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Borrowing (Looting) From My 401k and Defaulting on Myself

Recently my wife and I were considering dipping into our 401k, but as you know someone else beat us to it. That someone else doesn’t have a face or a name really – it’s called “the market”. Being that the case, my wife and have decided that we think “the market” is a thief. I mean we should lock “the market” up and throw away the key.

We started a renovation project on our kitchen and backyard just before “the market” did it’s now famous nose dive. We spent about $30,000 to much and we were considering using some of our 401k monies to clean up this line of credit debt. Hmmm….not such a good idea now is it?

According to this L.A. Times article I read this morning there is talk of changing the 401k system all together. There has always been talk of revamping the 401k system, but until now the debate was sort of mute. No that everyone is losing the last decades gains all in a matter of a few months, people in general (and people on Capital Hill) are starting to listen to those pesky naysayers.

[ad#embed]I wasn’t sure if my wife and I could even borrow money from ourselves by pilfering our 401k nest egg, but we were getting ready to look into it. God forbid we have to stop going to Palm Desert every year for two weeks, and Vegas for another. God forbid we have to give up the Mercedes diesel, and the RV. God forbid I can only play golf in Palm Springs 20 rounds a years instead of 100 rounds a year.

As it turns out, my idea of robbing my own retirement accounts to maintain my decadent lifestyle has been germinating in Barack Obama’s head as well. Here is a chunk of the article I just quoted above;

“Barack Obama has called for modest changes to the 401(k) system, such as temporarily allowing penalty free withdrawals for people facing economic trouble and suspending requirements that seniors older than 70 1/2 make annual withdrawals from their accounts.”

Hurray! Lets get out our gum boots and start a-looting. Think I’ll get a new golf cart, and replace those tired Ping clubs I have for a brand new set of Nike clubs. Think we need to go down to Mexico for a couple months this winter – god knows I don’t get enough sunshine living in California. I mean god get me out of this dump we call Montecito. You guessed it – I’m a rich brat who comes from rich brats. My 401k was setup by my father who owns a Yacht building company. (well he owns 67% of it now). Yep, think I want to loot the holy hell out of that 401k. God knows I’m heading for another divorce California style. Just kidding folks – I just love going off on a tangent like that.

I’m not a rich brat and I live in a modest dwelling in Bakersfield, and I blog because I’m semi-retired. Well back to the subject at hand here. I will not be looting my 401k, the markets will rebound and in 30 years I’ll have some pretty good cash for retirement. This is not the great depression volume 2. This may be a recession, but that is about it. We’ve swung out of these before and we’ll swing out of this one too.

One thing for sure – I will never retire now. I think Californians know that all to well now. Hell, I think all Americans know that. That dream of retirement looks as real as Leave It Beaver and Ozzy and Harriet now. Man people dressed better back in those days.