“People Are Desperate” - Emergency Withdrawals From 401K’s Surging in America
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- Опубликовано: 8 окт 2024
- Patrick Bet-David and the Home Team react to the news that emergency 401K withdrawals are skyrocketing among.
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Patrick Bet-David is the founder and CEO of Valuetainment Media. He is the author of the #1 Wall Street Journal Bestseller Your Next Five Moves
I'm left struck with thousands of dollars disappearing from my 401k due to soaring inflation. Where can I safeguard and grow $500k cash for next 2 years at no risk? my goal is to retire early and afford my lifestyle after retirement.
You need to create your own process, manage risk and stick to the plan, through thick or thin or you can just seek the help of a financial advisor.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good strategy to plan for retirement, hence I engaged the services of a true market strategist to help rejuvenate my $700k portfolio and boost performance and returns by 90% in a little over four years.
There has been so much knowledge shared here, I'm at a crossroads with my portfolio and would like to see it grow in view of retirement. How can I reach this professional?
*Sharon Louise Count* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.Thanks
We have experienced the peak of an era and now it is over. The recession destroys everything, including RRSPs. My retirement portfolio of C$400k is in the red. I keep losing because of uncertain economy. I'm sorry if you're thinking about retirement and worried that your pension won't be enough to cover rising living costs. Terrible foreign policy, bad regulatory policy and bad fiscal policy everywhere..
We're all concerned about the future and our financial well-being in these uncertain times. It's a precarious period, making it difficult to make significant changes on your own. As a result, I recommend reaching out to a professional who can assist you in reevaluating your portfolio by enhancing diversification and minimizing risks.
Absolutely, my friend! Your advice is solid. I've been smart and frugal with my money, investing in the stock market. I'm up 200% in the last 13 months, with over $380k in profits. Seeking guidance from an experienced CFP has helped me outperform the markets. Good personal financial management is crucial, especially with the upcoming global finance storm.
I hope it's okay if I inquire about your recommendation for the financial advisor you've been using. I'm facing some challenges managing & growing my portfolio during this period.
I take guidance from ‘Mrs Marisol Cordova, a well qualified Florida-based financial advisor with over two decade of experience, luckily her profile is widely visible on the internet, you should simply research.
Appreciate this recommendation, hopefully I can get some insight to where the economy is headed and strategies to beat inflation with when I hear back from Marisol
I pulled my out but it’s based on illness. I’m trying to enjoy what life I have left. I wish everyone peace and happiness.
An old man sitting on a big nest egg told me “the golden years are gold plated”….He said , “I have a lot of money but I am lonely, my body is failing me, and all my friends are dead or facing declining health too. Just live life. Nobody knows what is waiting for them down the road.”
Most people with money know this. There are stories as far back as Alexander the Great that reflect the same sentiment. I would say the most recent example of this end of the road reflection was Steve Jobs. Rich people k ow this logically but most fail to show that they truly believe this in ther actions. Look at Bill Gates, Warren Buffet, and others who say their wealth will be distributed to help humanity after their deaths. Lol. Bs. Their money will be managed by a soulless organization that uses that money for some form of strategic objectives. Don't get me wrong. I am not saying I think the wealthy should go around handing out their cash. That solves nothing. But they could be doing a lot more with their money while alive.
Atleast he has peace of mind lol imagine being broke, all your friends dead or dying. Sounds worse right
@@lupinlongwayy5831lmao right OP is nuts
imagine having all those problems and STILL being broke. tell your old man to stop compaining it could still be alot worse
@@thanosianthemadtitanic Millions of people die a year before whatever their retirement age would have been. You are right, and so is he. Best of travels my friend.
I had to take out 12k of my 401k to pay off my wife’s car and our credit cards. After tax it was about 9k. She got sick and it was the only way we could afford the cost of living. Our mortgage went up 500 dollars a month because of taxes and insurance and by paying off the credit cards and car we got about 500 dollars back a month so we could pay our mortgage while she was sick. It’s hard out here man. People are just trying to survive. You lose touch a little bit when you get to the position these guys are in. It’s about putting food on the table man
Exactly!
I recently did a 36 month loan to consolidate 2 credit cards and med bills . I'm not struggling , but have been there in the past 5yrs. These guys calling their patrons dumb to their faces is wild.
Good luck friend. 🤟
Nobody should be "just trying to survive".
People nowadays live just so they can work. What kind of existence is that
U can always get a part time. Problem is people are lazy they don’t want to do the extra step because screw it we can put it in the credit and figure it out later which means we will just blame the economy and life instead of taking responsibility. Things happen people get sick that’s why having an emergency savings come in ur problem comes from many years prior of poor preparing not my wife got sick and can’t make ends meet. Bs do better get ur ass up and work more no excuses
@@tf5994 brother you know absolutely zero things about me. Your assumptions are so wrong you could not imagine. I know this is the internet so faceless scum like yourself just say random things with no filter because it makes you feel good. You’re clearly illiterate just based on your grammatical errors. likely still a child. You will learn one day. I do work hard. Shit happens. You can’t be prepared for every occasion. You’ll learn that eventually.
I'm probably months away from renting a storage unit for my belongings and living out of my car.. I make more money than I did in 2019, but I feel twice as broke. It's absolutely insane
Spend less. How much are you spending on food per month? What kind of car do you have?
Worst comes to worse, when you get off work consider doing an hour of Doordash to make some extra income
Buy a used RV or camper and an acre of land somewhere and live off grid. There’s thousands doing that at this point.
