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[bob ford <bobford79 AT yahoo.com>]

Rob;  Do not make a financial major financial decision based on what you read 
on this or any other list.  Talk to a fee based, well recommended local 
financial advisor, first.  My only suggestion would be to remember than you 
will pay a lot of additional  taxes and penalties by cashing out early from 
your 401K.   You could end up losing up to Half.   Plus, if you are invested 
in any of the markets through your plan, right now would be a pretty bad time 
to sell.
 
None of us, or no one else, for that matter, can tell you how far the market 
will drop or for how long.  And , precious metals can be tricky.  People buy 
gold and silver for protection against inflation.  But, defation can make 
them lose value also.  In stagflation, you have deflation of core asset value 
at the same time of  price inflation.  Gold has dropped about 25% since the 
first of the year, and silver has dropped by over 40 % since March.  It never 
hurts to have some physical presence of precious metals in case of a worse 
case scenario, but they make for notoriously bad investment vehicles.
 
Personally, I would not do anything drastic; But do nothing based on what you 
read from people like me.  I might be well meaning, but I could also be an 18 
year , pot smoking, metal head, who likes chatting with older people.  You 
don't really know us well enough to trust with your savings .  ,  Besides, it 
sounds like you've been pretty smart, on your own, so far. ....bobford





----- Original Message ----
From: Robert Walton <waltonrp AT gmail.com>
To: homestead AT lists.ibiblio.org
Sent: Monday, September 15, 2008 5:42:48 PM
Subject: Re: [Homestead] Take cash from bank / Roubini

I have a question. Most of you have a better understanding of money than me.

I don't have a lot of savings. Most everything went into this
homestead. I work off the place to pay for what I need and to save for
when I need it (when I can't work anymore). I have a small 401k that I
could not roll over to the state job I have. I kept it with the
previous employers fund and it's invested pretty conservatively.

What happens to that in this mess?

I've thought about cashing it in, paying the penalty and putting it in
something other than cash. Gold?

I'd take a big hit to cash it in, but if this turns out to be really
bad, I assume it could be lost.

Rob - Va
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