Show-me Account Talk

[Show-me]

The no penalty withdraw of 401k has been a major subject of conversation at work. If they allow it many are planning to pull it out at my work.

Like Philly said what a way to stimulate the economy, let people use the money to pay down dept or just **** it away on more crap they do not need. I know what I will do.

 

[KevinD]

Compound interest...

 

[Show-me]

Einstein, gotta love it.

 

[Warrenlm]

The no penalty withdraw of 401k has been a major subject of conversation at work. If they allow it many are planning to pull it out at my work.

Like Philly said what a way to stimulate the economy, let people use the money to pay down dept or just **** it away on more crap they do not need. I know what I will do.

Generally, what do you hear as reasons for wanting to pull it out? To meet living expenses or to invest or to pay off a mortgage or ?

 

[Show-me]

Good morning Warrenlm,
I have not heard many specific, but it is being called their economic plans. What they won't say is the majority of people pulling the money will most likely buy something they don't need, thus stimulating the economy. lol

 

[nasa1974]

If there is a no penalty withdrawal of 401K's how many people will pull out of their TSP and reinvest it somewhere else???? The FRTIB has to be sweating this one.

 

[Show-me]

Yes, because I am hearing a larger number of people complain about TSP and the FRTIB. Many will not speak up, but when a opportunity arises like this they will speak up with their withdrawals.

TSP has gotten so big they are blind to what the informed, intelligent, and proactive participant want and we are the ones that will make the move. I got folks at my work that can not wait to get their money OUT of TSP. The FRTIB does not see that coming because they are stuck on themselves and being feed a line of crap from Long and Ray.

That bill gets passed I will knock out more from my TSP account. There are tax free options out there.

 

[nasa1974]

Since I am a novice about investing, can someone as a "public service announcement" offer some different areas that we could invest our TSP funds?

 

[Warrenlm]

I'm interested in this idea that civil servants will en masse pull out their funds from the TSP if given the opportunity. We saw the passive nature of our colleagues in the rule making process about IFTs. While a few knowlegdable individuals may have large accounts, it seems that most are not interested anything other than day to day life and the expectation that the TSP account will rise. They move quickly to G when it doesn't. But for a significantly large number of them to be so active as to withdraw and reinvest does seem stretching. If they were pulling funds out to meet living expenses that would be an unusual sign of budgets stretched too thin for federal employees.

 

[Silverbird]

Well, I think that putting in the minimum for full matching, and parking in G is a statement on how I feel about TSP. I expect TSP to turn around and say "I told you so!" when investors complain after pulling out last week for G - after the cows had left the barn. Notice that the dire warnings about parking in G come in *after* the huge losses in the first 3 quarters of this year? Funny that.

 

[XL-entLady]

Yes, because I am hearing a larger number of people complain about TSP and the FRTIB. Many will not speak up, but when a opportunity arises like this they will speak up with their withdrawals.

TSP has gotten so big they are blind to what the informed, intelligent, and proactive participant want and we are the ones that will make the move. I got folks at my work that can not wait to get their money OUT of TSP. The FRTIB does not see that coming because they are stuck on themselves and being feed a line of crap from Long and Ray.

That bill gets passed I will knock out more from my TSP account. There are tax free options out there.

Yes, my husband and I have already decided that if the tax option presents itself, we will remove a portion of each of our TSPs and place them in an account that can be moved more than twice a month, that can be moved any time during the trading day, and where a move request is confirmed in minutes rather than hours or days.

I don't know everything I should know about those options yet, but I'll learn. And my frustration quotient will ease considerably!

Lady

 

[Steadygain]

I'm interested in this idea that civil servants will en masse pull out their funds from the TSP if given the opportunity. We saw the passive nature of our colleagues in the rule making process about IFTs. While a few knowlegdable individuals may have large accounts, it seems that most are not interested anything other than day to day life and the expectation that the TSP account will rise. They move quickly to G when it doesn't. But for a significantly large number of them to be so active as to withdraw and reinvest does seem stretching. If they were pulling funds out to meet living expenses that would be an unusual sign of budgets stretched too thin for federal employees.

Sorry Lady, never mind.

 

[XL-entLady]

Yes, my husband and I have already decided that if the tax option presents itself, we will remove a portion of each of our TSPs and place them in an account that can be moved more than twice a month, that can be moved any time during the trading day, and where a move request is confirmed in minutes rather than hours or days.

I don't know everything I should know about those options yet, but I'll learn. And my frustration quotient will ease considerably!

Lady

I should add that I'm finding the folks on this MB to have enormous and varied information about all aspects of financial investment. So I know I will rely on you all to be a critical aid to my learning process for years to come. And I thank you all in advance for that!

