i mean if your dad has money and is willing to help you in any regard it probably makes more sense tax wise for him to gift you some money (and, if needed, pay him back) than for you to cash out the 401k which is just bad for tax reasons
Right, the issue there has more to do with the family politics of it. It maybe says a lot that I would rather lose a few thousand dollars in taxes than ask my dad to give me money, but...
Before I actually go ahead with cashing out my 401k I'll talk to him about it and see where he stands, but I just don't see the advantage of spending any more time than I have to working for someone else when it makes me this unhappy and all the real money is in the ownership of something.
Alright, I'm pretty settled on my course of action, which is that I'm going to save for the next few months, then cash out my 401k
...
The only reason I'm so comfortable with cashing out on my 401k, of course, is simply because my actual retirement plan remains what it has always been; inheritance.
This is a roadmap for failure.
Define failure. I'm fucking sick of living scared in the shadow of wealth.
0
Donkey KongPutting Nintendo out of business with AI nipsRegistered Userregular
Cashing out your 401k early is not a good plan. It's never a good plan. It's an emergency plan for when you are going to die or end up sleeping rough.
Thousands of hot, local singles are waiting to play at bubbulon.com.
+14
Deebaseron my way to work in a suit and a tieAhhhh...come on fucking guyRegistered Userregular
Alright, I'm pretty settled on my course of action, which is that I'm going to save for the next few months, then cash out my 401k
...
The only reason I'm so comfortable with cashing out on my 401k, of course, is simply because my actual retirement plan remains what it has always been; inheritance.
This is a roadmap for failure.
Define failure. I'm fucking sick of living scared in the shadow of wealth.
Imagine the golden girls, but in a shitty apartment with no money where bill collectors call daily, arguing with your roommate over who ate your store brand can of beans, and internet that is occasionally shut off for non payment.
an investment account with limited options that you can contribute to pre-tax. Often your employer matches a portion of your contributions. It's a great way for companies to reduce their payroll costs since they don't have to pay Medicare or Social Security on either the employee or employer contributions.
an investment account with limited options that you can contribute to pre-tax. Often your employer matches a portion of your contributions. It's a great way for companies to reduce their payroll costs since they don't have to pay Medicare or Social Security on either the employee or employer contributions.
I guess that you could say Arch's post was a case of
an investment account with limited options that you can contribute to pre-tax. Often your employer matches a portion of your contributions. It's a great way for companies to reduce their payroll costs since they don't have to pay Medicare or Social Security on either the employee or employer contributions.
(the joke wasn't that I don't know what it was, the joke is that I barely have one)
(actually I don't remember what kind of account my paltry retirement account is hmmm I should look at that)
Alright, I'm pretty settled on my course of action, which is that I'm going to save for the next few months, then cash out my 401k
...
The only reason I'm so comfortable with cashing out on my 401k, of course, is simply because my actual retirement plan remains what it has always been; inheritance.
This is a roadmap for failure.
Define failure. I'm fucking sick of living scared in the shadow of wealth.
Winky, tanking your financial stability by simultaneously leaving your job for an independent venture, pulling out from your 401k, and tapping your backup inheritance plan for money is way more likely to result in you being stuck in a corporate job "in the shadow of wealth" than going about things in a less risky way.
Pursue your projects, sure, but don't do so by simultaneously cutting or straining every anchor you have. Leave the 401k alone, set up the independent freelance work before doing the projects, and guarantee the projects with your own cash or family loans instead of your 401k.
I ate an engineer
+12
HonkHonk is this poster.Registered User, __BANNED USERSregular
Real talk though good and bad is a scale and point of reference thing. Being in the shadow of wealth means you won’t starve but economic control even if passive is a very strong form of control.
I essentially in hindsight feel like I had no autonomy over myself before about age 27 when I started making comfortable money, enough money to never ever have to ask my family for anything ever again.
It is very funny to see everyone warning against the certain doom to follow Winky cashing out a retirement account while sitting here with definitely not a retirement account to even consider cashing out
+11
ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
edited January 2020
i had access to a 401k for the first time in my life last april
then i changed jobs and it was contract-to-hire so i didn't have a 401k for like four months
so now i have one with $1,400 in it and one with $240 in it
the idea of ever being able to retire is such a fucking joke to me at this point
Or, in other words: Everyone is three really bad months from being homeless. Nobody is three really good months from being rich.
Quitting your job and pulling your 401k out to fund a project is 2.5 bad months right off the bat. Easing workload and tapping other resources is, like, 1 bad month.
It is very funny to see everyone warning against the certain doom to follow Winky cashing out a retirement account while sitting here with definitely not a retirement account to even consider cashing out
Cashing out a retirement account to spend it down is a lot less stable than just not having one, tbf
It is very funny to see everyone warning against the certain doom to follow Winky cashing out a retirement account while sitting here with definitely not a retirement account to even consider cashing out
Cashing out a retirement account to spend it down is a lot less stable than just not having one, tbf
It is very funny to see everyone warning against the certain doom to follow Winky cashing out a retirement account while sitting here with definitely not a retirement account to even consider cashing out
Cashing out a retirement account to spend it down is a lot less stable than just not having one, tbf
huh?
