Taking money from retirement to pay off debt?

[djthegreat88]

that 40's gonna be like 20 after taxes/early withdrawal fees and it'll fukk ur tax return next year

u should do this only as a last resort, look into 403b loans as an alternative

be wary of the fidelity advisor unless ur paying them by the hour

I have no plans of staying at this job so loan won’t work. Just got married, wife’s in school. Lowering our income, adding a kid. Taxes shouldn’t be that bad next year.

Already know what they’ll advise and its free through my employer so just want to hear them out

 

[Michael's Black Son]

Ultimately if you need the money then take it. It’s yours. What are you other alternatives aside from robbing a bank or accruing more debt?

 

[Youngdev]

I ain’t even gonna front being able to take a loan out of my retirement done saved my ass a few times

With straight withdrawals you have to have a hardship or quit for my plan

 

[WIA20XX]

Have a 403B account with $40,000 in it. Have an annoying amount debt and baby on the way. Not struggling or anything but my life would be so much easier if I could pay off my car note ($18,000) and CC balance ($10,000). Only debt besides student loans which, I don’t give a fukk about and my wife's new car which she pays the majority. Is it worth it to pull from retirement? I know I’ll get 10% penalty and add taxes from more income.

After the baby is born and I’m leaving this job anyway. Just staying now for scheduling flexibility, have a ton of PTO, and want to keep wife on coverage until after delivery. Im an RN make little over $100,00 in Houston

And I’m truly skeptical if I’ll ever truly be able to retire the way America is currently going

Got a meeting with fidelity person a work next week.
Just wanted regular coli breh opinion

Obviously, you'll take the tax hit, but more importantly you're missing out on 10-30 years of gains.

If you're grossing 100, prolly taking home between 60-70 - 5-6k a month. The CC balance is a no brainer, don't spend retirement funds on that.

With the car? Throwing good retirement money at a depreciating asset is not the move. If you got some equity in the car, better to downsize.

I don't see any real point in doing this at all.

If you're just running up credit as is, you'll just do it again.

None of this money you're trying to erase is being deployed strategically.

Do you have a house? If not, that is a better idea.

If you do have a house, building an ADU - additional dwelling unit on your property - i.e. build a 1br in the backyard - and use that 403B to buy an asset. (you might even be able to use that money tax free, if you structure it properly, see your tax advisor)

If you're clearing a 100k, but you got mouths to feed - it's really about deploying your money in ways that bring in cash flow, not just appreciate. IMO.

You could obviously do RE.
You could teach nursing online.
Take your RN skills, and start a home health care business, on and on and on.

But using retirement money for essentially consumer debt? Just say no.

 

[Dreamchaser]

Sell the cars and buy something used with cash in order to clear those debts. Don't take out money from your retirement.

 

[Arizax2]

The only time I digged into my 401k was when I baught my house. The fee wasn't too bad and I been paid the whole thing back. Pulling the money to buy the house was one of the exceptions that allowed me to do it. Honestly wouldn't do it again tho.

I know people on here hate Dave Ramsey but his baby step plans are good for folks that needs to get out of debt. It's pretty much: stop all investments, save $1,000, work to pay off the smallest debt first while paying the minimum on the other debts and continue paying the smallest to largest using the snowball method. Once your debt free other than your house, you grow your emergency fund to 6 months of expenses. Once you do that you start investing 15% of your salary while working to tacking your mortgage. It's a set principle for folks that need structure. The feeling of being debt free is amazing. I fell back a bit but I'm back on track now following the method.

 

[Sad Bunny]

Wait, if you make more than 100,000 I don’t see why you would have to cash out your retirement especially if you have a girl/wife who also makes money

Based on everything, you told me, you are clearly struggling if you have to pull from retirement to pay off debt

 

[djthegreat88]

Wait, if you make more than 100,000 I don’t see why you would have to cash out your retirement especially if you have a girl/wife who also makes money

Based on everything, you told me, you are clearly struggling if you have to pull from retirement to pay off debt

Not struggling really. No problem paying bills and have disposable income. Alot of life changes events recently. Clearing one of these debts would just help tremendously. I’m being impatient more than anything.

 

[Sad Bunny]

Not struggling really. No problem paying bills and have disposable income. Alot of life changes events recently. Clearing one of these debts would just help tremendously. I’m being impatient more than anything.

Try to be patient I was in the same position before. It really depends on your disposable income and how fast you can pay everything off but I follow the Dave Ramsey plan put my back against the wall and every time I got paid I threw everything I could at the debt. It sucks because it just feels like you’re living to pay debt but once it’s gone, you’re going to feel so free. I just don’t think you should sacrifice sacrifice your retirement because it will grow exponentially once you get closer to $100,000 invested

 

[Mac Brown]

@djthegreat88

Whats up houston breh, just curious, why do you want to leave your job. Thats a decent salary here.

 

[kevm3]

Have a 403B account with $40,000 in it. Have an annoying amount debt and baby on the way. Not struggling or anything but my life would be so much easier if I could pay off my car note ($18,000) and CC balance ($10,000). Only debt besides student loans which, I don’t give a fukk about and my wife's new car which she pays the majority. Is it worth it to pull from retirement? I know I’ll get 10% penalty and add taxes from more income.

After the baby is born and I’m leaving this job anyway. Just staying now for scheduling flexibility, have a ton of PTO, and want to keep wife on coverage until after delivery. Im an RN make little over $100,00 in Houston

And I’m truly skeptical if I’ll ever truly be able to retire the way America is currently going

Got a meeting with fidelity person a work next week.
Just wanted regular coli breh opinion

If you have a high interest rate, then yea, it will make sense to pay off that debt. If your CC interest rate is like 20%, you need to pay that off asap. There's no way you will be getting 20% annual returns on your investment.

 

[BlueHeffner]

Id do it as long as you are 110% certain you arent going to just charge your cards up again


Not to sound morbid, but you dont even know you are gonna live to see retirement


Living comfortably and enjoying life while youre young >>>>>>>>>

 

[djthegreat88]

@djthegreat88

Whats up houston breh, just curious, why do you want to leave your job. Thats a decent salary here.

Be closer to home. Living near Spring and work in Med center. Takes me over an hour to get to work mist days. Also an ICU nurse and want to do different specialty. Slowly getting burnt out as bedside nurse

 

[Booker Carver]

Do you own your home? Any equity? You can get a HELOC and consolidate that debt with a much lower payment.

 

[djthegreat88]

Do you own your home? Any equity? You can get a HELOC and consolidate that debt with a much lower payment.

No which is another reason why i need some of this debt gone. DTI is too high