Getting ready to roll over retirement $, maybe its better to take money out and pay off debt?

Question

I'm 25, and have a couple thousand dollars in a retirement fund from an old job... was looking to roll it over into a personal account...

The market isn't looking so great and I fully expect it to get worse before it gets better. Would I be protecting myself better if I took that money out and used it to pay off my car, or a couple of credit cards? Maybe that would set me up better for hard times... that are probably coming.

I know I'll lose a % of money... but just curious what others think... thanks!

Answer 1

I used to work in the 'securities' business as in SEC registered and to me the best product out there continues to be ANNUITIES. Not money market funds, not 401k's, dismiss any c**p you hear about 801s thats a scam, and then there's the stock market... Go at your own risk on that last one. There's equity funded products (stock market) and there's debt funded products (money market, mutuals etc). Treasury Bonds are doing good and gold is always a good bet. But for my money i would strongly recommend an annuity. They are tax deferred, the historical return has been 8% and better and once you get it to a certain level you get quarterly premiums (dividends). Dont take the money out - then its pay the tax man time. Allow it roll over forever, even after you're dead.  Leave it to your children or sibling(s).There are a few 6% CD's out there, again they are a gamble.

Answer 2

If all you got is a couple of thousand of dollars you loose about 3, 4 hundred taking it out . If it was me I'd take it out and buy non-perishable food stuffs . Along with a gun and ammo . Hard times are around the coroner and with it civil unrest .