@@nextjin and what American wants to live a joke of a life like that honestly. Living a hermits life is pathetic. I’d rather try to make the money. Not only that RVs are expensive.
@@JonnyBeoulveHour of door dash to profit 12 bucks? 😂GTFO BOZO! Unfreaken real with that bullshyt!
Same here I make 38 dollars an hour
Sadly im one of the people who had to do this recently. It sucked. Just had bills to pay right now. Cant be thinking about retirement when the mortgage is due
Fair dude. Head down, beans and rice and get back on track!
People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor, I'm currently retired.
Indeed, that's accurate. I'm currently in my mid-50s. My wife and I were on a similar path until a couple of years ago when I decided to shift my investments to her wealth manager. While I haven't quite caught up to her accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
It's regrettable that many individuals lack access to such insights. I understand why people might become anxious. Insufficient information can indeed pose significant challenges. Personally, I've been able to generate over $25k passively simply by investing through an advisor, and the best part is, I don't need to exert much effort. Regardless of economic fluctuations, skilled wealth managers consistently deliver returns.
Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative investment strategy to effectively utilize them.
Stacie Lynn Winson serves as my advisor, bringing extensive qualifications and experience in the financial market. Her deep understanding of portfolio diversity positions her as an industry expert. I suggest delving into her credentials for further insight. With her considerable experience, she offers valuable guidance to anyone seeking to navigate the complexities of the financial market.
I've taken the initiative to research "Stacie Lynn Winson" online and verify her credentials. I'm impressed with her expertise, and I've reached out to her to share my financial market goals in detail.
I cashed out my 401k in June. Cost of living is out of control.
Move to a country you can afford
@@christopherm202dcfinest2yeah China would be a good pick, possibly North Korea. Thanks bye
How old are you?
@@gridtac2911 move there 🤷🏾♂️you’ll love it
@@christopherm202dcfinest2he’s moving to your house 😂
Impressive video. I started a bit late (graduated from my doctorate program at age 30 in 2016 with 170k in school loan debt). Managed to pay off my debt by 2019 and currently have a house and 250k total in investments (combo of profit share, 401k and a brokerage account). I'm not very knowledgeable with investing, so I have all my capital currently vested in index funds but considering the dollar dumping and current inflation crisis. How optimal would this be beneficial long term?
Ever considered financial planning? There’s a vast amount of ways to yielding a high income in the financial market but that you’d need to pick out an asset first, how much you want to invest & how you wanna invest.
Markets are oceans not lakes. The aid of an institutional or basic financial managers cannot be over expressed. Take myself, having encountered quite a number of bad trades, I realised following my current Portfolio managerr, how entry, capital, exit, goal and more differ on each assets. Currently hold , I have a $122k portfolio averaging a 12% monthly roi in less than a year following - JULIE ANNE HOOVER -so I do know the importance of basic knowledge and delegation.
@@AbdoolLogodesign I’ve actually been thinking of reaching a brokerage-adviser, my 401k and stocks been losing everything it's gained since 2019, how can i reach your Adviser
Julie Anne Hoover maintains an online presence that can be easily found through a simple search of her name on the internet.
@@AbdoolLogodesign Thanks for sharing this. I did my own little research, and your advisor looks advanced and experienced. I wrote her and dialed her twice but she didn't pick up so I scheduled a phone call.
It's so awful. Being desperate for money is such a horrible feeling. I literally have anxiety at nights in bed wondering how in the world I'm going to live in my later years. This is no way to live.
What’s your job?
well you better get used to it because its gonna get alot worse before it gets better. its for this same reason i cut back my unessaercy spending and now saving at least 20% of my income each month
Moving to another country wouldn’t be the worst idea
@mario9739 where are you gona go? The US state department just issued a level 4 travel advisory warning ⚠️on half the planet. Which if you don't know means "extremely dangerous, do not travel/move to"
@@xanaduseAnd you'll be paying even more doing so. Any other crap ideas you wanna add?
As a soon retiree, keeping my 401k on course after a rocky 2022 was my top priority, but I have been reading of lnvestors making up to 250k ROI in this current crashing market, and it’s overwhelming. any recommendations to scale up my ROI before retirement will be highly appreciated.
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.
Having an lnvestment advser is the best way to go about the market right now, especially for near-retirees, I've been in touch with a coach for a year now mostly because I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $320K in profits so far, Its clear there's more to the market that we avg joes don't know that Investment advisors know
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
My advisor is *Sharon Louise Count* You can easily look her up, she has years of financial market experience.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Property tax and home owners insurance have gone way up. No one can keep up.
We have 4 houses and have no issues paying our obligations...having a job helps man
@@billiamc1969 Yeah you're about as out of touch as it gets, a single home costs more than the median household income by itself, let alone the rest of lifes expenses. Your attitude shows you're either lying, or you've had help getting everything you've ever had in life.
Florida
I wouldn’t say no one. We are doing the best financially than we’ve ever have in our lives right now. Paid off mortgage, 0 debt of any kind, 2 year worth of emergency fund saved up, fund 2 kids 529 monthly and maxing out our retirement accounts yearly. We also even started a taxable account with extra cash.
@@billiamc1969 Its not enough for the "average" person living paycheck to paycheck even with a job. Inflation on everything that keeps going up will eat you up and you still can't meet COL. Folks have exhausted their savings and are working on their retirement. So its not just about folks cashing their retirement in fear of 2024.
All my family & friends made fun of me for living in the same house 30years and driving a older car. A close relative told me I look like a pauper. Now those same people are broke! I loan $ to family & coworkers only if they have collateral items like jewelry etc. I give them opportunity to get it back once paid back. However, the asking of $$ has stopped now that they know the terms... I've been debt free for 20yrs..
