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PostPosted: Thu Jan 11, 2018 10:43 am 
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Danno wrote:
Hi Mark,

When you say 'went to cash' do you mean you did a cash disbursement from your 401k? Did you incur a 10% penalty? Or was this just a straight stock sale outside a 401k?

On another note, I have really been toying with the idea of using some of my 401k money to pay down or pay off our mortgage. Almost everything I've read indicates that it's not a good idea.
If the market were to tank tomorrow, I'd be in a bad place and still have a house payment. If I used some of my 401k funds to pay down/off my mortgage, at least I would have a large asset not tied to the stock market. I realize that one downfall would be the tax liability on the monies from the 401k, but I would escape the 10% penalty. Thoughts anyone?

NH Mark wrote:
ArubaAmy wrote:
It has been a very good year but I would expect a "market correction" soon.


We just today went to 13% cash.


I was referring not to our 401k but to our brokerage account - you can hold part of your account in available/liquid cash so that you can pull it out at any time if needed. As our savings grew we put more of that into investing because we didn't need it but now I'm thinking I'd like to turn some of the investments back into cash just so that when the correction comes that money will be safe from any ups/downs. 401ks do not have that option. I am not an advisor by any means but I wouldn't pull any money from a 401k (penalty is too high) - I would just move it to more stable / less risky funds so when the hit comes it won't be as bad. I did that right before 2009 - took a hit but not nearly as bad as everyone else did. Then when it evened out, move it back. It still recovered nicely.

That's my 2 cents for the day. And I could be wrong on all accounts so don't take my word for anything. LOL!

Hey Danno - hope all is well with you and Mrs. Danno! :D

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Playa del Carmen, MX: March 2017
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Munich, Salzburg, Prague: June/July 2017
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PostPosted: Thu Jan 11, 2018 11:20 am 
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Joined: Tue Nov 08, 2005 2:12 pm
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Location: East Central New Hampshire
Danno wrote:
Hi Mark,

When you say 'went to cash' do you mean you did a cash disbursement from your 401k? Did you incur a 10% penalty? Or was this just a straight stock sale outside a 401k?

The bulk of our retirement monies reside in highly managed ETF's which constantly churn. We manage other personal funds outside of our retirement account - of which we moved stock to cash yesterday - so no penalties other than cap gain tax. We're conservative, this particular bank stock (TD) was near an all-time high, so we cashed out most of that holding to situate us at +-1/8 (12.5) in cash when viewing our portfolio globally.

Paying off or partially paying off a mortgage, is tantamount to cash-in-hand but that depends upon from where the funds originate. It's all a matter of investor comfort, and mathematics. Good luck.

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PostPosted: Thu Jan 11, 2018 11:23 am 
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ArubaAmy wrote:
I was referring not to our 401k but to our brokerage account - you can hold part of your account in available/liquid cash so that you can pull it out at any time if needed. As our savings grew we put more of that into investing because we didn't need it but now I'm thinking I'd like to turn some of the investments back into cash just so that when the correction comes that money will be safe from any ups/downs. 401ks do not have that option. I am not an advisor by any means but I wouldn't pull any money from a 401k (penalty is too high) - I would just move it to more stable / less risky funds so when the hit comes it won't be as bad. :D

What Amy says!

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