401k thoughts

[bittyhorse23]

I have a 401k at my work but I am starting to think I don't need one. I know it is good to plan for retirement but I also know I won't live to retirement age. So should I keep plugging away at putting money in my account even though I will have to withdrawal it early or should I take that $160 a month and spend it on something else like bills?

Does anyone else on here with CF have an account and if so, what are your reasonings?

Thanks!

 

[bittyhorse23]

I have a 401k at my work but I am starting to think I don't need one. I know it is good to plan for retirement but I also know I won't live to retirement age. So should I keep plugging away at putting money in my account even though I will have to withdrawal it early or should I take that $160 a month and spend it on something else like bills?

Does anyone else on here with CF have an account and if so, what are your reasonings?

Thanks!

 

[bittyhorse23]

I have a 401k at my work but I am starting to think I don't need one. I know it is good to plan for retirement but I also know I won't live to retirement age. So should I keep plugging away at putting money in my account even though I will have to withdrawal it early or should I take that $160 a month and spend it on something else like bills?

Does anyone else on here with CF have an account and if so, what are your reasonings?

Thanks!

 

[bittyhorse23]

I have a 401k at my work but I am starting to think I don't need one. I know it is good to plan for retirement but I also know I won't live to retirement age. So should I keep plugging away at putting money in my account even though I will have to withdrawal it early or should I take that $160 a month and spend it on something else like bills?

Does anyone else on here with CF have an account and if so, what are your reasonings?

Thanks!

 

[bittyhorse23]

I have a 401k at my work but I am starting to think I don't need one. I know it is good to plan for retirement but I also know I won't live to retirement age. So should I keep plugging away at putting money in my account even though I will have to withdrawal it early or should I take that $160 a month and spend it on something else like bills?

Does anyone else on here with CF have an account and if so, what are your reasonings?

Thanks!

 

[cf4life]

I always wondered this too; however, I always put as much as I could in my 401k. When I was single I figured it would a gift for my parents or brother after I died. Now that I am married it would go to my wife. I do believe you can also withdraw early for medical hardship if needed.

 

[cf4life]

I always wondered this too; however, I always put as much as I could in my 401k. When I was single I figured it would a gift for my parents or brother after I died. Now that I am married it would go to my wife. I do believe you can also withdraw early for medical hardship if needed.

 

[cf4life]

I always wondered this too; however, I always put as much as I could in my 401k. When I was single I figured it would a gift for my parents or brother after I died. Now that I am married it would go to my wife. I do believe you can also withdraw early for medical hardship if needed.

 

[cf4life]

I always wondered this too; however, I always put as much as I could in my 401k. When I was single I figured it would a gift for my parents or brother after I died. Now that I am married it would go to my wife. I do believe you can also withdraw early for medical hardship if needed.

 

[cf4life]

I always wondered this too; however, I always put as much as I could in my 401k. When I was single I figured it would a gift for my parents or brother after I died. Now that I am married it would go to my wife. I do believe you can also withdraw early for medical hardship if needed.

 

[LisaV]

If your workplace matches a certain percentage then that might influence your decision too. 1) you don't pay taxes on what you put away, 2) Your savings increases by the matched percentage with no extra effort on your part, 3) You can pull it for certain hardship things (have to pay taxes then), 4) You can easily cash it in (paying taxes) if you leave that job-or transfer it, 5) it is a sort of a self-life-insurance thing, 6) you can borrow on it for cars and such at a good rate (check to see how much and how many loans you can have on it at once and what happens with that if you leave the present job), 7) you might need it when you retire (cause my late husband was only 3 years shy of 62 when he died, you guys could darn well end up retired)

 

[LisaV]

If your workplace matches a certain percentage then that might influence your decision too. 1) you don't pay taxes on what you put away, 2) Your savings increases by the matched percentage with no extra effort on your part, 3) You can pull it for certain hardship things (have to pay taxes then), 4) You can easily cash it in (paying taxes) if you leave that job-or transfer it, 5) it is a sort of a self-life-insurance thing, 6) you can borrow on it for cars and such at a good rate (check to see how much and how many loans you can have on it at once and what happens with that if you leave the present job), 7) you might need it when you retire (cause my late husband was only 3 years shy of 62 when he died, you guys could darn well end up retired)

 

[LisaV]

If your workplace matches a certain percentage then that might influence your decision too. 1) you don't pay taxes on what you put away, 2) Your savings increases by the matched percentage with no extra effort on your part, 3) You can pull it for certain hardship things (have to pay taxes then), 4) You can easily cash it in (paying taxes) if you leave that job-or transfer it, 5) it is a sort of a self-life-insurance thing, 6) you can borrow on it for cars and such at a good rate (check to see how much and how many loans you can have on it at once and what happens with that if you leave the present job), 7) you might need it when you retire (cause my late husband was only 3 years shy of 62 when he died, you guys could darn well end up retired)

 

[LisaV]

If your workplace matches a certain percentage then that might influence your decision too. 1) you don't pay taxes on what you put away, 2) Your savings increases by the matched percentage with no extra effort on your part, 3) You can pull it for certain hardship things (have to pay taxes then), 4) You can easily cash it in (paying taxes) if you leave that job-or transfer it, 5) it is a sort of a self-life-insurance thing, 6) you can borrow on it for cars and such at a good rate (check to see how much and how many loans you can have on it at once and what happens with that if you leave the present job), 7) you might need it when you retire (cause my late husband was only 3 years shy of 62 when he died, you guys could darn well end up retired)

