KnowledgeOfSelf17
All Star
No financial advice but the recession won't kick in til the end of next month
1 BTC = $8.2k, it’s up 735% this yr UPDATE 5/19: BTC @ $42k :damn:
- Thread starter JordanWearinThe45
- Start date
I'm completely new to the investing world and admittedly don't know shyt about economics.
I'm just here bamboozled about how everything was a bed of roses a mere year ago with everything hitting highs and people getting rich off $shib and $safemoon and damn near overnight everything just shytting itself .. i never even knew how quick things can just shyt the bed it's been a steep learning curve for me
Breh its all good you just have to remember what comes up must come down and vice versa. Also remember to take some profits during runs or stack money to the side. When everything drops thats when the real money is made cause you getting everything on sale.
A lot of the folks who made money in 2021 bought stocks and crypto for cheap in the great covid stop of 2020. That is the power of buy low sell high.
But I think this recession won't be long like 2008. I think the governments will respond quickly and companies will force them too since the markets will get hit twice in a 3 to 4 year period. Once with covid and with the recession. Also don't expect stimulus checks from the government to the public with this recession.
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Brotha if you just need the money to survive like literally survive or be on the street. Then if cashing out is the only way to survive then that is what you have to do.
But just cashing out to cash out. You shouldn't do that cause one you selling at a loss and two you are going to pay the 10% or 20% penalty and then pay taxes on it.
In a bad economy with the market under performing that is the best time to ape in your 401K to get the most matching you can because you are using your money and your companies money to buy everything at a discount (especially when considering how young you are).
But IMO cashing out is not the way to go with your 401K.
murksiderock
Superstar
I doubt I'll need to cash out to survive, as long as I'm still working I'll still have income. I guess I hear all these horror stories from the past so I don't know what to expect. I was a kid when the dot com bubble burst. This will be my first actual time experiencing a recession...
I'm frustrated watching these small gains, my shyt is flat or negative in my 401k this year, all incremental gains are reverses with each deposit. It's pissing me off...
I'm already maxing out my company match too! I just don't want to be in one of these scenarios I've heard where you lose the entire 401k in a recession, nor lose my money in the banks...
Bruh your financial knowledge is always a pleasure to read, though I'm far less experienced and learned in financial literacy, your wisdom has helped in many ways, as have a few other posters. It's always appreciated, a brother just don't know what to expect in a recession and don't wanna lose it all!
murksiderock
Superstar
I thought it was '23, you think it's starting as soon as next month? Do you keep your money in the bank and investment accounts or would you withdraw, is there a tangible risk of losing all the money you've put up?
KnowledgeOfSelf17
All Star
They lie all the time. They want everyone to hold the bag and die out here.
Credit Unions to move your money into.
Get into a Trad IRA or Roth. You have control of those from leaving your 401k and 403b switching into those but
you have to transfer to get into those, if your job let's you.
murksiderock
Superstar
One of my bank accounts is a credit union, so I'm just asking questions for clarification, because I know nothing...
You're saying pull my money from my public bank and store it at the credit union? Why is the credit union safer than BOA (my main bank)? When would you know the time to do this?
And see if my job allows me to rollover my 401k into 403b or Roth? When would I time this as well, and rolling over my 401k, would my contribution rate remain what I have it set as?
KnowledgeOfSelf17
All Star
I'm just sharing what i've done when I left my job. I did the roll over and invested it into stocks NFA
BOA is folding and wells fargo is too. They are looking to bail out banks again. There is possibilities of them using costumers money for liquidity
which is why you can't cash a check in some banks.
Credit union are local and most are not under ISDA, where they can't do that.
your rate is what you put in.
BOA is folding and wells fargo is too. They are looking to bail out banks again. There is possibilities of them using costumers money for liquidity
which is why you can't cash a check in some banks.
Credit union are local and most are not under ISDA, where they can't do that.
your rate is what you put in.