Smart man
You the man
Similar here, except for the loaning money out.
I had a girlfriend many years ago who used to tell me that I looked like I was destitute because I wouldn't buy designer clothes. Today, she's a broke, 45 year-old renter who had to move back in with her parents TWICE as an older adult. Meanwhile, I paid off my home this year, 17 years early and am debt free, looking to be able to retire in 2 years at 55 if I want to.
I've been working with the same people now for almost 30 years and while they never made fun of my lifestyle, they sure are admiring me now for being financially comfortable while they still struggle with unending monthly bills, expensive mortgages on very nice homes that they'll never pay off early, and the end of the re-fi days that allowed them to pull lots of cash out of their homes to buy new toys and vacations. A lot of them also depend on that dual income to support the lifestyle they have.
Living below my means for more than 25 years sure has paid off now in my early 50s.
@Shadow_Banned_Conservative all depends on if you plan on living in that house forever. I plan to retire, sell everything, and move to the boonies on land. Collateral will get you there just as good as being debt free.
4:11, 'when you broke you're desperate, when you're desperate you're stupid' . May ring true but end of the day if your about to lose your home then desperate measures are needed.
The inventor of the 401k had stated that people are using the program in a way that it was not intended. Basically, companies are now incentivized to offer 401ks over pensions and put the responsibility of risk onto the employee which is really the plan manager who just uses a cookie-cutter solution. Most companies also know that the vesting period for the company match roughly matches the average tenure of most employees today (between 3 to 5 years). So basically, employees who are, at large, ignorant about the market are pushed into the casino with the company match dangling in front of them as the management fees (the casino cut) eat into a significant portion of your gains. Not saying 401k's don't work, they can work but most success stories seem to arise more out of timing and luck.
Back when this country was on the gold-standard, people could just save their money (in gold) and retire comfortably since mild deflation is a natural by-product of a gold-money economy. There was no need to take risk in the stock market unless you wanted to speculate. Today, people do nothing but speculate and they call it investing.
So half of warren buffets holdings are aapl is he speculating on that?
@@benf4570 Most plans aren't Berkshire Class B or A shares.
@@benf4570 Does APPL stock issue quarterly dividends? If so, then you are investing most likely. Sure you can still be speculating on price appreciation but if a company does NOT issue a dividend, then you are, by definition speculating. My definition of an investment is where an asset is paying you to buy and hold. Meaning you are getting paid a yield while you are holding. In real-estate, this is what differentiates a landlord from a flipper. One is an investor, the other is not.
100%
@anacap007 Amazingly coherent comment. Don't forget the selling point of "company matching" deposit. I wouldn't go as far to say a 401k is a scam but people need to be more financially competent. (thats a lot to ask but so many people just getting screwed)
PBD will say: "It's because people aren't returning to the office"
🤣
😂😂😂
Or because they aren’t working 70hrs a week as the standard
Lmao
@@ethxo6734 Pat's definition of "hard work" is running a multi-level marketing scheme and getting rich off it, then telling everyone else they need to work 70 hr work weeks or they're losers.
That’s his most boomer take he has. Y’all need to remember this dude prides himself on selling insurance. Not saying he’s not successful, he clearly has done well for himself, but he’s nothing short of a grifter with some good regurgitated messages. He’s a fiat shill.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family...
@rachealhubert74 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. Alice Marie Coraggio, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
Lookup with her name on the webpage.
@rachealhubert74 Alice Marie Coraggio her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy
Regular families are struggling so hard right now.
@@thedeerking5350poor people don't have that
It is not stupid when people are desperate and they ran out of choices!
Hes from a rich family he has no idea whats its like to not have access to money.
Stupid people are always out of choices. It's the defining characteristic of STUPID
💯agree. People have to live and if it's the last resort, then it must be done.
It's probably because they aren't willing to work 80 hours a week and are missing out by not being in the office. Right, Pat, buddy?
Lmao yup
yo facts
No it's cause they didn't ask what more can I do for less so my boss can feel his asshole tickle
Well Don't Be A Meanie 🙃
Just move to India, duh.
When you cash in your 401k to take care of a family health crisis its always helpful to have a millionaire tell you you've done something stupid. Thanks so much.
Right. These guys sound like the real idiots
We have been living outside our means for 20 plus years now. If you go to the local high school, the student parking lot looks like a new car lot. When i was a kid, 30 years ago, only the towns dr lawyer and such kids had new cars.
A big part of that is because the used car market has been wild over the last couple years. I see a lot of ads in my area from dealerships selling used priuses that have well over 100k in miles that are going for almost 15k, I'm talking models that are even as old as 2014. I've also seen a lot of stuff floating around online where many used car financing options are going for well over 10% in interest. It may honestly make more sense to buy a brand new car in a situation like this.
@@oglocbaby520 I think the OP's point is that highschool kids don't need cars AT ALL, new OR old. If he's talking about the same highschool he went to 30 years ago, it's unlikely the town has changed so drastically that kids aren't able to walk or bus to school, so sinking money into cars for them is probably an indicator that those families are wasteful with money and live outside their means.
I worked with a guy who kept buying his kid a car, and his kid kept totaling them. His kid totaled a Wrangler and Mustang just to give you an idea.