 

[LisaV]

If your workplace matches a certain percentage then that might influence your decision too. 1) you don't pay taxes on what you put away, 2) Your savings increases by the matched percentage with no extra effort on your part, 3) You can pull it for certain hardship things (have to pay taxes then), 4) You can easily cash it in (paying taxes) if you leave that job-or transfer it, 5) it is a sort of a self-life-insurance thing, 6) you can borrow on it for cars and such at a good rate (check to see how much and how many loans you can have on it at once and what happens with that if you leave the present job), 7) you might need it when you retire (cause my late husband was only 3 years shy of 62 when he died, you guys could darn well end up retired)

 

[folione]

It is a personal decision, but try thinking about it this way: You have 3 choices for what to do with your money:
1. Spend it (or give it away)
2. Save it in liquid/near-liquid vehicles (i.e. savings, money funds, stocks)
3. Save it in designated retirement vehicles.

The most restrictive is #3 because it limits your ability to have use of the money. It is not completely illiquid, but the hoops and penalties to get the money before retirement might be a pain. But the benefits in terms of immediate gains via employer match or tax savings, etc. might make it worth the trouble.

#1 is what you do with money you need (be sure you are honest with yourself about defining "need" versus "want") and if you're having to borrow money for normal needs, you might be saving too much.

#2 is something we all should have to help with spikes or surprises in living costs, such as a big repair bill or whatever.

Your employer's 401k documentation should spell out their rules for "hardship" distributions and also for loans (they're not the same thing). IRS has info on this stuff at their website under the "retirement plans" section...

 

[folione]

It is a personal decision, but try thinking about it this way: You have 3 choices for what to do with your money:
1. Spend it (or give it away)
2. Save it in liquid/near-liquid vehicles (i.e. savings, money funds, stocks)
3. Save it in designated retirement vehicles.

The most restrictive is #3 because it limits your ability to have use of the money. It is not completely illiquid, but the hoops and penalties to get the money before retirement might be a pain. But the benefits in terms of immediate gains via employer match or tax savings, etc. might make it worth the trouble.

#1 is what you do with money you need (be sure you are honest with yourself about defining "need" versus "want") and if you're having to borrow money for normal needs, you might be saving too much.

#2 is something we all should have to help with spikes or surprises in living costs, such as a big repair bill or whatever.

Your employer's 401k documentation should spell out their rules for "hardship" distributions and also for loans (they're not the same thing). IRS has info on this stuff at their website under the "retirement plans" section...

 

[folione]

It is a personal decision, but try thinking about it this way: You have 3 choices for what to do with your money:
1. Spend it (or give it away)
2. Save it in liquid/near-liquid vehicles (i.e. savings, money funds, stocks)
3. Save it in designated retirement vehicles.

The most restrictive is #3 because it limits your ability to have use of the money. It is not completely illiquid, but the hoops and penalties to get the money before retirement might be a pain. But the benefits in terms of immediate gains via employer match or tax savings, etc. might make it worth the trouble.

#1 is what you do with money you need (be sure you are honest with yourself about defining "need" versus "want") and if you're having to borrow money for normal needs, you might be saving too much.

#2 is something we all should have to help with spikes or surprises in living costs, such as a big repair bill or whatever.

Your employer's 401k documentation should spell out their rules for "hardship" distributions and also for loans (they're not the same thing). IRS has info on this stuff at their website under the "retirement plans" section...

 

[folione]

It is a personal decision, but try thinking about it this way: You have 3 choices for what to do with your money:
1. Spend it (or give it away)
2. Save it in liquid/near-liquid vehicles (i.e. savings, money funds, stocks)
3. Save it in designated retirement vehicles.

The most restrictive is #3 because it limits your ability to have use of the money. It is not completely illiquid, but the hoops and penalties to get the money before retirement might be a pain. But the benefits in terms of immediate gains via employer match or tax savings, etc. might make it worth the trouble.

#1 is what you do with money you need (be sure you are honest with yourself about defining "need" versus "want") and if you're having to borrow money for normal needs, you might be saving too much.

#2 is something we all should have to help with spikes or surprises in living costs, such as a big repair bill or whatever.

Your employer's 401k documentation should spell out their rules for "hardship" distributions and also for loans (they're not the same thing). IRS has info on this stuff at their website under the "retirement plans" section...

 

[folione]

It is a personal decision, but try thinking about it this way: You have 3 choices for what to do with your money:
1. Spend it (or give it away)
2. Save it in liquid/near-liquid vehicles (i.e. savings, money funds, stocks)
3. Save it in designated retirement vehicles.

The most restrictive is #3 because it limits your ability to have use of the money. It is not completely illiquid, but the hoops and penalties to get the money before retirement might be a pain. But the benefits in terms of immediate gains via employer match or tax savings, etc. might make it worth the trouble.

#1 is what you do with money you need (be sure you are honest with yourself about defining "need" versus "want") and if you're having to borrow money for normal needs, you might be saving too much.

#2 is something we all should have to help with spikes or surprises in living costs, such as a big repair bill or whatever.

Your employer's 401k documentation should spell out their rules for "hardship" distributions and also for loans (they're not the same thing). IRS has info on this stuff at their website under the "retirement plans" section...