OK, all you older dudes (over 40) Give some advice. All you younger dudes (listen and learn) and give your opinion/advice too..

The factory I work at (Purolator) was just bought by Bosch. Things are starting to look good for my plant. (#1 filter plant in the world). We should be doing some real good business in the foreseeable future.

Here's my query. We have a 1 time chance to cash in our 401 K values. My wife and I have a sizeable amount between us. (probably in excess of 100K).

We are gonna cash it in. Take the penalty (10%) and we will have to pay taxes on it . We figure we'll get at least 60 K. Albiet this is our retirement money, I cant retire for another 20 some years .

I can start my 401 k savings from now till retirement and should be ok. Plus SS will keep me floating when I'm 67 and older. I hope..

What would you do?? I say lets spend it now and pay off the dam credit cards. And get that pool we always wanted. Plus my new $6000 computer. And have a few large left over.. ( new stang stuff. lol). My company will match a buck for buck at 4% then $.50 a buck up to 8%. So building my money back should be good.. Any opinions.

Oh and BTW I have worked my *** of for 27 years at this place so I earned it all I think...

 

:banana: Invest in realestate! :banana:

 

Save it!

 

$6,000 computer? I would never spend that much for a PC...holy ^%#*%&$#%%^%^#%$*%#$^ ^$&#*$^&#*#$ ...$#&*(^#&*(#(*

 

get another roth ira or start one if you dont have one yet. keep investing it with the roth after 20 years you can get a couple hundred grand from it depending on how much you put in every year. im 22 and still havent started a savings plan. my plans are playing the market with 2k, then putting 5k in mutual fund for 4-6 years and 2 roths (mine and wife). i got 4 more years left in the military maybe 4 more if i retrain. then im out so i need to have some sort of money to fall back on once i get out and cant find a well paying job.

 

Im 22 and ive been in my 401k for about a year. Im still a full time student and work 40 hours a week. never hurts to start early.

 

thats why I said you young guys listen.. Start early. I didn't start saving till I was 32. Geez I could be rich by now.. I will start my new 401 k with 15% of my weekly pay going to my new plan. I will be wealthy when I'm too old to care LOL...:wallbash:

 

Actually, I have a better suggestion. Get all that money and get that honda civic hood on your mustang like that dumbass with the gold v6 and black widow body kit. he got like 35 horsepower from that and 10hp from seafoam.

 

maybe I should start my 401K...!

 

I don't have a 401 K.I invest in my company's discount stock plan.I have 6% held out every week that goes to purchasing the stock.Here before too long I'm going to raise it up to 10% or higher.

I work with a guy that has been doing it for 20 years now and has over $500,000 in company stock.If it ever split's again he will have alot more.

 

You should have the option to borrow and pay yourself the interest. I think spending 6k on a pc is not a good idea, in just one year that pc will be 3k and keep going down by half till it is worthless. Paying down credit debt is very important as you are making money on one end and losing on another. But then again you dont have to dig into your savings as you could always apply for a credit card that offers 0apr no balance transfer fee for a year or more. If you need more time than before the one year is up do another transfer to a new credit card that has same offer but close the previous account.

 

I am enrolled in a TESPHE. I think you should enjoy yourself now because when you get older your kids and grands are going to be asking for stuff. LOL

 

Don't cash out your 401K.. Keep saving, at the minimum roll it over to a Roth IRA. The penalties and taxes alone will exceed the interest on any credit cards you plan on paying and the rest of the stuff you want to buy are depreciable items that won't do you any good in 10 years. . If you want to pay off CC debt, re-fi the house (not a HELOC based on prime) that's at a low fixed rate, deduct the interest in your taxes and keep the retirement nest egg (there are some good, tax deferred / sheltered college savings funds out there too). Your net payments (mortgage plus CC will drop to just a slightly higher mortgage pmt so you'll have better monthly cash flow). It would take you years to get any retirement fund back to that amount and you'd be throwing away almost $40K for taxes and fees that you don't have to. I am assuming you're in your 30s, maybe you stop contributing so much to the 401 and start directing it into a balanced investment portfolio with a little more risk (and possible reward). Unfortunately, in even the most stable situations, things can always drop out from under you (I'm in the middle of a big corp buyout and not sure if I'll have a job next month or not) but i sure am glad that I have that 401K there and would be able to provide for my family until I secured another job.. If that never happens, then I retire a few years earlier. just my 2 cents. If you did decide to take it out, sell your house and buy a bigger house..that seems to be the only investment that is outpacing the US market right now, or buy another house and flip it or rent it out.

 

Most excellent advice. And we have weighed all those options. And deep down I know I should rollover my 401 to my new co. Bosch. They don't have public stock so they give us plenty of investment options. high risk, low risk, etc. But I figure with only 1 child to try to put through college, We can start saving again. (between my wife and I we make 75K a year). I'll just be more able to actually put more into the 401 K after we get the credit cards under control. As for a home equity loan, My wife says ( NO ) and I listen to her cuz she be smart one of us 2, LOL. My house will be paid for in 10 years and we got it fixed to our liking, Not gonna sell it. I know there are some better ways to do this but we figure lets get the stuff we want now. And actually have more money each month to save, spend, invest. Plus I'm hoping to hit the Powerball Tonight.. Weee. Thanks for you guys's input. I'll take a pic of the new pool.

 

Too bad I'm winning the Powerball though.Maybe next week

 

No offence but imo your wife doesnt know what she is talking about. Taking a home equity loan (maybe she is thinking second mortgage) is a much better way to clear up CC debt than taking out your 401K.

Not only is the interest on a home equity loan is tax deductable and will most definatly be lower interest than the credit cards. Taking out your 401K now you are taking a 40% hit right now. If you leave that $$ in the 401K it will grow tax free until you start to pull it out at whatever the age will be then.

But imo going for the pool on borrowed money would be stupid. You will never get the money back out of it when you sell the house and not to mention the extra expense of water to fill it, heating it if need be, cleaning supplies, repairs down the road.

It never makes sense to me to use borrowed money for a non-essential item such as a pool, toy car, etc. I know I am a young guy but I would only ever take a loan out for my mortgage.


That and to be honest factory jobs in the US could be moved to Mexico or China at any time. Save what you can now just in case something does happen.

 

oh well thats nice, i think everyone can expect a present then right?... lol

Realestate! REALESTATE! lol

 

IMO you really need to talk to a finacial advisor. Check with you bank, they probably have one or whoever manages your 401K accounts. You really should roll that $ over to an IRA or something. 40% is a big hit for all your hard work and time you have put in to build it up. In the end, you are the one that has to live with what ever you chose to do........if it were me, I would seek a finacial advisor or 2 and get their opinions. Good luck.

 

DO NOT cash it out and blow it on stuff like that. Cash it out, pay off the credit cards, and start a Roth IRA and some other investment accounts. It would be absolutely stupid, and down right irresponsible in my opinion. While things could be going great right now, you NEVER know what the future may hold for you and your job, especially in todays market. I say cash it out, and pay off your debts, and maybe like someone else said buy some land or real estate. BUT DO NOT BLOW IT. You dont really need a 6k dollar computer, well, unless its for work or something, and the stang getting parts is NOT worth blowing your retirement. Either leave it in, or cash it out and put it somewhere with a better interest rate.