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I am single, age 51, make 30k per year, have zero in savings, but have 20k in my 401k. My debt is a house payment on a 30 yr. mortgage that I owe 75k, and that I will probably refinance in 3 yrs to a fixed rate. My other debt is a car payment of 266.00 per month. I live paycheck to paycheck.
Ever since the bank bail outs, falling stock markets, stimulus spending sprees, and ponzi schemes, I have become angry and distrustful of the government and am having a big problem justifying the ethics in keeping my money in my 401k. The reason is because there are companies in my portfolio that I do not want one penny of my money going to, as they have already been given my money via the bank bail outs and tarp money, etc. I would rather pay the penalty of early withdrawl on the 401k, pay off my car, and bank the rest in a CD at the bank I work for. I would be happy knowing where my money is, and have money left at the end of each month to save and pay towards the principal balance of my house. What do you think of my plan for financial “peace of mind” ?