"Emergency funds are for retards." Coli Poster
- Thread starter Sad Bunny
- Start date
I'm not throwing shade.
I'm just simply saying I disagree and I asked how others feel about it.
It ain't that deep.
Jermaine Colington
All Star
Uhh... with a very large penalty for early withdrawal. Unless it’s a Roth IRA, then the penalty is only for gains earned. Or it’s an approved hardship. That process is also not fastHe has a very valid point moron
if you have a retirement account you can loan yourself money at any given time for whatever
That’s probably exactly what he is referring to.
https://blog.massmutual.com/post/borrowing-from-your-401k-the-risks
The only thing you lose ( which should be obvious ) is the money you would’ve earned on the interest and ours we have to pay ourselves back the interest.
We’re talking about “emergency” funds so how much earned interest would you lose on emergency funds just sitting in your bank account...?
Nope. He's talking about a 401k and he clearly said that in page 2.
He even said he was going to use a 401k loan to purchase his first residence which I know a lot of people do but it's not the smartest idea
Thinking about it I didn’t ready the topic correctly and was more focused on the benefits of a “savings account” generating a trash APY vs an “emergency fund”.
I don’t find anything wrong with having a rainy day fund.
I don’t find anything wrong with having a rainy day fund.
No...you also risk losing the GAINS. If you have 100k but borrow 50K....you're losing on those daily gains....you're losing out on compound interest.
You also run the risk of being held on the hook for that whole 50k plus taxes and early withdrawal penalties if something ever happened to your career
What I'm basically saying is I think it's a good idea to have a rainy day fund of course it doesn't have to be $100,000 sitting in an account but I'm just saying most people should have a rainy day fund
That's all I'm saying....most people should have a rainy day fund.
@Goldz-n-hoez is obviously an outlier and he makes more than the average person.
You can withdraw your funds AFTER the stock sales settle. That alone takes 3 days. I'm so tired of smart dumb nikkas on here man. A rainy day fund is important, particularly if you don't have a credit card.
Eagerly anticipating and waiting doesn't necessarily equate to needing it.I disagree people are eagerly awaiting their tax refund and stimulus checks but now they don't need an emergency savings account?
Waiting two days how big of an emergency can it be? Now what if your emeergency happens friday night. You have to wait til Monday to even request your funds and then have to wait an additional two days to receive them.
He's broke
You not suppose to invest all the money you got, some money you just have put away just to have it put away
that's why its called emergency funds
taking money out from your investments eliminates the point of you investing, and you are too broke to be investing if you need to withdraw from those funds, which is why you need savings you don't touch lmao
The interest you pay is basically the gains you would have hadOkay so you're just going to give up on those potential gains from your 401k or your retirement account because you need to fix a flat tire or your transmission?
If you lost your job...most 401k loans have to be paid back within 60 days or it becomes a withdrawal.....that's taxes and early penalty fees
Yall really dumb.
Hardship withdraws and loans are not the same,