You can make that argument regardless of what age you are, but ultimately you're going to die and you can't take it with you. As long as it's penalty free there is nothing wrong with withdrawing in your 50's if it's part of your plan and you have a good plan.
Can you take money out of your 401K for any reason? Or does it have to be a "hardship loan?"
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You aren't understanding what I'm trying to say.
You are losing the power of compounding. And you are loalos what you could leave for your spouse if something happens to you.
CoffeeStainedUniform
Well-Known Member
You can take the money out at any age but are subject to a 10% penalty plus all local, state, federal taxes.
DON'T DO IT, it's a very bad idea. The money in there will effectevely double every 10 years. Stop contributing (if you must) but stay away from credit cards, payday loans, and 401k withdrawls!
I understand what you're saying I just don't agree with you. If you've got a million+ in your 401k and you retire at 55 there is absolutely nothing wrong with starting withdrawals. If you've only got 200k I agree you should hold off, either keep working or come up with some other plan.
Their is no real answer to this question. Nobody knows how long they are going to live .
Yes and no. I may not know exactly how long I've got but I can pretty much guarantee I wont make it past 100. A good plan should have you solvent til at least 95.
Can't plan for the black Swann events.
That doesn't mean you shouldn't have a plan.
I have a plan. But you also can't plan on how long you are going to live.
Plan it out to 100 (that's what I do) and you'll be on solid ground.
Unfortunately life doesn't work that way
You plan on living past 100?
Nope. But I could have some D* head t bone me on Monday. Then what?
So you shouldn't plan for a long retirement because you might die on Monday? You started out by saying that you shouldn't start withdrawals at 55 because it was too early and you would lose out on growth, now you're saying it doesn't matter because who knows how long you will live?
I have ling term plans in case I'm not around so my wife and the mother of my children doesn't have to be broke and hungry.
And that's fine, my point was that you can have a long term plan and still start withdrawals at 55, the two concepts are not mutually exclusive.
It's too early whatever. Good luck to you
You just keep saying that for no particular reason. Unless you have all the details of someone elses financial situation there is no way you can possibly know this.
You are losing the power of time
If you have to withdrawal at 55. You did it wrong.
If you've got enough in your 401k that you can make regular withdrawals and still have it last at least til you're 100 then it's no problem. People are different, financial situations are different.
