Did you buy those SPY when we told you to??
yes
“All right” is two words, not one.
^Alrightythen!!!
Shouldn’t you be asleep, Greenie?
This is true. It’s unfortunate that at 29 years old I have to constantly bail out my 60 year old parents because they made a lifetime of bad financial decisions. I think I would be less sour if they had helped me at all to get through college etc. but that wasn’t the case. Anyhow, when I give them money I try to buy the things they need or pay the bills myself because handing them cash is nearly the same as lighting it on fire. I’m sure this isn’t the case for Nerd but it’s experience like this that has developed my thoughts on the matter. Better to accept that the money is gone than to be let down by someone you love.
Haha actually were exactly the same storyline. Dude! You told me you were old. I’m 29 too. Let’s chase tail!!! Where do you go out my nigga?
also just a tip, try telling people when they disappoint you, why it disappoints you, and what they should do. It works wonders
You never fail to deliver lmao
I work at all times of the day during tax season. (One of the downfalls of running your own firm vs. being the Director of Investment Services–who worked 35 hours per week.)
Oh…I forgot to add this earlier…score one for the CFP (or PFS)!!!
I don’t think it works that way. You’re charged interest if you take a loan against your 401k. The cash is actually not yours, it’s the administrators of your 401k. Otherwise you’d suffer the 10% penalty.
^No, you pay yourself the interest.
So you borrow $50k from your 401k. One year from now, you write a check to the 401k company for $52k. ($50k loan plus 4% interest)
So, according to his logic, he transfers $52k from his checking account to his 401k, and makes $2,000 on the deal.
im guessing you guys dont count your 401k as a part of your net worth. lol. just money you give to an administrator.
Nerdy, you fool. What you are doing is trying to change your asset allocation from an efficient, long term index strategy in your 401k that everyone should have, to a get-rich-quick scheme of some unknown nature, through a method that might result in significant tax penalties. From my view, you are making a series of novice mistakes, such as overconfidence in the prospects of this risky investment, not valuing efficiency, having an illusion of control, and possibly underestimating the downside risk of your withdrawal method. Lessons from a professional: 1) You only appreciate risk management when you have traded through a bad time, 2) Don’t bet your nest egg on short term prospects.
Sure, you might make a couple of dollars from this, even if it is with a low risk efficiency. However, any successful long term investor would have reservations regarding the risk/reward of this activity. Why don’t you just save and invest the money when you have it? You should be making at least $150k in your current job. You have no family in need of support, or other financial obligations, from what I can tell. So you should be able to accumulate this sum easily. If you’re not making that much in what you call a “finance” job, then you should seriously consider investing the money in education and self improvement to help your career.
Loan not withdrawal. Essentially using 401k as a cheap margin account for entrepreneurial activities while reducing market risk. i like to borrow money when it’s cheap, I just wanted to maximize what I wanted to borrow and have something to use it for. Anyways I appreciate the concern but I already borrowed it. The biggest risk I have is withdrawing my Roth contributions to pay off loan in case of job loss prior feb. after feb I can pay entire thing at will.
Anyways I have thought of going back for an MBA for the prestige but I don’t really wanna spend the money or work longer than I need to. Quitting after a mil. U Phd or masters ohai?
nery reminds me of that trader from fooled by randomness
Nerdy, no offense or nothing, but you seriously lack a basic understanding of how this stuff works.
When you take out a loan from a 401k, it is effectively a withdrawal. It’s not a “distribution” for IRS purposes, but otherwise, that’s exactly what it is. That is, if you have $400k in your 401k, then you “borrow” 50k against it, you only have $350k working for you.
In a “margin” account, if you have $400k, and you “margin” $50k of it, then you still have your $400, plus you have another $50. Because this is a real “loan”, and not a de facto withdrawal.
I have no problem with you borrowing from your 401k if you want to help your mom, or if you have some other financial emergency. But to withdraw tax-deferred investments to invest in non-tax-deferred investments is absurd. And the fact that you think that transferring $52k from one bank account to another somehow increases your wealth is also absurd.
If a CFA Charterholder cannot figure this out, then score 1 (or 1000) for the CFP and negative 100000000 for the CFA.
i dont want to argue what’s the proper word to use. the point is there is no penalty tax. i agree that there is 50k less working for me for teh SPY, and thats exactly what i wanted. i derisked. the 50k, i borrowed will be dca incrementally back over the next 5 years by my future self.
i dont think i am richer because i moved 50k from one account to another. it just allowed me to access money at a cheap cost. that shoudl be pretty obvious. i actually think its hilarious though that so many people have such strong feelings about this.
its a done deal my boys. we’re beating a dead horse. if i fail, i will let you guys know. and start a kickstarter to fund me. :). AF will surely help 
We all know this is to pay for your weekends in Vegas
yep i think i might go this month.