401K withdrawal

It's basically a rollover IRA. So there's no IRA limit on contributions per year. Once the account is opened, it would be in a regular cash account or money market account and then you can just buy or sell shares whenever you want and it can all be done online. Normally you would do a trustee to trustee transfer but because the CARES act treats putting the money back in as a trustee to trustee transfer, there's no downside to doing it that way aside from missing the gains/losses while the money is out of the market.

Or I suppose just a regular cash account in a brokerage account. But dividends and capital gains would be taxed every year unlike an IRA or Roth. I don't think that puts you ahead over the long term even though you avoid the 10% penalty. Best to just spend what you need and then put the rest back within 3 years.
Only time will tell. But the good thing about ETF is that they are really cheap (as as expense ratio goes) and almost never pay capital gains (as opposed to mutual funds). And unrealized gain wouldn't be a taxable event. So, nothing to be taxed unless sold.
 
Only time will tell. But the good thing about ETF is that they are really cheap (as as expense ratio goes) and almost never pay capital gains (as opposed to mutual funds). And unrealized gain wouldn't be a taxable event. So, nothing to be taxed unless sold.
For an S&P 500 index fund, I don't think any ETF beats Fidelity FXAIX at 0.015% for an expense ratio, I think Vanguard VOO is close, but they're double at 0.03, down from 0.04. Those EFTs don't have the volume of Fidelity's fund so their expenses are higher. Capital gains doesn't matter if they're in a Roth or IRA. Plus you have to buy whole shares. With mutual funds, they go out to 3 digits for shares so you can almost invest every last dime. Also so far this year no capital gains, we'll see what happens in December. I think you don't really get them unless S&P changes the stocks in the index, then when they're dumped you might get some gains. I think the advantages of an ETF over a mutual fund in an index fund is minimal. Probably the only major one I can see is that you can trade in and out of it during the day whereas the mutual fund you're limited to the price at the end of the day. If you hold for the long term, that doesn't really matter.
 
Had my 401K cashed out today. Getting laid off in two weeks due to C19 (O&G sector) so figured I'll take advantage of 10% early fee waiver as well as 3 yr to report the "income". Will be waiting for the dip to go all in. Anyone else doing the same or am I one off loco de russo?

Just wondering if you're still waiting for the dip or if you went back in yet.
 
Lots of misinformation on this thread.

Did you read the whole thread? A lot of it has been addressed and covered in the thread. If you see any others that are outstanding, please feel free to point them out.

I only bring it back because it was about market timing and it doesn't seem to have worked.

Yet.
 
Just wondering if you're still waiting for the dip or if you went back in yet.
Haha, good one. No, no more waiting on the dips, lesson learnt. Being back in the market and trying to recoup the losses. Got back fairly diversified with not only large cap and tech, but small and medium sector which was a right call - they've been the best performing over the past couple of weeks.

EV market has been pretty hot lately but took a dump today. Some good runs with over 100% growth in a day. Not sure if you're in these kind of things.

Happy Thanksgiving!!!
 
Some say a double dip recession is on the horizon....

Whats going to happen to the 60M folks not paying their rent and mortgages ?
60M = the combined population of California & Florida.

All my accounts currently keep going up and up, hitting new highs.

Is it a good thing to have “some cash on the sidelines” ?





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Some say a double dip recession is on the horizon....

Whats going to happen to the 60M folks not paying their rent and mortgages ?
60M = the combined population of California & Florida.

All my accounts currently keep going up and up, hitting new highs.

Is it a good thing to have “some cash on the sidelines” ?

I just question where you get 60 million. Number of loans in forbearance is about 3.5 million. The difference this time is that loans weren't given out like candy last time and the housing market is up, not down. So worst case is that instead of foreclosing, you sell the property and get whatever equity you can out of the property.


The CDC eviction moratorium expires at the end of December and it takes a week or two to start the eviction process. I believe the president elect has said he would extend eviction and foreclosure protections once he's in office so just more of kicking the can down the road for now. I don't really try to anticipate how the other shoe will drop until it actually drops.

As for your theory, the answer is the same as before, who knows? A bunch of people bet one way last time and got out of the market. Not a peep from them lately. That's the risks inherent in investing, you get the ups and the downs. But one indicator to get out was when shoe shine boys were giving stock tips. Is that happening yet?
 
I always have a bit of cash on the sidelines in the portfolio.

In addition to cash in the savings account.

Both are prudent.
 
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