Please explain 401k?

You don’t have to pay any penalty on a 401k when you leave a company. Sometimes you can roll it over into your new companies 401k or into an IRA. No need to cash it out when you get fired or quit.

 

Average credit cards have between a 10-30% APR.

 

You pay taxes and penalties when you quit if you have taken out a 401k loan. It becomes due in full immediately upon the end of your employment. You can roll your 401k into an IRA, but you can’t touch the money until you reach retirement age, without massive penalties.

 

Right. As mentioned, keep your cotton pickin' fingers off your retirement funds. "Borrowing" from your 401(K) is NOT an exception.

If you don't have the money to pay cash, you can't afford it.

 

Never too early to start with retirement savings,smart on your part. I don't know if it's been mentioned,but at age 70 1/2 you have to make some govt. required withdrawals from a 401k. Probably not an issue with most here,but it should be mentioned for planning. My wife has a very healthy 401 she's never touched,from her long career in business banking,and we are rapidly approaching this issue. Good problem to have I guess.

 

The 401(k) sucks.

 

Thanks for clarifying. I'm sitting here thinking, who the hell takes out a mortgage at 10% much less 30.

 

My 401k is managed by lincoln financial, I'm contributing 10%, my company matches 100% up to4% we are vested after 1year of service. I'm setup in a moderately aggressive investment program that over the past 5years has a return of 12.7%, not spectacular returns, but fairly decent considering the markets before November 2016. According to the calculator on the website just basedon a moderate 7% return i should be able to retire in 2030 and receive $5700 a month until it's dry. Considering I'll only be 52 in 2030, i think i'll be ok, i'll still have another 15years or so to contribute. And if by some magical chance social security is still around when I'm officially able to draw...well i think ill be just fine.

 

We have done very cautious buying and holding and selling at a profit.

We recall picking up 2000 dollars in shares for a power company on the market at about 9.00 a share. Eventually it came out to 31.00 a share and we sold for a small gain. Something like 6200 dollar check off 2000 in 6 months.

This was back in the early 2000's we were tempted again to purchase when the prices fell again from the 31.00 But held off.

 

Please elucidate. Not everyone here is as intellectually gifted as you....