Hi!
I have a fun question for anyone interested in stirring this one about...
I have participated in the 401K investing plan that was offered by my employer for 10 years. I have a nice little nest egg in it now. We were informed last Friday that, Ta Dah! This company no longer exists. Lucky for many of us, we were absorbed into a 'New Venture' that consists of the old owners, (My former employer) and the new owners (US Concrete) having a 40- 60% interest (respectively) in the new company, a privately held firm known as Superior Materials LLC.
The memo read: You can keep your 401K in the funds you now have, but you cannot add to it anymore. (I knew that)
You can take a lump sum (with a 20% hit for taxes)
You can roll it into the 'New 401k, if they offer one.
You can roll it into an IRA

I want to pay off debt. I see this as an opportunity to do just that. I see many of you screaming at your monitor, right now. "NOOoooOOO!"

Yet...

My wife has about the same money in her 401k, and a longer timeline then I. (she won't see 59.5 years for another 17.5 years)
we are considering taking the tax and penalty hit, to be debt free. We would still owe on our house (tax shelter) and cars (lease)
But no loan or credit card debt.) (Please resist the "you'll run it back up" argument) :-)

I would like to begin investing, without the short term liability's hanging around my neck (aka: credit cards, loans) I would still have a nice chunk of change after the tax and 10% penalty hit. For investing in the long term, AND I would be able save, and pour money into the NEW
401k plan.


Thoughts?


Thanks!