401k funds putting locks on your cash

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Interesting article. Since the recession, certain companies, are not allowing individuals to withdrawal their 401k savings. They are saying it is hurting their "collateral" one fund says that all of their holdings are into property and droves of people are requesting liquidating, which represents 26% of their assests. So they cannot allow it. They locked everyone from withdrawing from their 401k funds. is that even legal?? http://articles.moneycentral.msn.com/Inv...ash.aspx?page=1
 
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Why would you want to take money out of your 401K now that the market is recovering???? When you sign up you are agreeing to their stipulations on withdrawals.
 
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 Originally Posted By: rshaw125
Why would you want to take money out of your 401K now that the market is recovering????
It's about phase relationships. Why would one assume that those requesting it are not out of alternatives/options? It doesn't matter how near the next gas station is if my tank is empty NOW.
 
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Now that the market is recovering? From what source did you hear this? Unfortunately, the commercial real estate sector problems haven't hit yet..there is more to come. When your entire economic structure is built on consumer/commercial debt, it has to run full course before recovering. I took out mine back in mid 2008 even though I didn't need it. When banks are failing all over the place I want my money for just the reason stated in this thread...nobody reads ALL the fine print, we all know banks are crooked and I don't want my money to be denied me to protect their interests and my tank to ever be empty.
 
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 Quote:
I don't want my money to be denied me to protect their interests and my tank to ever be empty.
I wanted to add that. As I matured, the biggest lesson I learned was that there's always something that's going to hit you from left field. Now I'm a lot closer to baseline than I've ever been, but I have no delusions that this is over. I'm still in a defensive posture ..and plan on staying there for just about the rest of my life.
 
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 Originally Posted By: Cutehumor
Interesting article. Since the recession, certain companies, are not allowing individuals to withdrawal their 401k savings. They are saying it is hurting their "collateral" one fund says that all of their holdings are into property and droves of people are requesting liquidating, which represents 26% of their assests. So they cannot allow it. They locked everyone from withdrawing from their 401k funds. is that even legal?? http://articles.moneycentral.msn.com/Inv...ash.aspx?page=1
I would say this is a poorly written MSN article. Or maybe it's your word choice in your post. It's not the employers nor the 401K administrators putting the hold on withdrawals. It's the fund companies themselves.
 Quote:
When Ed Dursky was laid off from his job at a manufacturing company in March, he couldn't withdraw $40,000 from his 401(k) retirement account invested in the Principal U.S. Property Separate Account. That fund, which invests directly in office buildings and other properties, had stopped allowing most investors to make withdrawals last fall as many of its holdings became hard to sell.
It's not illegal for funds to do this (it would be if the employer tried this stunt). Read the Prospectus fellows. In these case it looks like no one can cash out of some of these cheesy funds, not just 401K holders.
 
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 Originally Posted By: Smokescreen
Now that the market is recovering? From what source did you hear this? Unfortunately, the commercial real estate sector problems haven't hit yet..there is more to come. When your entire economic structure is built on consumer/commercial debt, it has to run full course before recovering. I took out mine back in mid 2008 even though I didn't need it. When banks are failing all over the place I want my money for just the reason stated in this thread...nobody reads ALL the fine print, we all know banks are crooked and I don't want my money to be denied me to protect their interests and my tank to ever be empty.
According to Bloomberg the S&P 500 is up 37% since March.
 
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 Originally Posted By: rshaw125
 Originally Posted By: Smokescreen
Now that the market is recovering? From what source did you hear this? Unfortunately, the commercial real estate sector problems haven't hit yet..there is more to come. When your entire economic structure is built on consumer/commercial debt, it has to run full course before recovering. I took out mine back in mid 2008 even though I didn't need it. When banks are failing all over the place I want my money for just the reason stated in this thread...nobody reads ALL the fine print, we all know banks are crooked and I don't want my money to be denied me to protect their interests and my tank to ever be empty.
According to Bloomberg the S&P 500 is up 37% since March.
You do understand that they're just trying to lull you into a false sense of security, don't you? It's the secondary shark market that's trying to lasso those that still think they can come out on top. (j/k )
 
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