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You don't need to Cash it out and pay the 20% penalty for early withdrawal. I would suggest you borrow from your 401K, that way you will be paying yourself back in the monthly installments. No tax penalty on borrowed money. Last time I looked Interest is about 3 to 4 % so you will not loose all of the interest on your money.
No Tax penalty, payment goes back to your 401k, not to the bank and still gain interest on your 401K ...
You don't need to Cash it out and pay the 20% penalty for early withdrawal. I would suggest you borrow from your 401K, that way you will be paying yourself back in the monthly installments. No tax penalty on borrowed money. Last time I looked Interest is about 3 to 4 % so you will not loose all of the interest on your money.
No Tax penalty, payment goes back to your 401k, not to the bank and still gain interest on your 401K ...
Yeah, same people who “cash out” their 401k plans would also cash out the equity in their homes
That money would have to be paid back, otherwise the house is at risk.
Retirement fund loans, why not just get a car loan, if borrowing?
Yeah, same people who “cash out” their 401k plans would also cash out the equity in their homes
That money would have to be paid back, otherwise the house is at risk.
Retirement fund loans, why not just get a car loan, if borrowing?
Because you’re paying yourself back the interest, not a bank. And taking out equity in your home also isn’t always bad or a risk either.
Haven’t you ever seen bumper stickers that say “I’m spending/driving my grandchildren’s inheritance”? They are kinda stupid but most bumper stickers are, but the humor is similar.
You don't need to Cash it out and pay the 20% penalty for early withdrawal. I would suggest you borrow from your 401K, that way you will be paying yourself back in the monthly installments. No tax penalty on borrowed money. Last time I looked Interest is about 3 to 4 % so you will not loose all of the interest on your money.
No Tax penalty, payment goes back to your 401k, not to the bank and still gain interest on your 401K ...
Actually early withdrawal is a 10% penalty, not 20%.
Hard to comment on this if we don’t know this person’s financial position , age , tax implications etc over 60 no tax penalty approaching 72 you have R MDs or decide you have plenty of money and at a place in life you want to spend and enjoy then of coarse some people will use pretzel logic when they really want something just saying
You're probably right on this. But I still wouldn't.
Everyone has different situations, different priorities, etc. When it comes to finances, as with most things, there is no one right way.
I’ve seen people save, & save & save while not enjoying today to then develop cancer & pass away without having done anything they were saving to do one day. I’ve also seen people put a bunch of money into certain funds only to have all the money wiped out by market changes.
Had I not made some financial moves that some may have frowned upon, I wouldn’t own my Callaway, and what are the odds I ever would’ve been able to purchased this car at any other point in time?
02-27-2022, 08:16 AM
Would anyone really cash out their 401k for a depreciating asset such as a C8? Maybe?
