The questions that arise as to planning one's finances are rather similar under all those unfortunate scenarios, and the OP's proposed solution is ill-advised under any of them.
- Vote on answer
- posted
13 years ago
Withdraw early from IRA for disaster preparedness
Loading thread data ...
- Vote on answer
- posted
13 years ago
What point would there be in having funds in an IRA after the collapse of the economy that the OP's spouse is expecting? (assuming that her prediction comes true). You would probably not be able to get your hands on those funds, and it you were able, the money would be worthless. Money only has value if you can use it to obtain goods and services.
It would be similar to the collapse of the currency issued by the confederacy during the civil war, after the conclusion of the war. While it has some numismatic value today, it still cannot be exchanged at a confederate bank, or spent at a Wal-Mart.
When I was a youngster in the 1950s you could purchase a large bundle of those bills for just a few US dollars.
- Vote on answer
- posted
13 years ago
All true, but I do not expect a total collapse of the economy. It could happen, but I suppose it is a matter of probabilities. My guess is that the likelihood of needing a retirement fund in the future is considerably greater than the likelihood of a total collapse of the economy. So, personally, I would stick with the retirement fund and hope for the best as far as the economy (or nuclear war, or natural disaster) is concerned.
- Vote on answer
- posted
13 years ago
Not true. For a moment, I am prepared to suspend my disbelief of the collapse the OP describes as being close to impossible. Wave the magic wand. Hyperinflation has wiped out the value of the dollar. But I have very few dollars. Real Estate? Well, the shares of MacDonalds I own still have their intrinsic value in whatever currency you measure them. The fact that they trade in dollars is pretty meaningless. I can make the case that most companies would be viable after such a collapse, their debt wiped out, and their assets still standing.
- Vote on answer
- posted
13 years ago
Agreed. After the Great Depression in the USA, the factories were still standing. Despite hyperinflation in Germany after World War I, the factories were still there and the iron and coal were still available, making World War II possible by a restored Germany in another decade or so. It might take a long time to recover from a collapse in the USA in the future, but I would bet people with retirement plans will be better off than people with no retirement plans and lots of food and livestock.