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[FarmerChick]

There's a difference between burning your money in the fear it will be useless and investing in things that will make your future better. I find it very odd that you are so against SS planning, yet you stay on this forum.

well take OP
burned thru 40-60% of taxes, penalities and fees, and future tax all the while wasting what was saved.....to what, pay off a few small loans of maybe $10K at an interest of 10% maybe.

where is the BIG loss?

why give so much of your money earned and saved to invest in a few things you probably could easily afford now with planning and time?



I am SS but to be financially stupid ain't in me LOL
edited to say especially when nothing has happened

 

[OrganicKale]

I thought being SS was about saving money, not spending it. I am confused. Why wouldn't you continue to save it rather than looking around for something to spend it on ?

Honestly, I don't think wanting to be more self sufficient necessarily means that you are doing it because you expect a collapse of civilization. Some people just enjoy saving money on things so they can spend it on other things- or save it for retirement.

 

[old fashioned]

 

[rhoda_bruce]

3 years ago, we cashed in about 3,000 in our personal savings. Maybe there are those who feel we burned our money. Well it was burned on treated lumber for a coop, retaining wall blocks for a raised bed, various hand use and power tools and a truckload of topsoil....perhaps a few other knick knacks.
Results: The chickens cancel out the 2,000ish we invested in them, every year between egg sales, chick sales, eggs and meat for the house and fertilizer. The garden is a controlable size and contributes probably 20 bucks a week in produce savings for my family (thats not a fortune, but think about how much money I would have to have invested to get 80 dollars a month from a bank).
Even if TSdoesn'tHTF, I'm fine. I still have done better with my money than my investor was doing. There is food in my house and I have more of my money to use on other things......that none of us may or maynot have soon. I don't pretend to be an expert, but things look pretty bad from where I stand looking.

 

[abifae]

I thought being SS was about saving money, not spending it. I am confused. Why wouldn't you continue to save it rather than looking around for something to spend it on ?

Honestly, I don't think wanting to be more self sufficient necessarily means that you are doing it because you expect a collapse of civilization. Some people just enjoy saving money on things so they can spend it on other things- or save it for retirement.

It depends on the situation. You can save money by investing in something you need (like a generator or new canning supplies or a goat), or you can save money by tucking the money away to spend later. And if you are going to lose a lot of that money (through tax laws or inflation) and want it in tangible goods, that different than if you think a financial investment will keep your money safe.

I don't think society will collapse. We've had a lot of depressions since America started and countless before then, worldwide. But that doesn't mean things won't get tough.

 

[FarmerChick]

3 years ago, we cashed in about 3,000 in our personal savings. Maybe there are those who feel we burned our money. Well it was burned on treated lumber for a coop, retaining wall blocks for a raised bed, various hand use and power tools and a truckload of topsoil....perhaps a few other knick knacks.
Results: The chickens cancel out the 2,000ish we invested in them, every year between egg sales, chick sales, eggs and meat for the house and fertilizer. The garden is a controlable size and contributes probably 20 bucks a week in produce savings for my family (thats not a fortune, but think about how much money I would have to have invested to get 80 dollars a month from a bank).
Even if TSdoesn'tHTF, I'm fine. I still have done better with my money than my investor was doing. There is food in my house and I have more of my money to use on other things......that none of us may or maynot have soon. I don't pretend to be an expert, but things look pretty bad from where I stand looking.

diff is you got to spend 3K on your projects.
sure I would do that if I wanted.

diff is you didn't spend tax/penality etc and get only $1,400 to spend from that 3K

 

[OrganicKale]

Ah yes. And when the going gets tough, the tough get going.

 

[~gd]

It sounds like you already have a great plan. I would just sit on anything that's leftover. Keep it as an emergency account.

And if inflation goes crazy, cash it in as gold

i MAY be wrong but I think you can now carry some gold in an Indivual Retirement Account [IRA] and I would be sure to transfer that 401K DIRECTLY into a IRA! If you have it for even 1 day you will be taxed ON THE FULL AMOUNT and it could put you in a higher bracket and raise your taxes on any other money you earn during the year. On top of that there is a stiff surcharge you will be hit with to. If you NEED some of the money, roll it over first and then take out part you need and get screwed Only on what you took out rather than the FULL Amount. IMO you need to talk to an IRA supplier (bank, stock broker etc.) before touching that money. Ask about ROTH IRAs they are abetter deal if you can get one.

 

[Avalon1984]

I am in the same boat. Looks like I will be losing my job at the end of this week. I have seen it coming for a while so I have been paying off debt as much as my measily paycheck allowed, tried to save money in the meantime and cut spending. I am not where I was hoping I'd be but at least I am somewhat prepared. I have enough money in the bank to last me 12-18months if necessary and I am happy I did that. I personally would use the money to purchase material goods that you need at the farm or your house and leave some in the bank for emergencies. Whether money will become worthless or not is up for debate. I took all my savings out of the market back in 2007 and everybody called me crazy. All I left in there was a 5yr CD I had bought for 6%. After that the market crashed and I was ok- the people laughing at me became quiet. I finally sold my CD with quite a profit when the regular market started to pay only 1% for the same thing so I was fine there as well. Yeah I got hit with taxes but I didn't lose a huge chunk of my 401k like my husband just did. It is terrible to see his life savings trickle away. As soon as the market comes up a bit again he'll do the same.

 

[abifae]

Nice Avalon! I save every penny I can, and can only manage 2-3 months in savings. But I think my piddly paycheck is a bit TOO small. But I haven't been laid off yet, so here's hoping I can keep scrounging!