Sorry Lady, never mind.

Okay ... I can do that.... :laugh:

Lady

 

[Steadygain]

Okay ... I can do that.... :laugh:

Lady

I had made a comment I feared would sound insulting and after reading your post erased it.

It's hard for me to believe that the 99% (and a huge percentage of the 3,000) would withdraw their TSP Retirement Account. For one I believe most of them are currently employed and it's a long term investment.

In general I believe the bulk of those constantly researching every move or decision Barclays and the FRTIB consider is a very small number and I can't possibly forsee the TSP accounts being withdrawn by a significant population. Especially as a way of slapping them in the face. But maybe I'm way out of touch.

 

[CountryBoy]

I had made a comment I feared would sound insulting and after reading your post erased it.

It's hard for me to believe that the 99% (and a huge percentage of the 3,000) would withdraw their TSP Retirement Account. For one I believe most of them are currently employed and it's a long term investment.

In general I believe the bulk of those constantly researching every move or decision Barclays and the FRTIB consider is a very small number and I can't possibly forsee the TSP accounts being withdrawn by a significant population. Especially as a way of slapping them in the face. But maybe I'm way out of touch.

Steady,

I could have read obama's proposal wrong, but the gist I got from it was that he would allow for 2 $10,000 withdrawals w/o any taxes or penalties. Oe in 2009 and on retroactive for 2008. But after reading some of the posts here, I'm beginning to think that I read the messiah's proposal wrong. I'll continue to contribute matching funds, 5%, but I'll be all over the tax free withdrawal, like a bird on a june bug.

CB

 

[XL-entLady]

Steady,

I could have read obama's proposal wrong, but the gist I got from it was that he would allow for 2 $10,000 withdrawals w/o any taxes or penalties. Oe in 2009 and on retroactive for 2008. But after reading some of the posts here, I'm beginning to think that I read the messiah's proposal wrong. I'll continue to contribute matching funds, 5%, but I'll be all over the tax free withdrawal, like a bird on a june bug.

CB

My understanding is similar to CB's. If that's correct, I think that could allow my husband and me to have $40k (in two years) that could go into an account that is much less restrictive than TSP. It would still leave the vast majority of our retirement invested in TSP ("full faith and credit" is not a bad thing!). But that would allow us to have a reasonably substantial sum in a much less restrictive environment.

At this point I must confess that my only IRA is a four figure one. After paying for colleges and weddings and paying off all our short-term debt when we finally saw the light, there hasn't been much opportunity to build an IRA until lately. And I haven't actively managed the small one I have. I'm just learning how. And this MB is invaluable there too!

This is a subject I'm really interested in now, as I realize more what the TSP restrictions have done to me in this volatile market.

Thanks, Show, for allowing this discussion in your home!

Lady

 

[Steadygain]

Steady,

I could have read obama's proposal wrong, but the gist I got from it was that he would allow for 2 $10,000 withdrawals w/o any taxes or penalties. Oe in 2009 and on retroactive for 2008. But after reading some of the posts here, I'm beginning to think that I read the messiah's proposal wrong. I'll continue to contribute matching funds, 5%, but I'll be all over the tax free withdrawal, like a bird on a june bug.

CB

CB,

This is the very first I've heard anything about this AT ALL.

I don't understand this. How can Obama (or anyone) let us withdrawn money TAX FREE. I think that is very wrong and is in essense an attack against anyone who is not a Federal Employee.

I believe every dollar should be taxed regardless of who you are.

 

[alevin]

CB,

This is the very first I've heard anything about this AT ALL.

I don't understand this. How can Obama (or anyone) let us withdrawn money TAX FREE. I think that is very wrong and is in essense an attack against anyone who is not a Federal Employee.

I believe every dollar should be taxed regardless of who you are.

Steady, the proposal was not specific to the TSP, since general public has no idea and it would be meaningless to them. the proposal is about withdrawals from 401Ks, maybe IRAs (not sure about IRAs, didn't read it THAT closely, since I have no intention of doing so anyway).

 

[KevinD]

Anybody got a link?

 

[Steadygain]

Steady, the proposal was not specific to the TSP, since general public has no idea and it would be meaningless to them. the proposal is about withdrawals from 401Ks, maybe IRAs (not sure about IRAs, didn't read it THAT closely, since I have no intention of doing so anyway).

If any potiential President proposes TAX FREE withdrawls across the board for $10,000 to $20,000 a year on Retirement Accounts.

I think that's an excellent plan.

Thank you Alevin !

I may be misreading - as I seldom have time to really chew and digest the posts I read - but this sounds wonderful to me.