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thanks steve, but i know what i'm doing. it boggles my mind that people presume ignorance on the part of the actor (as referenced in the blog that "everybody e
by ezl 14y ago
thanks steve, but i know what i'm doing.
it boggles my mind that people presume ignorance on the part of the actor (as referenced in the blog that "everybody else is doing it wrong").
its a deliberate play against my current income that i will report and its not actually a strict withdrawal. 40k and 10% early fee were strictly an example. that's not actually what's going on in my case, but its a lot more digestable and the vanilla case and I'd do it even if that was my situation (I'm doing better than that).
i was a financial professional and think about that sort of stuff.
- steve8918 14y agoYou sounded like you didn't know what you were doing because your description in your blog post was very poor. You mentioned you were doing an early withdrawal, so obviously based on what you wrote, it seemed like you are lacking proper knowledge. All you mentioned was the 10% early withdrawal fees. You also didn't adequately compare your decision with things like taking loans, credit cards, home equity line of credit, etc. Depending on what you expect your cash flow to be, taking short term loans might be a better solution. Maybe you might know better, but based on what you wrote, it sounds like you made an ignorant decision.
- ezl 14y agothank you for your feedback.
- rprasad 14y agoYou might want to check with another financial professional if he told you that withdrawing money from your 401k is not a taxable withdrawal. There are very limited exceptions to the withdrawal penalty, and they are all hardship-based. Launching a startup is not a hardship. Alternatively, if you are doing one of those Roll-into-Business 401ks...well, you have a fool for a financial advisor or you are being taken for a ride.