@@cassiuskurei I totally agree, the thing is a lot of kids get their driver's license as soon they are eligible and want to be driving their own car. There's definitely a cultural element to this in middle class/non urban America for sure. I'm 33, I remember when I was in high school a lot of the kids there had cars that were honestly relatively new(ish) and decent, it also didn't make much sense to me looking back on it. With that said, the comment I made about buying new vs. used still holds though. I personally wouldn't buy a brand new car for a brand new teenage driver lol, but I can see why some parents may do that.
It is just not cars. We do it with phones, game system’s, clothes and so much more. We spend 12 dollars on a coffee. We spend money like we rich. People didn’t do that in the 70’s and 80’s. Only when poor people got easy access to credit did we start over consuming
Oh I’m feeling it when I go into a grocery every week an watch everything go up in cost by25% as ourofficials say we can afford pointless money laundering wars.
Yeah I think you're right, the reason a chicken breast costs more these days than it used to is because Putin invaded Ukraine 😂
@@billwilson9602 lol it’s our politicians reckless spending making our money worthless they just hide it, but laugh cause it’s easier than admitting the truth👍
@@rikflare7970 Trump added $8 trillion to the debt in four short years, all of a sudden inflation is going crazy 😉
@@billwilson9602 I’m not saying that I’m saying this rigged game been going longer than most conceive,but most can’t see past their hand on this topic 🤷🏼♂️
@@billwilson9602 The cultist have lost the ability of objective thought. They want that dude back in office. They think he'll fix everything.
2009-2013 I took out 401k - Had to pay 10% penalty but avoided tax by taking just $10k a year. Missed all the gaines but was able to save my home that way. Couldn't buy a job those years!
Yeah totally was in the military those years lol. No jobs
I literally pulled 6k out of my 42,000$ 401k account for the first time ever because I’m 3 months late in mortgage and got a foreclosure letter
Dang. Sorry to hear that. What happened?
@@DK-mq9zfwasn’t responsible
U doing it wrong.
Exactly Man People Our In LaLa Land Man Hope Everything Works Out For You 💗
@@christopherm202dcfinest2 It's possible to be responsible and still have financial hardships, but you already knew that.
I believe that some of the people taking money out of their 401K are worried about a total crash. And if you dont hold it. You don't really own it.
Correct!! On January 2nd I’m completely liquidating my 401k because I’m worried by the summer of 2024 I would lose more than 50% of my investment.
@@allenmobley8444so basically you are afraid of a 50% crash so you liquidate it and withdrawal it and take the guarantee 50% loss. You must be desperate.
Amen. Did a hard ship withdrawal to buy a house right before the rates spiked
About 1.5 years before I retired in 2022, I moved my 401k money into a stable-value fund because I was concerned about a crash. That saved me from losing between $30-40k when the market started dropping. When I would tell co-workers about stable-value funds, they had no idea what I was talking about. Even though I was trying to give them useful information, I doubt they looked into it. The average employee just takes the standard funds offered in their 401k and don't do much, if any, research.
"You will own nothing and be happy" - W.E.F.
Eat the bugs
Problem with paying pay 401k, you’re paying back pretax invested dollars with post tax dollars
Correct
But the loan you took out you spent pretax.
I’ve had to pull out 80% of my 401k in the last few months that took me 15 years to save.
Dang
Daym. a friend of mine did the same. covid and the money printing plus rising intrest rates etc are just killing folks. Maybe we need to get off the money system
80%? Not to be nosey, but do you mind saying what/why you needed so much so quickly?
I got 4 loans from my 401k. and I still behind on my payments living check by check and making decent money in a good company. P.S. Thanks Bidenomics for the great economy
So sorry to hear this
Bank of America (BoA) stated that only 0.59% of all 401(k) holders are making emergency withdrawals. Nothing worth worrying about.
I lost my house, my car, and ultimately my job, but I listened to Adam and didn't touch my 401K 😅😅
And another part of the analysis is that people might be expecting a major recession, and rightly so. The values of 401k’s could fall by a lot more than 10 percent very quickly!
We are in a recession. Look forward to a great depression
We’re already in a recession.. it’s the depression that’s possibly comming
@@clemfandango5908 I agree. It will definitely be a deep depression.
You guys are both in a depression.
@@outofthebox5441 good one
The 10% penalty really can’t be waived. It has to be a certain category like medical expenses but even that just reduces the 10% not waive it all together
Only inherited 401K is the 10% penalty completely waved.
I've been researching investment brokers and I'm really interested in working with someone trustworthy and reliable. With the recent market downturn I'm looking for a broker who can help me turn things around and make a profit Can anyone tell me about their experiences with any investment advisor!
I've seen some excellent reviews online about Dustin Dwain King. While I haven't personally worked with him, the feedback from others seems overwhelmingly positive. It might be worth giving him a try based on what I've seen online.
I can confirm that Dustin Dwain King is a reputable investment broker. I started with him during a tough market period, and thanks to his guidance, I made over $150k within the first 6 months. He's definitely worth considering.
Credit cards + Auto Loans are at all time highs.
... Now throw in student loan payments that are barely starting... What could go wrong...
Don't forget taxes too. Each of the 6 different taxes i pay went up an average of 100 dollars this year.
throw in insurance (home, auto, etc.) and it gets even gnarlier@@PorterPickUp
The student loans + tution cost are a big scam as well smh. Can't even pay out of pocket for a community college like you could in the early 2000's
Many companies overbought inventory during Covid when there was a rush to get more products on the table. Some companies are still clearing out excess inventory from that time. This would be a good portion of why transportation of good is down.
When people are trying to survive, the last thing people do is invest in the stock market. These “millionaire gurus” are completely out of touch with what it takes for a normal person to survive
Yeah It's Really Sad Man 😔
Aaaaaaamen!
