Thank you cares act!!!! 401k is mine

[Brownslave688]

To avoid PMI

Highly unlikely it’s enough offset the gains you would have made.

 

[Brownslave688]

Slightly different topic but that is exactly what I can’t get through to a buddy of mine. He has taken out quite a few substantial “loans” against his 401k over the years. Not for emergencies. Not for anything most people would consider worthy of raiding their nest egg for. Only to buy cars and a few other odds and ends. He justifies it by saying “it’s the best way to borrow money cause you’re paying yourself back with interest.

Is your buddy @quad decade guy

 

[IVE GOTTA PACKAGE 4U]

Slightly different topic but that is exactly what I can’t get through to a buddy of mine. He has taken out quite a few substantial “loans” against his 401k over the years. Not for emergencies. Not for anything most people would consider worthy of raiding their nest egg for. Only to buy cars and a few other odds and ends. He justifies it by saying “it’s the best way to borrow money cause you’re paying yourself back with interest.

It's retirement plan. And that's what the money is intended for. If you going to lose your house or some other big other life event then that's fine then you got to do . but to go on vacation or buy a car Is just being completely stupid

 

[Overpaid Union Thug]

Is your buddy @quad decade guy

My buddy is definitely not employed at UPS. Career factory slave that’s is known to make questionable financial decisions.

It's retirement plan. And that's what the money is intended for. If you going to lose your house or some other big other life event then that's fine then you got to do . but to go on vacation or buy a car Is just being completely stupid

Best case scenario would be to borrow and pay yourself back in an expedient manner (YEAH RIGHT!) and at a rate that equals the market gains (yeah right again!) during the loan period, or beats them during a downturn. But I know he, and likely most other people, pays back the minimum at the slowest pace required.

 

[Brownslave688]

Best case scenario would be to borrow and pay yourself back in an expedient manner (YEAH RIGHT!) and at a rate that equals the market gains (yeah right again!) during the loan period, or beats them during a downturn. But I know he, and likely most other people, pays back the minimum at the slowest pace required.

Sounds like my wife’s coworkers who all have the 30 year school loan repayment plan. While we will be done in 2 years.

 

[ManInBrown]

you might need that 401k money to pay those high property taxes when your house is paid off and you are retired

Chances are I will never own until I retire and move out of NJ. Can’t afford to own here. Im not a fan of OT. I can’t do it. I’ve never been someone that lives to work. I put my 8.5-9 hours in every day and I go home. Once I retire I’ll move somewhere cheap and I’ll buy. NJ is a joke. And I live In a top 3 most expensive county. I hate NJ

 

[DOK]

In my case, I can’t contribute to it anymore, and I’d like to be able to put a down payment on another house and rent out my current one. Window of opportunity to do this without 10% penalty, plus it’s all UPS stock so it’s higher than its ever been. It’s the smaller of my two 401Ks and I’m keeping my Teamster Prudential one.

How are the taxes that you pay on it calculated? If you pull out $100,000 let’s say, do you owe $27,000 in taxes?

 

[IVE GOTTA PACKAGE 4U]

How are the taxes that you pay on it calculated? If you pull out $100,000 let’s say, do you owe $27,000 in taxes?

And lose years of compounded earnings

 

[baklava]

How are the taxes that you pay on it calculated? If you pull out $100,000 let’s say, do you owe $27,000 in taxes?

For starters, I believe you can only pull up to 50K

1/3 of the withdrawal counts against your income for the next 3 years. I opted to have no tax withheld and to handle it myself later

 

[baklava]

And lose years of compounded earnings

Making this move is definitely not without its cons and caveats but I think it’s the right move for me now. I wouldn’t have liquidated my entire 401K.

 

[IVE GOTTA PACKAGE 4U]

For starters, I believe you can only pull up to 50K

1/3 of the withdrawal counts against your income for the next 3 years. I opted to have no tax withheld and to handle it myself later

It's 100k

 

[baklava]

It's 100k

Ok, I think the UPS Savings plan put their own limit on what you can withdraw because they told me 50K

Didn’t matter, I didn’t have that much anyway

 

[IVE GOTTA PACKAGE 4U]

Ok, I think the UPS Savings plan put their own limit on what you can withdraw because they told me 50K

Didn’t matter, I didn’t have that much anyway

That's even more reason not to take it out

 

[baklava]

That's even more reason not to take it out

Too late now!

I wouldn’t have done it if that was my entire nugget. Not touching my real 401K.

 

[ManInBrown]

It’s 100K max and you can spread the taxes owed over three years. I opted to have 10% shaved right off the top. Taxes owed will be minimal over three years.

 

[DriveInDriveOut]

It’s 100K max and you can spread the taxes owed over three years. I opted to have 10% shaved right off the top. Taxes owed will be minimal over three years.

Hope you took into consideration that two or three years from now your income and tax rate will probably be higher.

Might be better to pay the taxes now especially if the amount it adds to your income doesn't cross over into the next tax bracket.

Or better yet, put it back in and don't use your retirement account as a piggy bank, that way you won't owe any taxes at all.

 

[DOK]

Hope you took into consideration that two or three years from now your income and tax rate will probably be higher.

Might be better to pay the taxes now especially if the amount it adds to your income doesn't cross over into the next tax bracket.

Or better yet, put it back in and don't use your retirement account as a piggy bank, that way you won't owe any taxes at all.

Have to keep in mind we are provided a pension, our 401k is not necessarily relied upon as sole retirement income as it may be for others.

 

[IVE GOTTA PACKAGE 4U]

Have to keep in mind we are provided a pension, our 401k is not necessarily relied upon as sole retirement income as it may be for others.

And many pensions are in bad shape. Plus you never get a raise once you retire. Just think if you live another 30 years after retirement

 

[BadIdeaGuy]

Have to keep in mind we are provided a pension, our 401k is not necessarily relied upon as sole retirement income as it may be for others.

Isn't this basically the same argument as saying you don't need to invest for retirement because social security will be there for you?

 

[Faceplanted]

People should mind their own business

If somebody takes out their money and ruins their retirement, who cares? People make bad decisions, and decisions always have consequences. People make bad money/life decisions all the time and pay the price. It’s literally their fault. Who cares? Worry about your self and what you can control.

People are low key seething, that people are taking out money because they kind of want to do it then selves. The same seeth happens when somebody wants to leave a good careeer like ups to start a business. People wish they had the balls, but they don’t so they have something to say. “Be careful”. “I wouldn’t do that”. Imagine thinking anybody besides your immediate inner circle cares about you. Imagine thinking that people in that same immediate circle want to see you fail.

There is a small % of people who have the “cheat code” to life. If nobody is stupid everybody would be equal.