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Mother effer....got robbed

rudeguy

rudeguy

Lifer
I've been having a rough time of it lately. Work has been really slow and I've had to spend a lot of money on random things that I hadn't planned on. I finally broke down and pulled $1000 out of my 401k to buy some Christmas presents with.

I had just filled up my car with gas when some underweight 12 year old girl ganked my wallet. She must have seen the cash in my wallet when I paid for my gas. Now I'm screwed. No presents for little rudeguy and I'll be paying back $1k for the next year.

/emo
 
My condolences. That truly sucks.

But to be brutally honest, you shouldn't take money out of your 401k for anything except a medical emergency or retirement.
 
Serious? This has the vibe of a poor parody, but if not, I'm sorry to hear that. How does a 12 year old girl get the better of you?
 
rudeguy said:
I've been having a rough time of it lately. Work has been really slow and I've had to spend a lot of money on random things that I hadn't planned on. I finally broke down and pulled $1000 out of my 401k to buy some Christmas presents with.

I had just filled up my car with gas when some underweight 12 year old girl ganked my wallet. She must have seen the cash in my wallet when I paid for my gas. Now I'm screwed. No presents for little rudeguy and I'll be paying back $1k for the next year.

/emo
Click to expand...

That's what you get for going to Wenatchee.
 
soxfan said:
My condolences. That truly sucks.

But to be brutally honest, you shouldn't take money out of your 401k for anything except a medical emergency or retirement.
Click to expand...

What if in addition to using the 401k for retirement, you also use it as your savings account? (Unless, of course, you're maxing out your annual contribution.) i.e. if you would prefer to (keeping the numbers simple) have $1000 in your savings account, why not put that extra $1000 in your 401k account? You'll generally earn a higher interest rate - while it's in there. And, assuming that if you spent the $1000 that was in your savings account, you would gradually build it back up, what's the difference between building it back up and putting it back into your 401k? And, (I don't have a 401k; I have a 403b) isn't the 401k pre-tax dollars? i.e. to have "$1000 in savings", less money would have come out of your pocket.

What am I missing here?
 
DrPizza said:
What if in addition to using the 401k for retirement, you also use it as your savings account? (Unless, of course, you're maxing out your annual contribution.) i.e. if you would prefer to (keeping the numbers simple) have $1000 in your savings account, why not put that extra $1000 in your 401k account? You'll generally earn a higher interest rate - while it's in there. And, assuming that if you spent the $1000 that was in your savings account, you would gradually build it back up, what's the difference between building it back up and putting it back into your 401k? And, (I don't have a 401k; I have a 403b) isn't the 401k pre-tax dollars? i.e. to have "$1000 in savings", less money would have come out of your pocket.

What am I missing here?
Click to expand...
401k withdrawals are subject to a 10% penalty beyond being pre-tax dollars.

An alternative is to take a loan from your 401k, up to half of the balance. That will hurt your long-term savings, though.
 
rcpratt said:
401k withdrawals are subject to a 10% penalty beyond being pre-tax dollars.

An alternative is to take a loan from your 401k, up to half of the balance. That will hurt your long-term savings, though.
Click to expand...

Yeah, I've taken a loan before- but at least you pay interest to yourself....if you do it relatively young, and don't select a really long term payback plan, it's not too bad.
 
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