Anyone ever liquidate their 401k in here?

[Truefan31]

I have like 25 grand in mine. if i were to hypothetically say fukk it, cut me a check. what am i walking away with, like 15-20k?

dont plan on doing it anytime soon, but just outta curiosity

basically unless it's a critical life or death emergency don't touch your retirement breh. And if you have a Roth 401k option, I prefer those especially if you're young. Tax free growth, because the employer match is 99% always a pretax contribution.

If you're relatively debt free, max out the 401k since you're getting a match from the employer, which is basically free money. Then hop on that Roth IRA too.

 

[Truefan31]

You better liquidate it before another crash happens and that 15-18k will be around 5-8k like in 2008.

I went through that in 2008, and I've since got it all back plus damn near double. If you're young, you ride the 8-12% average annually wave. The most important thing is to keep contributing. Compounding interest is a great thing when it's in your favor.

 

[Truefan31]

appreciate the post. i actually have zero debt and plenty of money kickin around i was just curious

but since you mention it, whats this about

Typically money market accounts are stable. Neither high risk or high reward. But imo if you're relatively young in working years, put it in good mutual funds/etfs/etc, and ride the 8-12% annual average. There will be highs and lows, but overall you will gain much more due to compounding interest on your contributions. And the more you contribute, the more your employer puts in, etc.

Look at your 401k account, look at what it's in, and try to find good funds that have low expense ratios and at least perform similar to the S&P market. Contribute as much as you can. And don't use it like a bank account, the trap is that people will do it continually and never allow their money to grow like it should.

 

[Truefan31]

Don't you'll lose probably 40% in taxes and fees. When I quit my first job I took the check and bought a cheap car. It was a dumb decision but I was so broke I couldn't afford a car otherwise.

We all been there, growing pains. At least you know now shyt ain't worth it.

 

[BaldingSoHard]

Cash out your 401(k) if it will save your life or the life of someone you love.

Otherwise, don't do it.

 

[Vandelay]

Yeah...


20% penalty plus applicable taxes.

15-18k is a good guess.