Long term it’s really one of the only strategies for survival. By investing you have a pot of money set aside in case times get tough. I agree though it doesn’t work in the short term.
@@martinlutherkingjr.5582
Can't invest if you're dead or on the street lol.
@@LembeckIsStaying Actually, some homeless people in Japan hold bitcoin. They hold up a QR code sign for donations.
November 1st was the final deadline for those that went into forbearance during covid. Some banks are requiring individuals to pay the forbearance back in full. Could be some of the reason folks are resorting to pulling 401K
You have an option to take out a loan in your 401k thus paying it back as such. Most people are taking out hardships because the loan option in there 401k is already in use, leaving people no choice if they want the money in their retirement funds they have to use a hardship withdrawal
You’re forgetting a group of people … people like me who have abandoned getting rich in favor of getting out of debt 100% and re directing my life towards obtaining more freedom for myself because my time becomes more valuable every day I grow older where the usd becomes worth less and less every day that goes by
The thing with PBD and his members is that they are not digging deeper into why are people pulling emergency money out of their 401K?
They see this issue unidirectional only, and correlating the credit card debt increase with this and concluding that the “average american needs better financial education” (for sure most do, but we dont really know why most people ended up on debt to begin with)
@@alanbejarano4940
Your correct about more education is needed. I’m down to 155k on my 500k home. Then I will be free. I grew up believing if you work hard and save you can retire comfortably one day. Now as I turn 40 I realize it’s all a joke. I’m enslaved by the USD and all I want is to be a free man who lives his life money is slavery Freedom is life
We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! Just purchased some AE
Recession started 2020/21 with the shutdowns. Inflation started in 2020/21 with the free money, PPP grants, etc. The money printing hid the recession because people dumped it into real estate and the stock market but if you measure recession in real wealth that's when it started.
We're all gonna make it brahs
Epic Zyzz quote
I don’t agree with Dave Ramsey on everything, but he’s correct when he says “I’ve never met anyone who had a financial breakthrough gaining points on a credit card.” It’s a scam. The credit card companies are saying “gotcha” right now.
They're only saying "gotcha!" if you don't pay off the balance, with no interest every month. I love my 2% to 5% cash back that comes every month. If you can't pay it off in full when the bill comes then you can't afford it.
I bring in at least 2-3 grand per year, sometimes more in credit card signup bonuses and cashback. It's called being calculated, reading the fine print and paying your balance in full. May not be a lot to some but some years I can pay a couple months' rent off of those "points." Sadly though, that is the exception and not the norm.
My previous job forces me to have an IRA when I started. When I left, I had to withdraw those funds because of desperation. I used what I had even though I didn’t ask for it at first.
you cant be forced into an IRA, so this is not accurate
During COVID I took out a 401k withdrawal tax free to start my business. So in some cases it does make sense.
You think the majority of people are taking money from their 401(k) to start a business or to pay their bills?
That's an investment. That's different. Most people are looking to spend the money.
Not possible unless you took out Roth contributions or took out less than your deduction. Traditional 401k withdrawals are taxable, there’s no way around it. Perhaps your referring to the 10% penalty which was suspended for Covid and you could spread the recognition of the income over 3 years. Source - I’m a CPA
If you didn't pay taxes , you will !
@@jcman240 my parents are CPAs so there were ways around avoiding to pay taxes.
my 401k has been taking a hit for the last 4 years and has yet to rebound. I've been trying to be patient, but man its tough to look at those numbers every month.
same
Dude, you need some different funds.
Think of it like a spring. When the market is down it is getting compressed; you’re not actually “down.” Just keep buying, when the market rallies the spring will be released and all of your efforts will have paid off.
@@zoraster3749 I keep telling myself that. Just waiting for that spring to be released, lol. But thank you for the encouraging words!
My guess: property tax increase, ARM change (mortgage), student debt restart, insurance sudden increases and job loss are all big reasons that people are tapping into their retirement.
Most Americans do not have much available in liquid emergency savings. They probably were maintaining ok through summer but now big increases in these costs are hitting in the fall. Most are unprepared to meet all the cost increases.
Add to that food and gas costs.... it is a middle class disaster out there right now.
Exactly and you mentioned job loss. I find it odd nobody is really talking much about the job market right now and how companies are firing or cutting back like crazy. I believe an article just came out estimating as much as 50% of the jobs posted are ghost jobs, as in not real positions or jobs companies aren’t actually seeking to fill.
Really it's the one-offs. Car needs new brakes. Water Heater went out. Dog has Kennel cough and needs the vet. etc etc etc.... All that crap costs a ton now. The days of someone from the trades coming to fix something in the house for 2 or 3 hundred dollars are long gone. Now they want almost 500 just to snake a drain. Lord help us if we need a new AC or a new roof. It's a slow decline into poverty.
Oh man those ARM mortgages are a killer in times like this. I have friends who are feeling that sting atm.
Starbucks is killing their workers right now. No labor, no hours, etc.
People don’t care about the tax if the emergency is real. That’s just facts.
I friend of mine imports items from Brazil to sell wholesale and retail. For the last three years shipping cost have been up 3x from before Covid. This year the shipping cost came back down to precovid prices. I asked them if that meant they were going to lower prices and they scoffed. Just because their cost came down doesn’t mean the cost for the consumer comes down. All this about “ cost savings so prices can be kept down “ is some businessy bull spit. The retail customer is the sucker at the end of the line always getting the short end of the stick and that’s capitalism baby.
