at the awful financial advice in this thread. Lemme do what I can to mitigate the damage...
It's taxed when you pull it out plus you have to pay a penalty should you want YOUR money before you're 70 or whatever.
I plan on owning stocks, bonds, commodities, and rental property.
It's a retirement account, breh. You don't put money in there that you're going to need sooner rather than later. That's investing 101. Stocks, bonds, commodities and rental property are all double-taxed (but double-taxed in a real way). First you pay the tax on the income you use to purchase those assets, then you pay tax on the gains. There's no way around paying taxes, it's funny that dudes point to 401(k) as a tax scam somehow, but in reality that money is GROWING tax free for 30 years. That sounds fukking great to me, but do you.
You could be investing that money into assets that yield monthly income. Instead, it's sitting in two financial instruments that cause it to LOSE VALUE the longer it sits in there. I plan on buying storage units to get started.
Dat lost value!!!
Suddenly, you're in need of cash. Where's that money going to come from? Thin air? No. It's going to come from that sh!tty 401k.
Again, why would I pull money out of a retirement account? Maybe YOU would do that, but I sure wouldn't unless it was life-or-death, and even in *that* scenario, isn't it better to have that 401(k) to draw from rather than not?
I'm sure a lot of people said the same thing in 2006, then 2007/8 happened.
And that impacted ONLY 401(k) accounts, or did that impact anybody with any type of investment account like the stocks and bonds you mentioned above?
My thing is what if the dollar tanks then your 401k is going to be worthless. Also if you die before you retire will the money be left to your children or what happens then?
If the dollar tanks, you're gonna have bigger problems than what happened to your 401(k). And yes you name a beneficiary to receive the benefits of your account if you die before you withdraw it.
Contributing top dollar to your 401k while still in debt(mortgage, student loan excluded) is hustling backwards if you ask me
Negative. Pay yourself FIRST. Gotta get started on that "time value of money" wealth.
