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      01-09-2020, 04:44 PM   #23
iminhell1
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Never did look into fees of pulling 401k, but I do have to go talk with them being I left the company. Roll over to IRA I guess is the option now. I did find some 'hardship' option. Need to find out more about what that is.

But I took out loan to pay for school, which starts Monday (01/13/2020).
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      01-09-2020, 05:03 PM   #24
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Well if you are no longer with the company you either have to cash it out or roll it over to an IRA. I would def rollover to an IRA.
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      01-09-2020, 07:48 PM   #25
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Not necessarily. Some plans allow the account to remain open indefinitely. I have accounts that were opened 30 years ago, almost a dozen employers ago.
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      01-10-2020, 11:39 AM   #26
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Originally Posted by chassis View Post
Not necessarily. Some plans allow the account to remain open indefinitely. I have accounts that were opened 30 years ago, almost a dozen employers ago.
Wow then you likely missed out on some serious additional growth in a lower cost IRA vs 401k. Generally 401k funds have much higher expense ratios then funds/ETFs you can get in an IRA.
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      01-10-2020, 01:56 PM   #27
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My ultimate answer is to cashflow school and pay as you go. It's easier than many people think.

That being said - if that isn't an option for you then do not use the 401(k) and here is why:

1) Aside from the taxes, you will pay a 10% penalty and lose the interest gained if it was still there.
2) Overall, that nets to an interest rate likely to be somewhere around 30%.

Would you borrow money at 30% interest to go to school? I think we all know the answer to that question.

With respect to your comments about no growth - something is wrong. The market has nearly doubled in the last year. Just having it in standard index funds would have netted you a gain of double what you had last year.

You need to make some adjustments in there right away.
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      01-10-2020, 08:21 PM   #28
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Quote:
Originally Posted by Run Silent View Post
My ultimate answer is to cashflow school and pay as you go. It's easier than many people think.

That being said - if that isn't an option for you then do not use the 401(k) and here is why:

1) Aside from the taxes, you will pay a 10% penalty and lose the interest gained if it was still there.
2) Overall, that nets to an interest rate likely to be somewhere around 30%.

Would you borrow money at 30% interest to go to school? I think we all know the answer to that question.

With respect to your comments about no growth - something is wrong. The market has nearly doubled in the last year. Just having it in standard index funds would have netted you a gain of double what you had last year.

You need to make some adjustments in there right away.
Uhh the market has done well over the last year but it most certainly has not doubled...
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      01-10-2020, 09:55 PM   #29
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Quote:
Originally Posted by gatorfast View Post
Quote:
Originally Posted by Run Silent View Post
My ultimate answer is to cashflow school and pay as you go. It's easier than many people think.

That being said - if that isn't an option for you then do not use the 401(k) and here is why:

1) Aside from the taxes, you will pay a 10% penalty and lose the interest gained if it was still there.
2) Overall, that nets to an interest rate likely to be somewhere around 30%.

Would you borrow money at 30% interest to go to school? I think we all know the answer to that question.

With respect to your comments about no growth - something is wrong. The market has nearly doubled in the last year. Just having it in standard index funds would have netted you a gain of double what you had last year.

You need to make some adjustments in there right away.
Uhh the market has done well over the last year but it most certainly has not doubled...
Fair. It's doubled in the last 4 years. Point still stands.
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      01-10-2020, 11:07 PM   #30
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Terrible idea.
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      01-11-2020, 06:27 AM   #31
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Originally Posted by chassis View Post
Not necessarily. Some plans allow the account to remain open indefinitely. I have accounts that were opened 30 years ago, almost a dozen employers ago.
Yes, I held mine for over six years with a company’s 401k (or 409k in Pres. Trump’s world hehe) I was no longer employed at. I wasn’t allowed to add more funds but I could keep what I had in there.
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      01-11-2020, 06:31 AM   #32
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Originally Posted by Run Silent View Post
Fair. It's doubled in the last 4 years. Point still stands.
I was going to say, I need you as my advisor.
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      01-11-2020, 07:13 AM   #33
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Quote:
Originally Posted by Run Silent View Post
Quote:
Originally Posted by gatorfast View Post
Quote:
Originally Posted by Run Silent View Post
My ultimate answer is to cashflow school and pay as you go. It's easier than many people think.

That being said - if that isn't an option for you then do not use the 401(k) and here is why:

1) Aside from the taxes, you will pay a 10% penalty and lose the interest gained if it was still there.
2) Overall, that nets to an interest rate likely to be somewhere around 30%.

Would you borrow money at 30% interest to go to school? I think we all know the answer to that question.

With respect to your comments about no growth - something is wrong. The market has nearly doubled in the last year. Just having it in standard index funds would have netted you a gain of double what you had last year.

You need to make some adjustments in there right away.
Uhh the market has done well over the last year but it most certainly has not doubled...
Fair. It's doubled in the last 4 years. Point still stands.
No it hasn't...

Where are you seeing this? Using the S&P 500 as a benchmark it was ~2,000 in 2016 and is a little over 3,000 today. A roughly 50% increase which is great but far short of a double.
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      01-11-2020, 07:27 AM   #34
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To answer the post question. NO !
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      01-11-2020, 03:29 PM   #35
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Quote:
Originally Posted by gatorfast View Post
Quote:
Originally Posted by Run Silent View Post
Quote:
Originally Posted by gatorfast View Post
Quote:
Originally Posted by Run Silent View Post
My ultimate answer is to cashflow school and pay as you go. It's easier than many people think.

That being said - if that isn't an option for you then do not use the 401(k) and here is why:

1) Aside from the taxes, you will pay a 10% penalty and lose the interest gained if it was still there.
2) Overall, that nets to an interest rate likely to be somewhere around 30%.

Would you borrow money at 30% interest to go to school? I think we all know the answer to that question.

With respect to your comments about no growth - something is wrong. The market has nearly doubled in the last year. Just having it in standard index funds would have netted you a gain of double what you had last year.

You need to make some adjustments in there right away.
Uhh the market has done well over the last year but it most certainly has not doubled...
Fair. It's doubled in the last 4 years. Point still stands.
No it hasn't...

Where are you seeing this? Using the S&P 500 as a benchmark it was ~2,000 in 2016 and is a little over 3,000 today. A roughly 50% increase which is great but far short of a double.
Why are you arguing with me on this? You're the guy where someone asks if the sun rises in the east and I say yes, in the east at 710am. And then you whine that it's actually 714am. Point still stands.

I used the DJIA.

16,300 in Jan 2016. Almost 30,000 today. Close as makes no difference, it doubled.

Stop being an internet pedantic.
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      01-11-2020, 05:03 PM   #36
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I'm gonna step in and agree with Run Silent. Gatorfast's obsession over whether or not the market has exactly doubled over the last 4 years is not helpful and misses the point and spirit of Run Silent's post.

The point is that the original poster:

(1) is grossly underfunding his retirement accounts
(2) is misinformed to even consider taking money out of his 401k before retirement age given the serious tax penalties
(3) has missed out on tremendous market returns over the past 5 years
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      01-11-2020, 07:45 PM   #37
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Sheesh tough crowd. I simply pointed out that it hadn't doubled in the last year which was the original comment. Then I looked at the S&P over 4 years as suggested and saw it wasn't close to doubling either. Wasn't trying to pick a fight, just have a discussion and correct some initial misinformation. Y'all need to lighten up.
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      01-11-2020, 07:52 PM   #38
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Quote:
Originally Posted by Run Silent View Post

Would you borrow money at 30% interest to go to school? I think we all know the answer to that question.
i love balance sheet analysis. makes decisions easy and unemotional.
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