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"The share of retirement savers who withdrew money from a 401(k) plan to cover a financial hardship hit a record high in October, according to data from Vanguard Group."
Most of my retirement savings is in an IRA. I moved that over to a crypto IRA a couple of years ago and am doing better than if I'd left it in the stock market. I also have a small 401k but it's worth 2/3 of what I've paid into it, so I can't blame people for taking the money while it's still there to take.
It's all going to hell, folks. Been trying to warn you for years that it's happening. Get some chickens.
I call it like I see with my own eyes.
Every person I know who withdrew, and it’s about 6, age ranges 39-50’s. Have all plundered their 401’s. Their “hardships were BS”. They just wanted the money now. Some to put money down on homes, pay debt. Etc.
Typical human behavior. They will reap their fool decisions later in life when they realize SS isn’t enough.
From the linked article. The number of folks raiding their 401ks is not exactly high. Just another negative headline grabber to make people think the world is going down the crapper.
Quote:
KEY POINTS
About 0.5% of workers participating in a 401(k) plan took a “hardship distribution” in October, according to Vanguard Group, which tracks 5 million savers.
While a relatively small percentage, it’s the largest share on record dating to 2004, Vanguard said.
Inflation has led prices for food, rent and a host of other consumer items to rise at a historically fast pace. But withdrawing retirement savings should be among the measures of last resort for cash-strapped households, financial advisors said.
Where I work far more than .5% took 401K loans, and it was mostly to buy some new toy. People tend to spend up to their income and live paycheck to paycheck, relying on that occasional overtime to stay afloat. To each their own.
I observe them and I have little sympathy when they complain about their finances. Like the above poster said, they are all 30-55 years old. They sometimes they think have this obligation to pay for their kids college debts, something I was taught was never a requirement of a parent by my frugal parents. Their parenting put my net worth among the top 10%, so I'm not complaining. When you coddle people too much, as modern society does....
Good points by the below poster. I never got bought a brand new car either, and my most expensive Christmas presents tended to be $200-250 tops, unless my father and I mutually decided to get each other precious metals. Sorry about the post editing.
Where I work everyone is making $30/hour and has no excuse for their 401K withdraws other than they enjoy their toys. People spend up to their income level to live paycheck to paycheck often as a choice. I observe them and I have little sympathy when they complain about their finances. Like the above poster said, they are all 30-55 years old. They sometimes they think have this obligation to pay for their kids college debts, something I was taught was never a requirement of a parent by my frugal parents. Their parenting put my net worth among the top 10%, so I'm not complaining. When you coddle people too much, as modern society does....
I couldn’t agree more about the paying for college thing. I paid my own way through college.
These same people think you have to buy your child their first car, first home, etc.
I don’t get it.
One person told me “your not buying your kid a car?” I replied with a question. Your parents bought you a car? “No”. My reply, no one bought me a car. No one bought me a house. And I came from a well off family. I was taught, “you want? You go earn it”
Rant over.
Last edited by homestead123; 12-08-2022 at 08:39 AM..
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