So the way I look at it is like this:
There is no real loss if you re-invest. Your 401(k) is getting reallocated as I type this by the fund managers. Using Aldeer logic... you are currently locking in your "losses". Surprise. The Joke is on you.
You can pay tax now instead of later but at this point avoiding the penalty gets it out of Gubbernment control and into your own hands. You pay taxes on it either way. Yearly or at the end when you take it out, etc. You say your tax bracket will be lower when you retire. You should have been a Democrat because you are good at throwing around blanket statements and apparently have a crystal ball. Your crystal ball is one of those 8 balls you can shake and the answer floats to the top. You don't know anything. If you were as smart as you think you are... you would have seen this pandemic coming and shorted the market and walked away with millions.
I can make more money.... with my own money.... in my own wallet. Not everyone can do that.... but I have never seemed to have that problem.
My losses have been minimal. I moved a lot of money around prior to this because I know people that live across the globe from doing international business for years. I was not bold enough to short the market but I did put a lot of money on the sidelines.
I think more pain is going to be delivered by our reaction to this pandemic. I think the damage this has done and will do to your economy is just getting started.