Cashing out a retirement account isn't just dangerous because you eats all your retirement funds, it's indicative of an unstable financial situation which can end catastrophically if the 401k funds aren't replaced as an income source before they run out.
Donkey Kong on
Thousands of hot, local singles are waiting to play at bubbulon.com.
It is very funny to see everyone warning against the certain doom to follow Winky cashing out a retirement account while sitting here with definitely not a retirement account to even consider cashing out
Cashing out a retirement account to spend it down is a lot less stable than just not having one, tbf
huh?
Intentionally burning down retirement savings for a project puts you in a position where loans or necessary continued expenses continue long after the project fails to recoup money and those savings are exhausted.
A person getting by with no savings is more stable than a person who cashes out their savings to spend $20,000/mo on a restaurant, even if the latter has more liquid cash.
milski on
I ate an engineer
0
ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
It is very funny to see everyone warning against the certain doom to follow Winky cashing out a retirement account while sitting here with definitely not a retirement account to even consider cashing out
Cashing out a retirement account to spend it down is a lot less stable than just not having one, tbf
huh?
Cashing out a retirement account isn't just dangerous because you eats all your retirement funds, it's indicative of an unstable financial situation which can end catastrophically if the 401k funds aren't replaced as an income source before they run out.
say what you will about poverty, it's a stable condition
Being around alligators every once in a while has killed my sense of fear of them because I haven't had the luck to see them do anything.
Looking up alligator deaths on Wikipedia, it looks like it is mostly getting attacked due to having dogs that are about the right size for prey, being a child that is about the right size, or swimming in the water with alligators.
Posts
Fuckin' yikes
Right, the issue there has more to do with the family politics of it. It maybe says a lot that I would rather lose a few thousand dollars in taxes than ask my dad to give me money, but...
Before I actually go ahead with cashing out my 401k I'll talk to him about it and see where he stands, but I just don't see the advantage of spending any more time than I have to working for someone else when it makes me this unhappy and all the real money is in the ownership of something.
Define failure. I'm fucking sick of living scared in the shadow of wealth.
Imagine the golden girls, but in a shitty apartment with no money where bill collectors call daily, arguing with your roommate over who ate your store brand can of beans, and internet that is occasionally shut off for non payment.
Is being in the shadow of wealth a bad place to be?
“As I walk through the valley in the shadow of wealth” etc
an investment account with limited options that you can contribute to pre-tax. Often your employer matches a portion of your contributions. It's a great way for companies to reduce their payroll costs since they don't have to pay Medicare or Social Security on either the employee or employer contributions.
I love teaching, I love it a lot and it's the thing I'm most extensively trained in
But there is no world that I'd be able to cash out ANY kind of account and be comfortable for even a week
My wife is struggling to find a job plus she has mounting health issues
Maybe I do need to find some sort of data analyst job???
Hmmm
I'd prefer to freelance/ do contract tho since I already have stable employment
hmmm
I guess that you could say Arch's post was a case of
poor sarcasm
(the joke wasn't that I don't know what it was, the joke is that I barely have one)
(actually I don't remember what kind of account my paltry retirement account is hmmm I should look at that)
Winky, tanking your financial stability by simultaneously leaving your job for an independent venture, pulling out from your 401k, and tapping your backup inheritance plan for money is way more likely to result in you being stuck in a corporate job "in the shadow of wealth" than going about things in a less risky way.
Pursue your projects, sure, but don't do so by simultaneously cutting or straining every anchor you have. Leave the 401k alone, set up the independent freelance work before doing the projects, and guarantee the projects with your own cash or family loans instead of your 401k.
I essentially in hindsight feel like I had no autonomy over myself before about age 27 when I started making comfortable money, enough money to never ever have to ask my family for anything ever again.
then i changed jobs and it was contract-to-hire so i didn't have a 401k for like four months
so now i have one with $1,400 in it and one with $240 in it
the idea of ever being able to retire is such a fucking joke to me at this point
Quitting your job and pulling your 401k out to fund a project is 2.5 bad months right off the bat. Easing workload and tapping other resources is, like, 1 bad month.
But it loses its thread
Cashing out a retirement account to spend it down is a lot less stable than just not having one, tbf
huh?
I've put about *maths* 4 months of salary into it so far.
He Says He Stabbed a Student to Defend His Home. His Home Is a Box.
The sequel to Warhammer 400k I think.
But it loses its thread
Cashing out a retirement account isn't just dangerous because you eats all your retirement funds, it's indicative of an unstable financial situation which can end catastrophically if the 401k funds aren't replaced as an income source before they run out.
Intentionally burning down retirement savings for a project puts you in a position where loans or necessary continued expenses continue long after the project fails to recoup money and those savings are exhausted.
A person getting by with no savings is more stable than a person who cashes out their savings to spend $20,000/mo on a restaurant, even if the latter has more liquid cash.
say what you will about poverty, it's a stable condition
R - death
E - from
T - treatable
I - but
R - unaffordable
E - illness
M - ent Plan
Looking up alligator deaths on Wikipedia, it looks like it is mostly getting attacked due to having dogs that are about the right size for prey, being a child that is about the right size, or swimming in the water with alligators.