I hope your friend realizes that if he lowers his prices even by 10-15% he’ll increase sales volume significantly. Long term he’s hurting his business and customers.
@@menumlor9365 For some reason most businesses don't understand that concept. I doubt this "friend" understands it either
Was talking about this at work today. It's worth noting that the interest is so high on 401k loans that it's almost better taking the hardship withdrawal, as it only comes with a flat 10% Federal tax penalty (as well as regular taxes paid). I believe the loan would also come due upon termination.
When you get terminated or resign, you can continue paying on your loan. I did that when I left my last job. Either it's a myth to disincentivize you from taking a big loan, or I fell into a loophole.
@@jitterspec It varies by plan. You had a good, non-predatory one.
The difference is that the interest for the loan is being paid back to yourself so it’s still your money. In the case of a withdrawal you flatout lose that 10% in federal tax and it goes to the government. Always take the loan over a withdrawal unless you’re 59+
@@NEJIVIBEZ There is no "always". The situation is different for everyone. In some cases, yes, you're paying the interest back to yourself, but it might be decreasing your take-home pay in a detrimental way. And odds are, if you're reviewing 401k options, you probably have some other investments working for you that can be cashed out or maybe a loss/writeoff that can offset the increase in taxable income (the 10% penalty is separate). And frankly, the amount you are allowed to put away for a 401k and the lack of investment options in MOST of them make them less desirable than an IRA (provided you invest wisely, of course).
@@llkg9there's no such thing as a predatory 401k loan. All of that interest is going to you...
The sample size theyre discussing is weak. 60M Americans have a 401k. They said 18k withdrew from 401k that quarter, which is less than 1/10,000 percent of 401k holders. The 13% increase over prior quarter is weak too, thats 3000 more people than prior quarter. If u told me that the number went from .5% of holders to 1%, than thats barely a big deal. Thats 300k more people quarter over quarter. Theyre not tho, theyre talking about 1/100th of that kind of move.
Economy ➡️ 💥
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement.
Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.
I have thought about it, but haven't figured out how to get consultation, I don’t live in a big city.
Really? Have you searched? Use any investor/advisor tool. Look for Monica Mary Strigle I am close to retirement with 1.4 M to my name outside of retirement accounts. I hired her services 3 years ago, she contributed immensely to my portfolio progress.
What is her fee structure like? Are her services available to about anyone? Can you share more details?
mine quit growing. At all, i'm not taking out but i'm sure as hell not going to continue shoveling sand into the tide right now.
I cashed out one of my 401Ks in 2021 before it started to tank. Yes I took the penalty hit but I paid off my house. People thought I was crazy (probably) but I do not pay a mortgage or interest on that mortgage. Now I am able to increase my current 401K contribution with the extra money I am saving which is now putting me close to the max I can contribute. Was it a bad idea? Maybe, but I also own my home and I have more flexibility with my money.
I think you did right. I took a similar path and feel stocks have been poor investments for years now.
Sounds like you were broke! Definitely not a good decision but then again I don’t know your age. But knowing that you took your 401k early tells me you had nothing in your savings! Best of luck
@@SeanNMathis85 I wasn't broke and I had about 20K in savings. We are a single income family and we were doing okay. Getting rid of my house payment helped position us to battle the insane inflation though.
PRAISE THE LORD, FOR HIS WISDOM & (MORE SO) "HEARING WHEN HE IS SPEAKING" !
A little of your own IS BETTER THAN A WHOLE LOTS OF SOMBODY ELSES!
@@onreanStocks have done quite well, the S&P 500 is up nearly 100% since the Covid lows. It could be you’re in a fund with a really high expense ratio or you got in at the top.
I withdrew from my 401k for my cocaine habit.
lmfao bro
Hunter?
I literally just had to do this to pay for $2k dental work with insurance and because my car has yet another recall (2015 Hyundai Sonata hybrid) and the insurance rate skyrocketing from $112/mo to $335/mo. So glad Hyundai is raising their workers wages so they might actually make decent cars moving forward that can’t be stolen in under a minute, and won’t spontaneously catch fire like the old Samsung phones. What a time to be alive.
(Before anyone suggests it - I am waiting to sell the car for income tax because of this increased theft ordeal most insurance companies are denying coverage altogether on these Sonatas and the resale value is hot dog water so im upside down about $5k. The hope is it levels out a bit more between now and then).
Don’t. Ever. Buy. A. Hyundai or hybrid.
Just bought the most theft proof car. 2023 Mazda 3 Manual drive. Decent car, gearbox seems to sometimes not like first gear though but other than door panels not lining up 100% seems to be well built
This is the last resort for a lot of people.
I can name so many products, goods and food that we’ve seen double in cost in our area. Rent has nearly doubled in my area as well. Ever since COVID when big daddy government demanded we stop working, economy has gone down hill. I’m still in awe we took that in the behind and stayed home, accepted government checks. So many in corporate had the opportunity to work from home meanwhile servers, construction, hospitality workers, and other similar jobs were all out of business for minimum a year. Yet seems no one in corporate/finance understand the gravity….
Food that has doubled?
Yup. Thought about it a few times. Not there yet.
I learned from 2008 & have 1.5yrs of prudent reserve.
Slow business year, hope I don’t have to use much of it😬
Now companies are changing the rules to prevent us employees to withdrawl our money unless we leave the company or were 65 I'm 27 and just got laid off its supposed to be temporary but I tried to withdrawl some money from my 401k because im struggling and T Row price denied my withdrawl.
Totally understand your frustration they just keep making rules so that the average American is disenfranchised from accessing their money. But they would like to use our money to boost stock.
