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GabbaDj
BTH



Registered: 04/08/01
Posts: 19,679
Loc: By The Lake
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Help Me With My 401K
#14646634 - 06/21/11 02:08 AM (12 years, 7 months ago) |
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I want to close it out and invest the money myself.
More to come.. I just want to first hear stores, good or bad.
-------------------- GabbaDj FAMM.ORG
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,372
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Re: Help Me With My 401K [Re: GabbaDj]
#14647397 - 06/21/11 09:04 AM (12 years, 7 months ago) |
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Many times there is a penalty for closing them out, and/or you'll incur taxes.
If you are matched, you should strongly consider at least contributing what you're maxed.
Also, just do the basic math and make sure it's worth it. For example, my 401k is matched dollar-for-dollar (up to 5k), and contributions are pre-taxed. I'm taxed at something like 25%. Thus, my choices are as follows:
For every $100 I GROSS, I can,
Invest $75 into a fund and take on risk,
Or put $200 in my 401k.
All in all, my 401k gives me a 125% return. No risk. So for me, I know of no other investment that comes close to that. So just do math. Other than that, it should be as simple as closing it out. But make sure you're aware of penalties and taxes. Probably a better bet to just stop contributions.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 7 minutes, 27 seconds
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Re: Help Me With My 401K [Re: GabbaDj]
#14647634 - 06/21/11 10:19 AM (12 years, 7 months ago) |
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badchad is right on the money. If your employer matches your contributions, stick with it, it's free money. Investing on your own may seem easy, but it's usually not, there are no guarantees, it can be time consuming and often frustrating. If your employer does not match your 401k contributions and has a limited selection of funds into which you may direct your money, a self-directed Roth IRA would indeed be a good choice.
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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GabbaDj
BTH



Registered: 04/08/01
Posts: 19,679
Loc: By The Lake
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Re: Help Me With My 401K [Re: geokills]
#14648533 - 06/21/11 01:27 PM (12 years, 7 months ago) |
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Eeeh.. I went with a loan against my 401K.. When researching Fidelity online it says I have to pay interest on a loan just to get my own money out. It turns out that 100% of the interest goes back to me, so I'm just paying myself and @ 4.2%, it's not soo bad.
I'm moving in a few months and this will be my last 4th of July in California so I'm going out with a bang. Literally, I'm going to buy $1,000 in fireworks and $500 in food and throw my biggest bash yet.
-------------------- GabbaDj FAMM.ORG
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 7 minutes, 27 seconds
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Re: Help Me With My 401K [Re: GabbaDj]
#14657723 - 06/23/11 01:53 AM (12 years, 7 months ago) |
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So where's the party at?
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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GI_Luvmoney
Vote Republican!


Registered: 05/10/09
Posts: 939
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Re: Help Me With My 401K [Re: GabbaDj]
#14666374 - 06/24/11 04:21 PM (12 years, 7 months ago) |
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You can move it to a rollover IRA.
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