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Spoke to a lawyer today. .. actually a neighbor who is going to help me out.
He agreed that the 401k is protected money. If I need to declare bankruptcy it wont be touched. He suggested I borrow money against it and buy a house in a homestead state. He suggests I could do this now and just walk away from the apt. He felt it was better to do it later when I owe as much as possible. He did say that my credit cards should be used for necessities just in case the court looks back.
He made me feel better because the whole thing is planned out.
Spoke to a lawyer today. .. actually a neighbor who is going to help me out.
He agreed that the 401k is protected money. If I need to declare bankruptcy it wont be touched. He suggested I borrow money against it and buy a house in a homestead state. He suggests I could do this now and just walk away from the apt. He felt it was better to do it later when I owe as much as possible. He did say that my credit cards should be used for necessities just in case the court looks back.
He made me feel better because the whole thing is planned out.
You have enough in your 401K to buy a house outright but can’t pay your rent? Where are you going to buy?
Spoke to a lawyer today. .. actually a neighbor who is going to help me out.
He agreed that the 401k is protected money. If I need to declare bankruptcy it wont be touched. He suggested I borrow money against it and buy a house in a homestead state. He suggests I could do this now and just walk away from the apt. He felt it was better to do it later when I owe as much as possible. He did say that my credit cards should be used for necessities just in case the court looks back.
He made me feel better because the whole thing is planned out.
borrow money against it ???? you can't borrow against a 401k if you don't work for the company ... you would have to pay taxes if you dont pay it back which unless you have the money outside the 401k, just forces you to take more out of the 401k to pay taxes which forces you to take more out of the 401k and round and round we go.
you could roll it over to an ira if you are not working for the company but there are no ira loans . it is taxed like not paying back the 401k if you pull money out .
you would need a good credit score to get a mortgage . plus you cannot borrow against the 401k since the bank can't take it , if you don't pay ....
Spoke to a lawyer today. .. actually a neighbor who is going to help me out.
He agreed that the 401k is protected money. If I need to declare bankruptcy it wont be touched. He suggested I borrow money against it and buy a house in a homestead state. He suggests I could do this now and just walk away from the apt. He felt it was better to do it later when I owe as much as possible. He did say that my credit cards should be used for necessities just in case the court looks back.
He made me feel better because the whole thing is planned out.
You contacted an attorney for financial advice? Do you also call a plumber for your electrical work?
borrow money against it ???? you can't borrow against a 401k if you don't work for the company ... you would have to pay taxes if you dont pay it back which unless you have the money outside the 401k, just forces you to take more out of the 401k to pay taxes which forces you to take more out of the 401k and round and round we go.
you could roll it over to an ira if you are not working for the company but there are no ira loans . it is taxed like not paying back the 401k if you pull money out .
you would need a good credit score to get a mortgage . plus you cannot borrow against the 401k since the bank can't take it , if you don't pay ....
basically your friend is not up on finance
You took the words right out of my mouth. Sorry, I am getting to the point here where if idiots want to do stupid stuff we need to sit back and watch the carnage.
The 401k remains in fidelity in the employer's plan. I just got fired from. I worked in the same place for years. It has been my only savings.
The problem is I have three years to pay back and its limited to 100g. The answer is Austin.
It's a tax issue more than anything. I could buy three or four or five houses on li outright after taxes with the balance. No I am not paying rent with protected money.
Covid just triggered my early retirement while this is good because I know of folks who never made it to retirement or they had to retire because of illness and then ran out of money.
My money is wrapped up in wealth. I am not going to run out in my lifetime because I have enough saved and because I will only tap it for value.
The 401k remains in fidelity in the employer's plan. I just got fired from. I worked in the same place for years. It has been my only savings.
The problem is I have three years to pay back and its limited to 100g. The answer is Austin.
It's a tax issue more than anything. I could buy three or four or five houses on li outright after taxes with the balance. No I am not paying rent with protected money.
Covid just triggered my early retirement while this is good because I know of folks who never made it to retirement or they had to retire because of illness and then ran out of money.
My money is wrapped up in wealth. I am not going to run out in my lifetime because I have enough saved and because I will only tap it for value.
What kind of a house are you going to buy in Austin for $100K?
So if I do some basic math, and assume you don't want to buy in CI and aren't trolling, you have somewhere around $3-4M in your 401K?
If that's the case I doubt you'll find any sympathy here about not paying your several thousand a month in rent. Why aren't you a homeowner now?
The 401k remains in fidelity in the employer's plan. I just got fired from. I worked in the same place for years. It has been my only savings.
The problem is I have three years to pay back and its limited to 100g. The answer is Austin.
It's a tax issue more than anything. I could buy three or four or five houses on li outright after taxes with the balance. No I am not paying rent with protected money.
Covid just triggered my early retirement while this is good because I know of folks who never made it to retirement or they had to retire because of illness and then ran out of money.
My money is wrapped up in wealth. I am not going to run out in my lifetime because I have enough saved and because I will only tap it for value.
So you don't mind screwing your landlord over, even though you have no financial hardship -- just because you can. Nice guy.
This thread is very amusing to say the least and we have a not so bright light bulb in the tanning bed responding. LOL.
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