Not your keys not your coins
bring a mask and a gun and bet you they'll approve it
You must be confused. The money YOU INVESTED is 100% yours and can be withdrawn.
Company contributions have a limit on them. That money you cant take.
That's 100% fair
@@Dre2Dee2 want to bet ?
Withdrawing 401Ks decades earlier before your actual retirement is not a good idea.
Bidenomics, gotta love it! In Trumps economy my wife and I actually were able to put money in our savings. Today, we don't have any savings and we're living paycheck to paycheck. We're barely surviving.
@@theLionandtheLamb1thank you!!!
Name one policy that affected that?
@@saltyp123 day 1 shutting down XL pipeline.
@@nivekoldagyz1349 Welll...you're not the guy I replied to ...but please explain how that ruined our economy?? Explain how it's not stock buybacks and overseas manufacturing. Explain how Trump used emergency covid money and every American got a boost in their savings and not because of his "brilliant" economic mind. Explain how PPP loans are what caused inflation and who was responsible for that???
@@saltyp123 Trump: America had become energy independent:
How XL pipeline affected economy? Increased price of oil especially due to democratic push for EV (green energy) which is actually more inefficient still than oil.
I work in client services and I see this everyday. Lots of people buying gold scared of volatility
If you have a 20,000 401k and 20,000 in credit card debt it makes more sense to cash out the 401k and pay off your credit cards. Which I did 15 years ago. The management fees for the 401k didn’t offset the gains and that was with 3 percent inflation. With high inflation it makes even more sense.
It gets worst. A substantial amount of people are being coached by real state agents to pull from their 401k to buy homes their clients can’t afford. Plus all the other people this video mentioned that have been hit hard by inflation, lack of financial literacy, and a weak labor force where employees don’t get paid enough. It’s a shame that we’re watching a great nation in decline.
Imagine having the luxury to mindlessly put 20k a year into a 401k
Yup detached upper class people telling you to just eat cake if you cant afford bread, allways the same sht 🤢🤮🤦♂️
It’s possible if you live with your parents on $137k a year.
my wife and I invest the max every year pretax. helps us not pay too much taxes and save for the future
I am putting full 22k 401k and 401b plan. So close to 45k a yr. How? I never understood financial freedom until my 40s and catching my up. Sure I make good money in tech but I don’t buy crap, I don’t have friends, or gf or wife or kids or addictions which that right there is the biggest expenditure in life growing up. I forcibly put all my money away so I don’t have the temptation to splurge such as buying a new corvette.
I’ve been a cop for 27 years. I’ll get a fat pension and I have been maxing out my 457 plan pretty much since I’ve started. I’ve got about $800k in that alone. I work 65-70 weeks and always pay myself first. It can be done. Hard work and discipline work most of the time. More people should try it.
According to the national debt clock Americans are adding $486,000,000 every 24hrs to Credit cards . Folks someone is not going to get repaid . That amount of debt can not go forever .
I quit my job and started a new one a few months back. I plan on cashing my 401k out and getting hit on taxes and fees at the turn of the new year. The economy is gonna collapse. Democrats printing money to fund illegals and proxy wars…it’s gonna come crashing.
Man I am one of those people... Got laid off and had to take a job making half of what I was making. Early on I got good leads on new jobs but those have all since and dried up. I don't see anybody really hiring It's mostly recruiters posting jobs and not companies. But needless to say because now I'm making half of what I was. Now I have a monthly deficit and have pretty much drained my whole 401k and on top of that had to take out a load to make it to the end of the year. Probably going to be homeless in 2024 😂
I e started two businesses in the last 18 months with business surging. Love it.
Some people are desperate, but other do withdrawing because they do not believe this money will be there after 5-10 years or going to have the same buying power .
I am one of the individuals that had to resort to this, something I personally preached to others to never do. As a triple whammy (the 1st being that I had to even resort to withdrawing), I just got nailed for the penalty from the IRS ($6k) because I did not fall into a relevant hardship category in their eyes (even though I pulled the money out to "live" and pay bills, as my small business was hurting because of the retail dip and cost of supply issues), and the third whammy is I have to pay back $2k to the Healthcare Marketplace because "you made more than you estimated you would make" - since the 401k money counted as "income". So I am hammered for $9k (401 withdraw penalty, health payback, penalty for not paying since I extended, and interest). This just hammers me further into the ground.
I have a candle company, with (at the time) 3 retail locations and online, plus wholesale. At the beginning of 2023 our wholesale dipped 80% (a sign of hurting businesses saving their $), and our cost of supplies kept (and keep) shooting up. Add inflation affecting rents, groceries, etc., foot traffic this holiday shopping season in town is down, online sale are down. We have a loyal base, but when people have to choose to live and pay bills vs. buy things that aren't essential - well, I can't blame them, I had to as well. There's a wholeeeee scenario playing out in the small business sector that no major outlets care to cover or talk about. All of my friends who are in other small biz/restaurants are seeing and feeling the same thing. I had to close one of my retail locations, the other will probably close within the year, and I have not paid myself in 1.5 years. It's all a nightmare scenario that continues to play out and has further collateral damage to the average consumer/small business owner to come, sadly.
People are losing and lost money in 401k. I lost about 20% in 2020 and never really saw that back. Maybe withdrawaling is the best option for now.
I truly believe if the stock market crashes. There won’t be any 401k’s left.
We need statistics on how many people took out those 401k early emergency withdrawls to afford a car to get them to work.
Otherwise i cant understand apart from medical emergency what else is making people so desparate they have topped up credit card, taken a heloc and now are dipping into thier retirement knowing ss is going to be bankrupt.
