UnThreaded | Threaded | Whole Thread (54) | Ignore Thread Prev | Next
Author: foolazis Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76392  
Subject: Re: Company SOLD!! - My 401K !!? Date: 4/3/2007 8:56 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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.


When investing for retirment, the compounding time is your biggest ally. The money you have contributed already has already been compounding. If you cash in, not only are you contributing about 35% (maybe more, depending on tax bracket) to Uncle Sam (federal and state taxes, plus 10% penalty), but you are also starting the clock all over on the compounding. Even if you reinvest every remaining penny, you will have taken a large chunk out of the earnings which can be compounding for you to give to the government.

It's your money, but think long and hard about this. Personally, if I was in your position, I would roll it into an IRA and pay my debt using my current cash flow. But that's just me.

foolazis
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (54) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement