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Its never good to take from a retirement fund. Why would you just not want to have some liquid cash lying around? Your first thought is to take from a retirement fund isn't good.
Its never good to take from a retirement fund. Why would you just not want to have some liquid cash lying around? Your first thought is to take from a retirement fund isn't good.
Because keeping liquid cash is losing money. I would rather see it grow over a modest 6% YoY, than see it rotting in a bank account. One doesn't have to invest it in retirement fund, it just needs to be invested, otherwise the net worth will decay.
Because keeping liquid cash is losing money. I would rather see it grow over a modest 6% YoY, than see it rotting in a bank account. One doesn't have to invest it in retirement fund, it just needs to be invested, otherwise the net worth will decay.
Agreed. Yet you said if you needed money you would take a 401k loan. Put liquid cash somewhere where it can grow and use that for an emergency. Don't screw with your retirement is all I'm getting at.
Agreed. Yet you said if you needed money you would take a 401k loan. Put liquid cash somewhere where it can grow and use that for an emergency. Don't screw with your retirement is all I'm getting at.
I put it in my retirement fund because for me, it grew manifold, since my employer was matching my contribution 100% for the first 5% and 50% for the remaining 5%. It worked for me and might not work for everyone. Nevertheless, I would argue that investing in 401k is still better than keeping it in the bank.
Oh I never said I don't work hard that was I guess an assumption made by you because I can admit to not having 100k in a bank somewhere and still be happy? You know what they say happens when you assume.... And by the way I provide for my children all their needs..and alot of their wants!! My mentality was attacked simply because my admitting to being poor by the 100k measure?
No, your mentality was attacked because it came through loud and clear that you think badly of anyone who desires to build wealth over time (per your "stomach turning" comment). While the poster who responded to you made some inaccurate assumptions about you, you also have also done the same regarding people who desire wealth.
If you don't like being attacked, maybe you shouldn't be so quick to attack other people yourself. Time to look in the mirror
I put it in my retirement fund because for me, it grew manifold, since my employer was matching my contribution 100% for the first 5% and 50% for the remaining 5%. It worked for me and might not work for everyone. Nevertheless, I would argue that investing in 401k is still better than keeping it in the bank.
I never said an emergency fund should just be cash in a bank account. You only have $5000 of accessible funds that don't come along with huge tax and early withdrawal penalties.
Your 401K is absolutely the WRONG place to save your emergency funds.
Did you ever think about opening up a standard investment account where you may only have to pay long term capital gains instead of income tax on a 401K withdrawal?
Did you ever think about opening up a ROTH IRA where you can withdraw your contributions tax free and without penalty?
I never said an emergency fund should just be cash in a bank account. You only have $5000 of accessible funds that don't come along with huge tax and early withdrawal penalties.
Your 401K is absolutely the WRONG place to save your emergency funds.
Did you ever think about opening up a standard investment account where you may only have to pay long term capital gains instead of income tax on a 401K withdrawal?
Did you ever think about opening up a ROTH IRA where you can withdraw your contributions tax free and without penalty?
Look, both Roth IRA and standard investment accounts are a good idea but it was not right for me at my previous employer with generous matches to 401(K). In case you're wondering, employers contribute to 401(K) but not to IRAs.
My point was that you paid your car off before funding an emergency account.
Of course I know that employers contribute to 401Ks... that's why I had twice as much as you did at the age of 30 in my 401K... and I still contributed to a ROTH and Fidelity Brokerage account.
Your decision to pay off your entry level BMW, present it as part of your net worth, and disregard other savings vehicles shows how flawed your personal finance strategy is.
I had to pay off my car because I needed to get a mortgage loan and my credit history in this country is only 6 years old. I'm an immigrant and there are certain things I need to do differently. I'm still doing quite well, thank you very much!
You're the one comparing schlongs here, not me!
All I'm saying is that, since my car is paid off, I can use the money that I will save and invest it in the market.
I had to pay off my car because I needed to get a mortgage loan and my credit history in this country is only 6 years old. I'm an immigrant and there are certain things I need to do differently. I'm still doing quite well, thank you very much!
You're the one comparing schlongs here, not me!
All I'm saying is that, since my car is paid off, I can use the money that I will save and invest it in the market.
Hmm.. well I guess my deletion didn't happen until AFTER you saw it
Quote:
"You're the one comparing schlongs here, not me!"
Umm.. the whole reason you even joined this thread was to brag about your "$167K" of net worth.
What was that about comparing schlongs? Nice try though!
In any case, I agree you are doing well... but it's obviously gotten to your head.
Hmm.. well I guess my deletion didn't happen until AFTER you saw it
Yep, gotcha! (j/k)
Quote:
Originally Posted by volk2k
Umm.. the whole reason you even joined this thread was to brag about your "$167K" of net worth.
What was that about comparing schlongs? Nice try though!
In any case, I agree you are doing well... but it's obviously gotten to your head.
Good luck!
No no, you misread me. I joined the personal finance forum to get ideas for investing and increasing my wealth with my disposable income, now that I have completed a house purchase. And in that process I replied in a thread about my net worth, to get an idea on where I am, in the percentile level, which was the point of this thread. You however, bragged about your maximum contributions and yet investing in a Roth 401k and having investment accounts. So, i was trying to get a sense of where I stand while you were comparing schlongs.
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