Cashing Out 401k?

there's a theory that you shouldn't spend more than 3 times your monthly salary.
 
i am not sure if they all work the same but with ford motor company they have TESP where you put towards a 401k besides a pension. you can take up to 50 % choose how fast you want to pay it back with little interest.
depending on where it is vested you may lose a lot in the in, but it is a easy way to get money you don't have in your pocket.
 
Have you tried Dumouchelles? They run a monthly auction downtown. They auction wedding sets all the time. Just had a .8 carat engagement ring with the band go for under $1000 when I was there Saturday. Clarity G or H too - nice rock! They also had a 3 or 4 carat Kobe-Bryant-Cheating-on-your-wife doorknob size ring go for like $20,000. Strictly cash or credit card though.

-Geoff
 
stalked_R/T said:
there's a theory that you shouldn't spend more than 3 times your monthly salary.
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That's horse shit direct from the jewelry industry. 3 months salary for a flipping ring is absolutely insane!

I could see $500-1,000 for a nice engraved band of a quality material. Beyond that I think it's just vanity.
 
stalked_R/T said:
I believe I paid about 2900 and used the stores 0% financing on it.

My wifes ring appraised for 7k after we got it and was doing all the insurance stuff. It was a very high quality diamond (not the best, but you can't see any blemishes).
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IMO, I wouldn't step foot in a shop that is over appraising their rings like that. A $4k difference on a $3k ring is fishy to say the least, and not a place I'd continue to do business with.

What's the sense in appraising if it doesn't come back to the purchase price? They're not using true figures, or accurate market conditions in their appraisal. Who knows what else they are doing wrong. The only reason they do that is to give the consumer a comfortable feeling, and it's a false sense of feeling with over inflated figures like that.

I used a family friend, and well known establishment in the Brighton area. It's astonishing hearing stories just like this of people that walk in with their prized possessions, and the consumer finds out they got hoaxed, and the item is no where near the quality/value they think it is.
 
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04GoaT said:
IMO, I wouldn't step foot in a shop that is over appraising their rings like that. A $4k difference on a $3k ring is fishy to say the least, and not a place I'd continue to do business with.

What's the sense in appraising if it doesn't come back to the purchase price? They're not using true figures, or accurate market conditions in their appraisal. Who knows what else they are doing wrong. The only reason they do that is to give the consumer a comfortable feeling, and it's a false sense of feeling with over inflated figures like that.

I used a family friend, and well known establishment in the Brighton area. It's astonishing hearing stories just like this of people that walk in with their prized possessions, and the consumer finds out they got hoaxed, and the item is no where near the quality/value they think it is.
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i believe it was his insurance company who appraised it, not the jeweler
 
cjmatt said:
i believe it was his insurance company who appraised it, not the jeweler
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Yes. My insurance company had the ring appraised. I have the cert for the diamond, but the shop didn't give me an appraisal.
 
benk said:
Anyone have any experience with doing it? I know you take quite the hit in doing so, but was curious if there is any other reason besides that to not do it. I am engagement ring shopping( no, you can't talk me out of it,lol), and having some extra cash to put towards one would be nice.
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Do NOT cash out!!!!! Simply take out a loan against your balance! You get your interest and principal, you just pay to have them manage it...do NOT cash out.
 
smooth said:
3x your monthly salary, WTF? Who buys a 21k ring? Where the hell did this equation come from?
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Came from the Jewelry Sellers to convince people to spend more on their purchases, which is BS! More money to be made from you when you spend 3 months of your salary, vs. $1,000.
 
If you need to borrow money and only have your 401K, then borrow against that. Don't cash out. A rich, wise man once told me the following and have lived by this.

"You can finance a car, You can finance a house, You can finance your kids college education, BUT you cannot finance your retirement!"
 
You can take out a loan against your 401k and pay yourself interest but I'm not sure if there are stipulations on going that route.
 
There is no way in hell I would ever spend 3 months worth of salary on a fuggin ring...sorry...but no. I spent 5500 with the band, and I think that was still too much.
 
smooth said:
3x your monthly salary, WTF? Who buys a 21k ring?
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Well not everyone is a baller like you and makes $7K/mo, but lots of people do buy some crazy expensive rings. Try walking around Somerset and look at the size/quality of stones on most woman's hands. Crazy.

--Joe
 
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Truckblock said:
If you need to borrow money and only have your 401K, then borrow against that. Don't cash out. A rich, wise man once told me the following and have lived by this.

"You can finance a car, You can finance a house, You can finance your kids college education, BUT you cannot finance your retirement!"
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......"and if you do finance (go indebt) with all these things you won't have much of a retirement".
 
4Gas$ said:
......"and if you do finance (go indebt) with all these things you won't have much of a retirement".
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The Miser has spoken!!!

and technically its all relative, I can save up every dime, have a shitty first 70 years, then have a cool retirement, but how much will drag racing be when im 70, and how often are 18year old girls gonna wanna come home with me from the bar...

Im all about reverse retirement, spend it all now, have my fun, then pay it back til im old as hell, then die
 
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cjmatt said:
The Miser has spoken!!!

and technically its all relative, I can save up every dime, have a shitty first 70 years, then have a cool retirement, but how much will drag racing be when im 70, and how often are 18year old girls gonna wanna come home with me from the bar...
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x1000000 :lol:

I don't even understand the interest in scrounging so you can retire early! That seems pretty stupid to me. You only get one life, work hard, play hard. Get money, spend money.

I don't plan on retiring until I'm physically unable to work. I've got no interest in it at all.
 
cjmatt said:
The Miser has spoken!!!
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Aint that the truth. His point is correct though in that if you are going to finance your lifestyle you aren't going to have much of a financial future.

Keep in mind though that you are the one who loses by financing. The common misunderstanding is that financing allows you to get more stuff. The opposite is true. You end up with less stuff. And often much less stuff because of the interest payments.. The best example of that is a typical mortgage where you pay for the home three times over.

Fryguy302 said:
I don't even understand the interest in scrounging so you can retire early!
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There is a middle ground. I save for retirement, but I'm not exactly doing without.
 
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