This is why Dave Ramsey recommends saving 3 to 6 months of living expenses. His plan works and it’s free. Meanwhile many people are spending too much on automobiles which depreciate as well. It’s the consumers lack of financial intelligence that’s the problem.
Dave ramsey hur dur dur, shut up
many people do not have earning issues they have spending issues.
now is not the time to go out by a boat and RV, a side-by-side, a bike, a quad or anything of that nature now is the time to hunker down and fill your freezer
People are in desperate times. The guy who said people are stupid pulling from their 401K isn’t in that situation. When your desperate and need to put food on the table, taxes don’t matter. Come on bro
That’s why the law needs to change !! For taxes and 401k etc.
401k is not a checking/savings account. It's a retirement vehicle
@@Striker50_ it's a ponse scheme contrived by globalist bankers. Not a "retirement" vehicle. You're giving your money to evil people, but you do you beau
Even a 401k is a joke anymore. Who can afford to put very much in one when everything costs so much??
We did it joe!
It's currency.....not money....big difference . One of the biggest hustles ever in human history along with religion and politics
Damn I wanted to borrow from my house I got 200k value in it being a trucker in these days are very hard right now but keeping the foot down these credit card debt isn’t fun at all I think the government needs cap the interest rate like at 14% but we got a government so stupid that can’t stop fighting each other and giving the middle finger to the American people.
the credit cards will charge high interest rates as high as they want because people are dumb enough to use them. free capitalism market is the way to go.
Fellow trucker it’s hard out here. Stay safe!
Around 3:00 mark re transportation.. during COVID we saw all time high record freight rates. Everyone and their mother bought a truck and jumped into the trucking industry. Now we've had a little bit of slow down in freight, with way way more trucks than ever before, there's less freight to go around.
I took out my 401k a few years ago. Paid everything off but the house. I did it because I’m 100% sure it won’t be there in 20 years. I have a gov pension that’s pretty good. If that goes the 401k will be gone as well. Economic 101 at work all the 401k will be gone sooner then you think💯
Lol keep in the market and watch it go when the US Petroleum dollar goes bye bye! Very simple to understand
Your that certain of the future?? How do you know that if the 401k system disappear that also might mean your ownership of your house doesn’t?? Don’t you think in a system where our pension/401k disappears, we would have bigger issues than just that? That would a signal of even worse things and that includes anything you own may be taken from you by force.
I'm not surprised at all, especially considering how high interest rates are. When the rates were low, many homeowners were used to refinancing their mortgage & pulling out cash from their equity on a regular basis. I work with a guy who just turned 67, he bought his house in Vegas back in 97 for $170k. I assumed the house was paid off or nearly paid off. When he told me he owes over $300k on his house, I asked how tf is that possible? His exact response was that he pulls out money from his equity every 4 or 5 years like everyone else. I was blown away.
We just drained out 401K because we couldn't make ends meet :(
Aw man I'm sorry.
Hope you can find a way to live sustainably and we can together make a viable country again...
I can't hardly afford rent so I feel it 😔❤️
There is no cheat sheet for life! It’s called hard work!!! What happens when you are In another tough spot?? Sounds like you would be homeless
that's crazy, i hope you used it to permanently retire debt so you have no more payments. hopefully you OWN your home, and have no debt, otherwise you may have put yourself in a world of hurt.
@@SeanNMathis85Hard work is stupid. If you sacrifice yourself to make ends meet, you will miss things.
You need to be smart, man. From the way you allocate money to the way you invest.
Working hard is stupid.
@@drillingig2368 So a smart lazy person is going to be successful?? You couldn’t be more wrong
Many people are withdrawing to stay afloat:
Paying rent, mortgage, car payment, kids, medical expenses, etc… Americans are getting desperate.
Vinny says it’s stupid to withdraw your 401k. Easy to say as a millionaire.
Yes but it's also easy to say as a responsible person
@@tracym8952Yeah But Unfortunately Sometimes Life Doesn't Care How Responsible You Are.. 🥴😞🙃
@@MichaelErnest666 that is also true. Life is a dick kicker
@@tracym8952 I Love You 💗
@@tracym8952A responsible person can also look at the market and realize it's ROI has been bad for many years now. Compound interest only works if the stocks have dividends or if stock values grow with inflation. Unfortunately too many stocks are not growing with inflation.
I’m almost 61 & disabled. What I do have is not anything I can afford to lose anything. Where I can I’m going cash until we have something looking a little better.
Lets Go Brandon!
Theyre surging because they paid far too much for a rapidly depreciating asset... in this case a house. Now prices are plummeting.
I'm not ashamed that I withdrew from my 401k. I paid off my student loans that was 6% interest. The interest turned back on in September & I refuse to pay 6% to the Dept of Education another dime! Worth it to me to be 100% debt freeeeee! 🎓
There are a lot of people in this country, that are genuinely scared.
Well if they voted for Democrats then they don't deserve any sympathy.
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Thank you for sharing, Your coach was simple to discover online. I unwillingly copied and pasted his complete name into my browser, and now his page is at the top! And I wrote to him. He appears knowledgeable based on his online resume,incredibly great and helpful, far above expectations
Shiity SCAMBOT
CONGRATULATIONS ON 5 million
Retirement. What a joke.
When you're 401K is dropping faster than you can put $ in, people figure why bother. Not to mention, after seeing what the federal government has done with social security which probably won't be there when I retire in 12 years, many people I know believe that Democrats are eyeballing all those 401K dollars that are just sitting there.