Do you think it is best to stop 401k withdrawal with the layoff uncertainty?
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@av that's exactly the wrong approach. And I know firsthand because I've done it and as a result lost tremendous opportunity for growth that comes from buying low.
FWIW if you are over 55 and lose your job you can withdrawal from your 401 without a penalty.
Lots of people saying don't stop. However it's really dependent on your situation. In a down market I stop contributions because the 401 can hemorrhage thousands of dollars in a month. Granted long term it comes back but to me, that's just throwing money away. If I were at risk of being laid off or fired, I'd probably put the money in the bank rather than risk short term losses. And the match is 6% not 10.
Always contribute to your 401k. Minimum contribution should be 10% (ratchet up 1% annually). 10% usually seals in the company match. Retirement money is long term and should not be used as emergency funds. There are tax consequences to reinforce this difference. Emergency funds are short term funds (which may stay in short term vehicles for a long time). To establish an emergency fund, have a set amount deducted from your paycheck to a savings account each paycheck. As the account grows, begin establishing a CD ladder. Minimal growth with the CDs, but the point is to have liquidity when needed.
I think you are referring to stopping contributions to your retirement plan, not withdrawing from your retirement plan.
Unless you are absolutely desperate for cash and need to pay the price for it keep contributing. The extra cash you receive in your paycheck by stopping contributions will result in higher taxes (since the retirement contributions are tax deferred) and lost growth opportunity.
In addition, your contributions are your own regardless of your employment status with Citi.
Also note that taking a loan against your 401k in this environment can be risky - if you lose your job (even if you quit!) you will need to pay back the loan in short order.
Just sock that money away as much as you can afford and know your future self will thank you.
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This is answer. You don’t withdraw from 401k unless it’s strategic. Strategic because if you are under 59 and half, normally you have to
pay penalty, here you withdraw but invest in brokerage. Folks withdraw but either spend or don’t invest. Lot of folks are not, so don’t.
I am.
No.
This is why it’s important to build an emergency fund (6-12 months based on risk)
Keep collecting the retirement / match while times are good
Stopping is a last resort (I.e. you need help building emergency fund). But that can be accomplished by cutting other expenses
https://www.thelayoff.com/t/1kfdsx4c5
No, Citi is always laying off. Never stop saving and always get your 6% match