If your frame of reference is one year, you need to get a new frame of reference. On an historical basis, a 6% average annual return is reasonable, even a bit conservative, for a decently allocated portfolio.I read the article and hardship does apply to being unemployed and out of options (loans, avoidance of forclosure, etc). Also I thought the assumed ROR of 6% was commical to convince people to contribute to a 401K lol, the last year I was tracking a -7% ROR and without the company matching I would have been throwing money in a burn barrel and that was with stable value investments (I guess when they say stable value they are not talking about gold lol). Also who lives to 75 yrs of age.... not many.
Actually they will only defer the federal student loans, the state loans go to interest only payments which is still over 100$ a month which is alot of money when you have no job and its pissing money out the window and only for so long if you go beyond 6 months you will go into default, like I said had I been laid off in may which was a close call I would still be unemployed right now as I have been looking hard for a new job because who wants to be somewhere where you are hanging by a thread so that means that I would have been unemployed for 7 months at this point with no call backs or interviews let alone job offers as of yet or in the foreseeable future. Plus the 300 lb gorrila in the room would be the mortgage that would go into default almost immediatly since between the mortgage and condo dues its like 1700$ a month. Thats just the way it is, im not sure why there are individuals on this forum that are like vicious wolves, I figured they were only in certian sub forums but they are all over in here.Who wants to take bets that when OP is eating cat food in his 70's, he'll want to know why someone didn't stop him from spending his 401k?
Also, if you become unemployed, you can get your student loans put on deferrment. That means no payments or interest. So they won't go into default.
Thats true, and I could forclose on my condo and declair bankrupcy if it turns out im upside down but the problem with the student loans is my parents are co signers so as soon as it went into default they would be hooked up for the payments and they are poorer than I am. I am still employed now so I am making massive balloon payments to my student loans because saving the money to hang on to my condo for a few extra months at the cost of keeping my parents hooked up is not worth it since if I were to be laid off it would be very long term and the condo would go into forclosure anyways. You are correct I dont want to dip into my existing 401K but I need to pay the state loans off and 200$ a month extra since its questionable if the company is even going to match anymore might be a good idea.I only have federal student loans, so I didn't know about the state loans.
You can stop contributing to the 401k at the next enrollment cycle. Depending on the plan, that could be monthly, quarterly, or yearly. Ask HR when the next time you can disenroll is. You don't need to leave the company to change your enrollment for FUTURE contributions. You just can't get to whatever's in the account NOW. And seriously, you ARE going to need that money when you retire, so try to think of the big picture.
I used to work for a Medicare supplement insurance policy. As part of our training, we learned that the average 65-year-old is expected to live about 15 years more. The general life expectancy may be 70-75, but that includes infant mortality, people who die from cancer or car accidents in their 20s or 30s or 40s, etc. If you make it to retirement age, the odds are on your side that you will make it a fair bit longer. Social security barely supports people now, and it might not even still exist by the time people in their 20s and 30s now, retire. I know you are worried about your credit rating, which is understandable, but money in your 401k is otherwise untouchable by creditors - it is protected from lawsuits and other means of collection, EVEN for student loans. It's a safety net you can maintain even if you end up in bankruptcy.