, I don't think it'll matter which way you go. Things will be such a mess that they'll privatize all private property. There's really no such thing anyway. If you don't pay your property taxes, you lose your home, and they'll keep jacking those up til they're unaffordable. Even for my parents, by the time they paid off their mortage after 30 years, their property tax payments were higher than their Principle + Interest payments.

Pax Vobis · « **Reply #7 on:** March 30, 2022, 03:57:16 PM »

If you have a 401k, cash it out NOW and pay off debt, buy long-term food, ammo, and silver.

If you cash out a 401k, you’ll pay a 10% penalty, plus the normal tax rate on earnings (stock gains + employer contribution).

So, 10% + 30% (estimate) = 40% taxes. Factor in state taxes, and it’s basically 50%.

Ok, you might say, “Wow, 50% is a lot. “. But the stock market is manipulated and could drop 50% any day now. I’d rather have the cash now vs wait and see if things “get better”. All signs point towards the world getting crazier and crazier. I say, cash out now.

PM me if you want. I’ll help if I can. I’ve done this before.

DigitalLogos · « **Reply #8 on:** March 30, 2022, 04:02:56 PM »

Shame. I can't cash out my retirement until I actually retire or I quit/get fired.

Also, my 130 year old house that we got for $145k is apparently worth $220k right now

Ladislaus · « **Reply #9 on:** March 30, 2022, 04:14:06 PM »

Quote from: Pax Vobis on March 30, 2022, 03:57:16 PM

If you have a 401k, cash it out NOW and pay off debt, buy long-term food, ammo, and silver.

If you cash out a 401k, you’ll pay a 10% penalty, plus the normal tax rate on earnings (stock gains + employer contribution).

So, 10% + 30% (estimate) = 40% taxes. Factor in state taxes, and it’s basically 50%.

Ok, you might say, “Wow, 50% is a lot. “. But the stock market is manipulated and could drop 50% any day now. I’d rather have the cash now vs wait and see if things “get better”. All signs point towards the world getting crazier and crazier. I say, cash out now.

PM me if you want. I’ll help if I can. I’ve done this before.

Depending on the plan, they may not let you cash it out unless you can demonstrate and docuмent an allowable "hardship" (there's a small list of what qualifies). So they hold your money hostage to use it to prop up the stock market. 401K plans are the number one reason the stock market is propped, and it inflates the wealth of the Jєωιѕн bankers while sucking money out of the regular person's pocket.

Ladislaus · « **Reply #10 on:** March 30, 2022, 04:16:03 PM »

Quote from: DigitalLogos on March 30, 2022, 04:02:56 PM

Shame. I can't cash out my retirement until I actually retire or I quit/get fired.

Also, my 130 year old house that we got for $145k is apparently worth $220k right now

Yet it doesn't really help us any because if you were to sell, to get another house you'd be overpaying by the same amount anyway, and, after all, you do need a house to live in if you have a family.

DigitalLogos · « **Reply #11 on:** March 30, 2022, 04:20:27 PM »

Quote from: Ladislaus on March 30, 2022, 04:16:03 PM

Yet it doesn't really help us any because if you were to sell, to get another house you'd be overpaying by the same amount anyway, and, after all, you do need a house to live in if you have a family.

And the value is only going to go up soon since we had a tree fall on our house and the roof will need to be replaced

But, yes, selling is no option. I was trying to look into an equity loan to consolidate all of this debt we've had since the pandemic kicked off, with no luck. I've had to remind my wife over and over again how bad of an idea it is right now when she whines about our house being too small. We would be ripped off completely. Our friends just bought their first home for almost $400k, but when I looked it up, the home was built for less than $200k. It's a nice, roomy home, but they got ripped off and have to deal with an HOA.

Ladislaus · « **Reply #12 on:** March 30, 2022, 05:34:43 PM »

Before we moved into our current home 3 years ago, we (total of 8, with 6 children) lived in a 1300 square foot house with 3-4ish bedrooms and 2 bathrooms. 1 bedroom and 1 bath was in the basement, so the kids didn't like using it, so it may as well have been a 3-bed 1-bath house (not easy for 8 people). And the bathrooms were tiny, the size of a largish closet ... which of course women and girls can't abide. We did however have about 700 square feet of finished space in part of the basement that served well as a family room. I got that for $125K. I actually loved that place. Had 2 acres, and it was a beautiful large wooded lot. Was on a big road, however, and no sidewalks. So it wasn't my wife's cup of tea. I on the other hand really enjoy nature. I think the kids really miss the place. Plus it had a wood-burning fireplace, a well, sceptic, no need for a sump pump in the basement, etc. I regret leaving that place behind.

