life without retirement savings

JVII said:
Never opened up a 401k since the company I work for doesn't match **** lol

Should I start one anyway? All I have is an IRA so far.
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Bruh that sucks..

I'd start one with a small contribution ..but def max ur IRA
 
County matches up to 4%, i’m at 10% right now ... and we can invest in stocks my boy was showing me his account and has $500K in his 401K already :wow:
 
I’m so far behind. I’m about to gut my 401k to pay off my car note. I’m only at 9k right now. Don’t care about the tax penalty...need to get out of this sort of debt ASAP for mental reasons.

I was at 24k credit card debt and 13k car note in Jan 2015. Down to 4.3k card and 8.5k note. Goal is to have Card paid off by end of May. Will let the good effects filter through to my credit score. Refinance massive student loan debt down to 2.9% (saving 60k in the long run) and then pay off the car note with a 401k distribution.

2019 I’ll go with 10% into the 401k and another 15% into my individual investing Betterment account monthly. Never going to allow myself to fall into that debt trap.
 
Get that money into your Roth.

Once you start making over $120k you can no longer contribute the full max ($5.500 a year) and it phases to $0.00 once you hit $135k income. Roth is great cause you don’t have to pay taxes on your earnings and can buy individual stocks.

antidope antidope did you mention there was an easy way to skirt the income limit threshold for a Roth?
 
moderndarwin said:
I’m so far behind. I’m about to gut my 401k to pay off my car note. I’m only at 9k right now. Don’t care about the tax penalty...need to get out of this sort of debt ASAP for mental reasons.

I was at 24k credit card debt and 13k car note in Jan 2015. Down to 4.3k card and 8.5k note. Goal is to have Card paid off by end of May. Will let the good effects filter through to my credit score. Refinance massive student loan debt down to 2.9% (saving 60k in the long run) and then pay off the car note with a 401k distribution.

2019 I’ll go with 10% into the 401k and another 15% into my individual investing Betterment account monthly. Never going to allow myself to fall into that debt trap.
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Is your car worth more than what you own on it? If so you gutting your 401k and being penalized and losing interest on your investment might not be the best alternative. How high is your car loan interest rate?
 
Chopper said:
Get that money into your Roth.

Once you start making over $120k you can no longer contribute the full max ($5.500 a year) and it phases to $0.00 once you hit $135k income. Roth is great cause you don’t have to pay taxes on your earnings and can buy individual stocks.

antidope antidope did you mention there was an easy way to skirt the income limit threshold for a Roth?
Click to expand...
Insanely easy. So easy that the rule shouldnt exist.

Essentially you just max out your traditional IRA and then immediately do a Roth Conversion. Its known as a backdoor Roth.

https://www.rothira.com/what-is-a-backdoor-roth-ira

There are a few nuances to it, like the money you contributed to the Traditional is no longer tax deductible once you convert it to Roth Dollars but its so easy.
 
Bro taking out $ from your 401K to pay a car note does not make sense unless they bout to repo that **** ...
 
Los Angeles said:
Bro taking out $ from your 401K to pay a car note does not make sense unless they bout to repo that **** ...
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Everyone has different circumstances. I took a 10k loan off my retirement savings of about 30k a while ago to pay down all my CCs to 0. So instead of paying 14 to 20% interest. I pay 2.75% and my credit popped into 800 ranges, which allows me more freedom to make moves if I need to. I don't see huge 10% gains happening again this year in the market before a very large overdue correction. Once I see some of that happening I'll re-up my savings from 5% with match to 15-20%. Buy Low. Sell High still applies to savings when dealing with the market IMO.
Everyone always says just keep putting in as much as possible but people who are buying at these high valuations do have potential to lose money in a downturn if they dont watch carefully and move gains to government bonds at the right times. I agree though, an auto loan interest should not be high enough to offset gains from savings in the market
 
I took out all my 401k money when I was 24 lulz

The homie Merrill Lynch kept sending them quarterly statements in the mail until one day I got curious.

"Is this real money tho?"
"Can I take it out or nah?"

.............>D "Gimme"

We'll all be getting universal basic income and healthcare in 25 years anyway. Wtf do you need buy at 67 besides a cottage and cable TV.
 
Instead of cutting your retirement to pay for a car why not sell it to pay off the debt and buy a hooptie to ride in?
 
When I retire I’ll start a go fund me and post on NT. I’m sure all you playas will take care of me :nthat:
 
You are all right about it not making sense financially to use a 401k to pay off a car note.

Im not saying what I’m doing makes sense. It’s a psychological decision. I think the ROI from the mental freedom will push me in other ways. Holistic view of life.
 
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