Economy

According to White house reps, the $787 billion stimulus package has created or saved around 640,000 as of October 30, 2009. While these numbers sound promising, they don't seem to reflect the continuous rise in unemployment that we see with our eyes every day. Of course, this doesn't mean what the White House says isn't true. Maybe it just needs a little bit more analysis.

What the White House Says

According to the White House, of the 640,329 jobs that have been created or saved since the start of the stimulus package, the largest numbers have gone to the following:

• 325,000 went to teachers and school staff
• 80,000 went to construction

Also, the following states have benefited the most:

• 110,000 went to the State of California
• New York State received 40,000
• 34,000 were allocated to Washington State

A review of the White House data from the Christian Science Monitor revealed that $159 billion in stimulus spending is providing around 2,100 jobs for every one million people in the country. However, recent reports show that some estimates may have been overstated.

The Reality of Unemployment

While job creation looks promising according to the numbers from the White House, no one can dispute that fact that unemployment is still on the rise. Many more people have lost jobs than have become employed. In fact, 10 million workers have been laid off since the recession and 15 million are out of work, according to government stats. So hearing of job creation doesn't necessarily ease the nerves of the millions competing for the same jobs.

If you're actively looking for work, finding a job can be equated to finding a needing in a haystack. However, the situation isn't hopeless. There are said to be more jobs being created in health care, construction, the school system and hi-tech industries to name a few.

Have you or someone you know received a stimulus-created job?

Suze Orman is probably shooting out expletives at every turn with recent news that nearly half of unemployed Americans are withdrawing funds from their 401(k) plans. Experts spend a lot of time advising workers not to touch the funds because they take away from much needed retirement at the end of a career. But workers are doing it anyway, like it or not.

Why Are They Doing It?

A recent study released by Hewitt Associates, a global human resources consulting firm, reported that 46 percent of employees who left their jobs last year took a cash distribution from their 401(k) plan. This number is based on 170,000 workers. While nearly this many workers have been withdrawing funds since 2005, it's even more common now due to the troubled economy. Many workers would much rather take out funds to pay their mortgage or car payment (and put food on the table) than to lose their precious treasures. Who can blame them?

What Are the Drawbacks

There are a couple of drawbacks to withdrawing funds or borrowing against your 401(k) plan prior to retirement, including:

• Reduced savings: If you withdraw some of your 401(k) now, you will have less growing in your plan for when you retire.
• Inability to retire: If you withdraw too many saved funds, you may not be able to retire when you'd hoped.

Here Are Some Alternatives

There are definitely ways avoid touching your 401k while unemployed, including rolling over to a Traditional or Roth IRA. If you want to avoid withdrawing your funds, there are government plans that you can consider, in addition to accepting unemployment benefits, to help you stay afloat.

However, if worse comes to worst, you may have to withdraw now and hopefully rebuild it along with taking on additional investment options at a later date.

Have you ever felt pressured to withdraw cash from your 401(k) plan?

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