Financial advisors and reality

With the pandemic still going on, the Federal government has eased regulations regarding taking money out of your retirement funds to the tune of USD 100k instead of the maximum $50k as before and people have been increasingly taking money out of it for their current expenses. This has alarmed or you can say pissed off many financial advisors who think it is not right and the people cashing out or taking money out will be losing big time in the future. I had never paid any heed to any financial advisors who have such a big disconnect with reality of the common American citizens that it really pisses me off. You see I have written about this many years ago. Since I have been laid off four times, I have cashed out my retirement plans completely two times in the process incurring penalty and tax liability. It is after I had nowhere to turn too and had exhausted all avenues of getting funds when I was out of a job.

These financial advisors who may be sincere in their advises keep on harping about not to take out funds out of your own retirement funds and to tap some other revenue stream like cutting out your expenses, or taking some kind of other loans.

The thing is that people don’t want to tap their retirement funds and whoever is doing it (including myself) but when you are down on your luck and have nowhere to turn too, have reduced your expenses to the barest minimum, where are you going to turn too. It is your own money and like retirement, it is saved for a rainy day. And what can be more of a rainy day then when you unemployed, deeply in debt and can’t pay your bills and nobody is offering your any aid to support your in these dire times, you will have no where to go but to tap your retirement. I am sure the people who have died due to this virus followed the advise of the financial advisers by saving for retirement but if you are going to die early then all this retirement fund is useless. If you can guarantee one person that you would live to tap your retirement fund, maybe you can deter that person not to go after it. It is easier to keep on making noise about not to tap your retirement fund as you will lose out on future income but for many the future is now. Make your own choice as nobody can know your situation unless they are in your shoes and walk the path you are taking now.