It was built in the 1940s. One thing I notice. They used REAL lumber to build it. I've never had as much difficulty driving nails into the studs and joists that I did in that house. That was some incredibly solid and hard wood.

Thankfully, though, when we bought this house a couple years ago, we got a really good interest rate and were able to later refi at 2%. We'll never see those interest rates or those housing prices again.

DigitalLogos · « **Reply #13 on:** March 30, 2022, 05:46:20 PM »

Quote from: Ladislaus on March 30, 2022, 05:34:43 PM

Before we moved into our current home 3 years ago, we (total of 8, with 6 children) lived in a 1300 square foot house with 3-4ish bedrooms and 2 bathrooms. 1 bedroom and 1 bath was in the basement, so the kids didn't like using it, so it may as well have been a 3-bed 1-bath house (not easy for 8 people). And the bathrooms were tiny, the size of a largish closet ... which of course women and girls can't abide. We did however have about 700 square feet of finished space in part of the basement that served well as a family room. I got that for $125K. I actually loved that place. Had 2 acres, and it was a beautiful large wooded lot. Was on a big road, however, and no sidewalks. So it wasn't my wife's cup of tea. I on the other hand really enjoy nature. I think the kids really miss the place. Plus it had a wood-burning fireplace, a well, sceptic, no need for a sump pump in the basement, etc. I regret leaving that place behind.

Apart from the size (which, mind you is 200 square feet larger than our house) it sounds exactly what my wife and I would love to have. Our basement isn't what you would call "unfinished" in a modern sense, but is more like an old cave with some modern appliances. And at 6'1" I have to bend over to go down there

Quote from: Ladislaus on March 30, 2022, 05:34:43 PM

It was built in the 1940s. One thing I notice. They used REAL lumber to build it. I've never had as much difficulty driving nails into the studs and joists that I did in that house. That was some incredibly solid and hard wood.

That is the one beautiful thing about my house. It was built in the 1890s and is utterly solid in construction. I really have to hammer to get stuff in the studs although most of the walls are plaster anyway. But I don't have to worry about it caving in anytime soon, as two huge branches of our maple(?) tree fell on the roof last month during a storm. The insurance adjustor was amazed that there wasn't any interior damage, as was I.

Praise God it isn't a modern house, I'm sure our kids would've been injured (or dead) as the two 1000-lb tree branches would've torn through the roof like paper.

Pax Vobis · « **Reply #14 on:** March 30, 2022, 05:59:08 PM »

Quote

Depending on the plan, they may not let you cash it out unless you can demonstrate and docuмent an allowable "hardship" (there's a small list of what qualifies). So they hold your money hostage to use it to prop up the stock market.

Very true. When I cashed my old one out, it was from a previous job, and I didn't roll the $ into my current job's plan. It was very small, less than 3k but I learned about how such things are taxed.

Quote

Shame. I can't cash out my retirement until I actually retire or I quit/get fired.

It's possible you can take out a 401k loan, which is not based on hardship, nor is it regulated by the IRS at all. Many plans allow up to 50% (or a dollar limit) on personal loans. Typically you have a 4/5 year payback period, at low interest (4-5%) and it's taken out of your paycheck. Positives? 1) You get immediate cash. 2) You're paying interest to yourself. 3) If you leave the company, then you can cash out your 401k anyways, so the load amount which is still outstanding is considered a distribution (i.e. just like you cashed out your whole plan).

The only downside to a 401k loan is if you think you can make more gains in the stock market than 4-5%.

Author Topic: Money Retirement (Read 2728 times)

Lover of Truth

Money Retirement

ultrarigorist

Re: Money Retirement

Lover of Truth

Re: Money Retirement

ultrarigorist

Re: Money Retirement

epiphany

Re: Money Retirement

Lover of Truth

Re: Money Retirement

Ladislaus

Re: Money Retirement

Pax Vobis

Re: Money Retirement

DigitalLogos

Re: Money Retirement

Ladislaus

Re: Money Retirement

Ladislaus

Re: Money Retirement

DigitalLogos

Re: Money Retirement

Ladislaus

Re: Money Retirement

DigitalLogos

Re: Money Retirement

Pax Vobis

Re: Money Retirement