Scooter70
Club Member
x1,000,000
Cashing Out 401k?
- Thread starter benk
- Start date
x1,000,000
soap
Forum Member
That is more like 2 times. Example.....$200,000 mortgage costs you about $400,000 over 30 years using 5-6% interest.
--Joe
Fryguy302
Club Member
I am with you there....I just crack up when I see some of the cheap skates on this board posting about scrounging money every time a financial thread comes up. Do these guys worship the almighty dollar so much that they have to horde it to be happy? I don't get it. I'm probably not as financially irresponsible as I sound, but I for sure won't ever be caught scrounging money like that. I've had a lot of fun so far in 41 years and spent a lot of money (for a poor guy) and I don't regret a single dollar of it. I'll just work hard and get more. Hopefully I will continue to do so for another 40 years or so :lol:
mdhmi
Club Member
It's just a form of greed, selfishness, and insecurity.
fyoung7
Club Member
i tried the scrounging money for years and still have none so now i am trying the other route. i have a nice camper i did have a nice car until stolen and i'll get another one. 15 more years and i am out the door evn if i am not money wise ready. seen way to many people stick around in a factory just to die a year after the leave.
as for a ring i would not pay more then 700 to 1000. it is more about the love then her showing all her friends some big rock. lol back in the day i could of got one out of a gum ball machine and it would of done fine. if she loves you she should understand what you can afford
LTLHOMER
Club Sponsor
What about when the girl sees you spend tens of thousands every year on the car? Obviously you can afford a nice ring so then how do you sell that story? Seriously PM me how to sell that story! lol
4 cam tbird
Club Member
You obviously love the car more than her if you spend more on it than her. There's no story to sell. You can forget about the 3x monthly salary ring. You're going to need 3x yearly salary.
cjmatt
Club Member
hahaha x2. who knows, fox bodies may be worth millions when I retire. Im saving my money and trying not to finance when necessary. Ive been irresponsible in the past, but I pay off my debts, have a good credit score, and keep money in my pockets. Some day soon Ill be content with my toys and ill be able to pay everything off relatively quickly. Ive got about 12k in debt to pay off to get back to zero, not what id call a huuuge debt, although its comprised of multiple small loans so I pay alot a month paying it off, but itll disappear quickly as well.
Anyhow, as everyone has said, dont cash it out, but take the loan, its just borrowing from yourself, youre the bank. You only lose out on the ability to make money with what you pull out.
But youll also have a wife soon enough, and she'll suck way more out of you than any ring, so dont worry about it so much, buy the ring you want
smooth
Club Member
It's very easy, if your wife is into cars your smooth sailing
But I sold my motorcycle to buy my wifes ring, probably a good thing
cjmatt
Club Member
Haha, I asked my girl up at Ignace if shed rather me spend $15k on a ring, or $2k on a ring and then get her a nice $13k 1976 Bandit Trans Am. Thats how you gotta spin it.
You buy her a $1000 ring, AND a URATCHKO motor for her engagement
Roadrage
Easily Irritated
LTLHOMER
Club Sponsor
That's like saying, "flying is very easy, if you have a set of wings." lolIt's very easy, if your wife is into cars your smooth sailing
But I sold my motorcycle to buy my wifes ring, probably a good thing
LTLHOMER
Club Sponsor
Who are you again? I remember someone a little like you but he died a little while ago...
4 cam tbird
Club Member
:lol: Minneapolis this weekend, Nebraska next weekend, then I'll actually be around some after that!
That Guy
Club Member
I, too, am in a similar area with my 401k. My previous employer had started one in my name, and I had contributed nothing to it in 6 months. I wasn't making enough or working enough hours due to lack of work to be able to contribute to it.
Instead of rolling it over to a new employer (when I get one...) I want to cash it out, because I need money for my testing for computer school. The state is covering the cost of the schooling through No Worker Left Behind, but the testing is to be paid for on my own.
The 401k is small, just a shade over $1,000. I just wish I knew do the cent what would need to be paid in taxes/penalties and when they would be due. I've heard from a few people that the tax is immideately taken out... so if anyone can help me out as well, i'd appreciate it.
Instead of rolling it over to a new employer (when I get one...) I want to cash it out, because I need money for my testing for computer school. The state is covering the cost of the schooling through No Worker Left Behind, but the testing is to be paid for on my own.
The 401k is small, just a shade over $1,000. I just wish I knew do the cent what would need to be paid in taxes/penalties and when they would be due. I've heard from a few people that the tax is immideately taken out... so if anyone can help me out as well, i'd appreciate it.
fyoung7
Club Member
well for me i sold the story and it goes like this. 20 years ago no money cheap ring then 2 kids house now 20 years later more money toy's for daddy. ring what ring. hell she wants new carpet
You'd only get a couple hundred bucks. Why bother? Again, in 30 years when you retire, with compounding interest, blah blah. It will be much larger then, than now!
You don't need a new employer. Call the company who manages your 401k (they should be mailing you a statement every couple months) and request a rollover check. It will be made out "FBO your name" for the full amount you have in the account. You then give that check to a financial adviser, and they will start an IRA with that check.
WhiteHawk
Club Member
I think it is around 20% withholding up front Federal, then another 20% penalty on Federal taxes next year, plus you claim the entire thing as income like it was a W2, so that increases your taxable income. You don't have to pay the state and local taxes until you figure it into your income at the end of the year. Works out to about half. I cashed an IRA about 10 years ago when I was young and stupid, I think it is about the same for a 401k.
-Geoff