Record layoff in 2019, I Predict a Recession In 2019, and you don't have to pay me for the analysis
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If you get your financial advice off boards like this then you are an id--t. I can see why including the clueless clown who started this string
"Even with an 80% employer match on the first 6% of your salary counts for nothing ..."
That is definitely not true. Lets assume that this apocalypse scenario is occurring.
Then, in that case, there can be a matching approach taken. Put in 6% salary after-tax, and let the company match, and in 2 years time, or when it vests, take withdrawals. Only the match and income is subject to the 10% penalty and income tax. With an 80% match, one would be way ahead of the game.
In other words, whether one is going long term, or short term, I'm not seeing a scenario where that 401K can't work for each and every employee.
I've gone long term with these things, but I'm unaware of why, given an immediate 75% match (which it was in my day) why even a short term strategy wouldn't bear fruit.
@1dcu - Anyone under age 50 who puts money in their 401k is a fool. They are designed to pillage the middle class of their retirement money through globalist engineered financial crashes and hyper inflation. Even with an 80% employer match on the first 6% of your salary counts for nothing when by the year 2050 the U.S. dollar will LITERALLY be worth 1/10 of what it is now.
The global elite are about to ramp up the squeeze on this country... BIG TIME
Bankruptcy Priorities at AT&T- bye bye 401K
The U.S. bankruptcy code allows businesses to either reorganize debts or shut down in an orderly fashion so creditors can be paid. The bankruptcy system establishes the priorities of creditors
Unpaid workers' salaries have high priority in claims against a firm -- behind only the IRS, which wants any outstanding taxes, and the attorneys and accountants who help with the bankruptcy filing. Workers are ahead of any creditors, secured or unsecured, meaning the likelihood they will be paid is pretty high.
"Congress viewed employees as having a special right to payment (because) their labor helped create assets from which other creditors will be able to realize value and because their wages are typically their sole source of income," Avery said.
Surprisingly, 401k contributions deducted from an employee's paycheck but not deposited into the account are not priority claims. Employees must get in line with other creditors for the return of this money. David Wray, president of the Profit Sharing/401k Council of America, said his organization is urging Congress to recharacterize this money as unpaid salary, since it came out of workers' paychecks.
ditto
My troll sensor has gone off with the initial post.
Moderate recession is imminent - not quite the 2008 debacle but will be a financial problem for anyone who recently bought their first home, has 5 more years on their truck loan, has young kids, is a single earner, carries a lot of credit card or student loan debt - if you get the axe, better hope Mom kept your room open and it's not on AirBnB.
For the Olds - think about moving your 401(k) into a fixed rate Money Market account to preserve cash, get the hell out of REITS and Tech stocks. A lousy 2.5% return beats a 30% drop in net worth any day - I didn't do this in '08 and lost a ton of hard-earned savings.
I've been through at least 5 recessions and 3 lay-offs in the Telecom biz and my advise is to pay off everything you can, minimize debt as all costs, don't go big on long term purchases and stash as much OT cash as your body can withstand.
Be prepared for 6 to 10 months of being unemployed as Telecom skills count for nothing in the rest of the 99.99% world. You will be starting over and the pay won't be pretty for a while.
Cover yourself now.
Whatever you do - don't s--- out your 401(k) money for beer and food - that is your only stash for old age and if you burn it now - you will never make it up later.
Winter is Coming.
Haha !
No argument here, the looming economic collapse has begun. Save cash, if you don't need it, don't buy it....layoffs are certain with the downward spiral of the T stock.
I think we’re headed for a complete economic collapse. Current government spending is unsustainable. It only takes people getting spooked just a little bit for it to start.
very possible, yield curve inversions may not be followed by recessions as a matter of universal mathematical principle, they should definitely raise warning flags about future output growth.