Hardship withdrawl from 401k to buy my primary homestead?

A 401K is something you have earned. Employers who contribute to them are just paying you for your work in more than one way. Social security is less moral, if you stop and think about it. It wasn't designed to lat forever, and it is funded at the expense of the people working when you stop, or working when you are long gone to your just reward. We are not Mormon, but we know there is a religious obligation to put away against the future in order not to be a burden on the community. Some Mormons store a years' worth of food. Putting away money isn't all that different. Sue

I think you're confusing Social Security with SSDI. Under Social Security, your payments are based on the amount of "quarters" you have worked and paid into the system. SSDI is essentially a federal welfare program.

It was asked, being a christian what do Ithink about taxrds. I tnhink Jesus said, (render under Ceaser what is Caesers and unto God what is Gods

I know some amish here that invest in race horses.........they do invest and have insurance.

All I know is God Helps Those Who Help Themselves. I don't thing god wants you to be destitute in your old age or be a burdon to other hard working tax payers...I see no reason not to save for your wellbeing in your old age. You are using religeon as a silly reason not to save money. saving isn't easy but it should be done.

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It's not that I don't like mankind, I just like nature a whole lot more.

what does being a christian have to do with planning for retirement?

Your employer typically matches your contributions up to a certain point so if you are not investing at least that much, you are throwing money out the window. As for investing, start reading at Mathew 25:15 about the 3 investors and their talents (a form of money). Are you going to be the guy that buried his? As for the future, you might want to brush up on Proverbs 30:25 about the ant that works to put away for the future. If you had the opportunity to save for retirement but didn't, you have no right to pray for help when the time comes. Otherwise, why not just stay home on the couch all day and wait for God to provide. Because he is providing right now with this opportunity!

They have cars and drive them on the road but don't have insurance??????

I'll have to refere back to the OP to answer that . . . .

Investing is a form of gambling? Almost all of it is profit sharing?

mnn2501, pass me the hammer when you're done with it.

Here's some economics/investing 101 for you. First, investing is not gambling. Buying stock could be a form of gambling, if you just randomly picked stocks out of the newspaper, tossed money at them, and then sold right away for the quick profit. But investing means putting money away for the long-term.

Second, when you buy stocks, you are in essence becoming a part-owner of the company. So, yes, I guess you could label that profit sharing. If the company does good, you make a profit. If it doesn't, you take a loss.

So, what's wrong or un-Christian in that? You own part of a business. Can you not make a profit? You make it sound like all investments are just a Ponzi scheme.

I'm 25 years old, work for one of the largest mutual fund companies in the world, and invest for my retirement. When I use to work on the phones, I'd would often speak to elderly shareholders, 55, 65, 75 years old and more, who were taking money out of their retirement to pay for medical expenses. They were thankful that they had put back that money for when they needed it. They were thankful that they planned for the long-term.

Like, I said, I'm 25. Faithful One, I hope that you're close to my age, because I want to be well out of the workforce by the time you hit 65. I don't want to be stuck for your bills because you didn't save.

again i have to ask...what does being a christian have to do with planning for ones retirement? the original op states that, but does not explain that. i consider myself christian ( if you consider roman catholic christian). i believe God provides us with the abilities to help ourselves, and He expects us to use them. so explain this statement to me...

I found the following info at this website:

http://beginnersinvest.about.com/od/...a122104a_3.htm

<snipped the parts of the article before this part - you can read the entire article at the link above>


"...401k Hardship Withdrawal

What if your employer doesn’t offer 401k loans or you are not eligible? It may still be possible for you to access cash if the following four conditions are met (note that the government does not require employers to provide 401k hardship withdrawals, so you must check with your plan administrator):

1. The withdrawal is necessary due to an immediate and severe financial need
2. The withdrawal is necessary to satisfy that need (i.e., you can’t get the money elsewhere)
3. The amount of the loan does not exceed the amount of the need
4. You have already obtained all distributable or non-taxable loans available under your 401k plan

If these conditions are met, the funds can be withdrawn and used for one of the following five purposes:

1. A primary home purchase
2. Higher education tuition, room and board and fees for the next twelve months for you, your spouse, your dependents or children (even if they are no longer dependent upon you)
3. To prevent eviction from your home or foreclosure on your primary residence
4. Severe financial hardship
5. Tax-deductible medical expenses that are not reimbursed for you, your spouse or your dependents

All 401k hardship withdrawals are subject to taxes and the ten-percent penalty. This means that a $10,000 withdrawal can result in not only significantly less cash in your pocket (possibly as little as $6,500 or $7,500), but causes you to forgo forever the tax-deferred growth that could have been generated by those assets. 401k hardship withdrawal proceeds cannot be returned to the account once the disbursement has been made...."


<snipped the rest of the article but the above link will take you there to read the entire thing>

So I need to wait until our employer lays employees off as my Job goes overseas when the auto industry tanks? Then I can withdrawl?

employers only match what you put in to a certain amount. If you have not put any of your pay in it, the employer didn't put any in. So your cash out would be zero!

While that's certainly typical, it's not necessarily true.

Some of the old companies/employees that switched over from pensions to 401K's do make contributions to the 401K for employees regardless of personal investment. Granted, not many do this I am sure, but there are some.

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I cashed out my RRSP's (401k equivilent in Canada) a couple of years back as I could read the writing on the wall as to what was ahead for the US, hence the Canadian economy. To me, being securely debt free now is must more comforting than hoping on a return on investment later on. In case you haven't been catching on to what the bankers (fed, treasury, etc) are involved in, they don't play by the rules (and aren't required to). Good luck to those thinking this is a good time to buy... things are going to get alot worse.

As to the question of what being a believer in Christ's Word has to do with investing, I would have to say the fact that His second coming is not too far off. He gave many clues as to when it would be drawing near and they are quickly coming to fruition. I'm not talking about the false second coming that Satan will impersonate to deceive, if possible, the very elect. Remember, when He does return we will meet Him in the air. His feet do not touch the earth.... just something to keep in mind for when you see 'Jesus' on the Oprah show....

What does being a Christian have to do with not wanting to save for retirement? I guess you are one of those people whose theory is "Just pray for it and Jesus with provide". Does that include welfare and goverment assistance using my dollar? You really need to study up on what you need to properly do to save for retirement an not depend on others to do it for you.