retirement lump sum

[js7713]

I anticipate some drains on finances coming up this year. I have a small retirement account from many years ago. I don't see it making much of a difference in my day to day existence in 6 years, so I decided to check out a cash payout of this account. In my December statement it was about $7200. When I called to check the balance yesterday it had lost $800. I understand that I will lose/pay income tax on this money if I take a lumpsum payment of it. When looking at the 10% I've lost in the last couple of months, I'm trying to decide if I should rescue the rest of my money now if this account is going to keep losing money this year or wait until summer thinking that maybe some of the loss will return. Is there anybody out there who has an opinion on this issue. I'm 60, so I'm not worried about the 10% penalty, but don't want to give away money to market fluctuations that could have a grander purpose!

[Stocktrading101]

Originally Posted by js7713

I anticipate some drains on finances coming up this year. I have a small retirement account from many years ago. I don't see it making much of a difference in my day to day existence in 6 years, so I decided to check out a cash payout of this account. In my December statement it was about $7200. When I called to check the balance yesterday it had lost $800. I understand that I will lose/pay income tax on this money if I take a lumpsum payment of it. When looking at the 10% I've lost in the last couple of months, I'm trying to decide if I should rescue the rest of my money now if this account is going to keep losing money this year or wait until summer thinking that maybe some of the loss will return. Is there anybody out there who has an opinion on this issue. I'm 60, so I'm not worried about the 10% penalty, but don't want to give away money to market fluctuations that could have a grander purpose!

Hmmm.... Well, the big question is whether or not the stock market a whole is going to go up or down over the next few months right? Because, if the market goes up then ya you will recoop some of those losses, but if we tumble further your losses will only grow.

No one knows what the market as a whole is going to do, but some options you could consider:

1. Removing half the money now, half once summer comes around.
2. All now.
3. None now, wait until summer and take your chances.

That is tricky because the US economy is on the verge of recession and the probability of the market "taking off" is pretty slim. Playing the odds the safest bet would be IMO to walk! That is just me though.

[js7713]

thanks 101.....I'm thinking by walk, you mean take the money and run...now. That's what I was thinking. It's sort of annoying, though, to have lost over 10% that I tried not to loose last year in early withdrawal penalties.....oh, well.....I guess you are what you eat....thanks