I hear you but the thing is normally the horror stories are people who invested in individual stocks. Or people who needed money because they just retired and then the economy went to shyt so their 401K dumped.
If you concerned about your money losing value take whatever percentage that you want in your 401K and move it to a bond within your 401k. So lets say you have 100K in 401K but its in the equivalent of the SP 500 and foreign emerging markets. Move 50% (or what % you want) of that to a bond in your 401K (though the growth will be nothing) which will cushion the fall when the market tanks.
See the thing you have vs many other folks is that you are still young and will be working for 30 more years. The way 401K works is you should stay being aggressive in investing until your 50s. Then when in your 50s you just move some of your money in your 401K to bonds to capture profit. Then the last 4 or 5 years before retirement start off loading more money to Bonds to maintain your wealth. But anyone cashing out their 401K in their 20s, 30s, 40s and 50s is normally considered a bad decision.
Also cashing out the 401K just to have the money sit in the bank is getting you crushed from both sides unless you are going to invest the money. This is because you pay the 10% to 20% penalty for being under 59 years old. You pay taxes on the money you cashed out and inflation is eating away at your money because it is in the bank and you are getting .001% to 1% in interest in either a checking or savings account.
So if you are cashing out the money its really imperative that you invest it in something that will give you a return that exceeds the 59 years old penalty, dollar erosion and taxes that you had to pay cashing the money out.
Also @murksiderock normally with 401Ks you can't roll it into a traditional roth or roth IRA until you leave that company or your company goes with another 401K company.
So for example I have job hoped a lot over the years so I was able to roll a a lot of my 401Ks into traditional Roth IRAs and then gradually back door the money to a Roth IRA so I wouldn't have to pay a bunch of taxes at once. On a Roth IRA you have to pay the taxes of that year and on a traditional IRA you pay the taxes once you cash out.
The IRA give you more flexibility than a 401K because you can buying any stock, bond, index fund, ETF that you want. Where as with a 401K or 403B its a set of stuff that you can buy. That is also why you should probably move your money to an IRA (or new company 401K) once you leave a job. Because you are getting no growth with it sitting in the 401K of your previous job (you aren't getting money taking out for the account and are not getting matching from the former employer).
So for example I have job hoped a lot over the years so I was able to roll a a lot of my 401Ks into traditional Roth IRAs and then gradually back door the money to a Roth IRA so I wouldn't have to pay a bunch of taxes at once. On a Roth IRA you have to pay the taxes of that year and on a traditional IRA you pay the taxes once you cash out.
The IRA give you more flexibility than a 401K because you can buying any stock, bond, index fund, ETF that you want. Where as with a 401K or 403B its a set of stuff that you can buy. That is also why you should probably move your money to an IRA (or new company 401K) once you leave a job. Because you are getting no growth with it sitting in the 401K of your previous job (you aren't getting money taking out for the account and are not getting matching from the former employer).
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Virtuous_Brotha
Superstar
Any thoughts on improvements ahead of the elections? A lot of folks on crypto twitter/telegram saying the government will "have to" get it together by November since it will look bad having people vote during a complete shyt show. Interesting if we are bullish again in november on some deja vo shyt i definitely won't be exposed to alts heading into 2023. God willing we can all dump at good prices in the winter 
Any thoughts on improvements ahead of the elections? A lot of folks on crypto twitter/telegram saying the government will "have to" get it together by November since it will look bad having people vote during a complete shyt show. Interesting if we are bullish again in november on some deja vo shyt i definitely won't be exposed to alts heading into 2023. God willing we can all dump at good prices in the winter
There's not much hope with the idiot in office and his absolutely beyond incompetent staff. I'm not going to turn this into a big political debate, but ever since April 2021 when he said inflation is "transitory", it's literally gotten worse every single month.
.Open up the gas/oil here in the U.S. and stop spending $100+/barrel from the Saudi's and others.
Exactly why I'm unbothered, this is an accumulation period that's gonna set the foundation for similar success to those who ate post-that covid crash.
I'm not missing that train this time.