I have plan which will lapse 50% distinction in dual years time frame. I know which I will get hite by during slightest 30%. Help!!
- What are some investment tips for a 401K account? (5)
- I’m An LLC and have made some profit on top of a salary. Should I reinvest some/all profit or do i take bonus? (3)
- Is it wise to invest money with an investment Bank to make profit off your investment? (1)
- 401K Stock Protection: Investment firms must have something like this in place.? (6)
- I think oil prices will go higher in the next year. What’s the best investment to take advantage of this? (4)
- Are Barbie dolls a wise investment? (3)
- How does investment in real estate work ? you buy a house or land, keep it and then sell it later with some? (5)
- I’m in college and was wondering what investment options I could take that would be low risk and low cost? (4)
- How and Can I make a profit on some semi-inside information on investment advice on the OIL? (3)
- What stocks will be a wise investment to hold long term? (4)
- My wife wants to quit her job in a private investment brokers firm, can she take a profit sharing 401? (3)
- Latest Stock Market Updations for Wise Investment (0)
- Open an investment company – How to take the profits -? (2)
- Business News Assists in Making Wise Investment Decisions (0)
- Bally Shoes Are A Trully Wise And Creative Investment (0)
- Real Estate Investment for the Wise Filipino (0)
- What is the best way to take title to investment real estate? (2)
- advise me some good investment plans which can give maximum profit in a period of 5-6 years.? (3)
- What would be a wise investment in hardware for a profit in two weeks? (1)
- Some Tips for the Home Finance Real Estate Investment (0)
Tagged as: 401k, Investment, Some, take, wise
{ 6 comments… read them below or add one }
You are better off taking a loan out than withdrawing from your 401K.
On a loan you have a longer time frame to pay it back.
The taxes on a withrawl from 401K, as well as the potential profit loss because of the it, is not worth it.
No, it’s not smart. The only time you should take out from your 401(k) is to mitigate the damage from an emergency.
Most 401K’s allow you to borrow from them. Most will only let you borrow 50% of what you have contributed and pay back at a reasonable interest rate. A few 401K’s actually take the interest you’re paying on your loan and invest that as your money too. So, in essence, you are your own bank and making money on yourself.
10% penalty plus taxes…so, yeah, at least 30% penalty.
Project returns 50%….which will be taxable, right? So, if you are in 25% bracket, you lose 25% of your return…so, now you are down to a net gain of 37 1/2%.
So, it costs 30% to access your money to make a 37 1/2% return….
therefore…
you net 7 1/2% return. My guess is….you stand a decent chance of making 7 1/2% INSIDE the 401/k and saving yourself all the hassle of moving the $$ around.
No, once you start you won’t stop and your retirement will be screwed.
I did it. I regret it. Don’t do it.
(BTW: What returns 50% profit in 2 years??????)