School me on investing...

Living on a cashflow basis is pretty good.
I've been on a cashflow basis only since I cleared my last debts in 2000.
Only owe on my house.

please expand on what you mean by commodities.
Crypto? only market makers and exchanges make any thing on crypto. Poor decision, IMO.

depending on what you *actually* mean by this, that's in the range of odd to straight up "tax penalty for early withdrawal" levels of stupid.
Especially since you're under 40.

 

the total sum of my 401k isn’t how I look at it. When I look at the total I see 75% liquidity. It’s basically a savings account in my mind because future interest gains on it are going to be negative. I can make more long term with a different investment route.

 

Your employer doesn't match any contributions? Or you think you can do better even considering that?

Can I assume you feel the same about an IRA?

 

I'm sure you know, but on the outside chance you do not, I have to say this. You will have to pay a 10% penalty for withdrawing that, plus taxes on the amount you withdraw. Based on what you have said your earning are, I'm no accountant but that could easily be 40-60% of the total. You can roll it back into a self directed IRA within 60 days and not pay any penalties if you change your mind.

 

if you're getting 11% annual return on compounding interest, what about any of that implies negative interest?

you realize for your dollar/inflationary dillusions to take place, the entire global system of any society would have to collapse. that is some way to do long term planning man christ.

plus that, is what i was getting at on the last page. throwing away money to the gubmint yo.

 

Employer match is only 7 percent. And I’ve only had it since getting out of jail 2.5 years ago. The balance isnt high enough to worry about the 30% hit (20 from fidelity plus 10 come tax season) so yes, I’m confident I can make better profit elsewhere in the coming years. I’m not saying the financial system is going to completely collapse, im saying I can maximize my interest and value retention elsewhere.

 

He'll make it up with his $1 million BTC

 

You didn't actually clarify if you liquidated and withdrew your 401K, or you just rolled it to a cash account option under the 401K.

1) I thoroughly disagree with your premise that future interest gains will be negative. Assuming the world goes to shit... Even at a bare minimum you can put your 401K into bond funds and earn basic interest without facing a withdrawal penalty.

2) Unless you are Warren Buffet, Peter Lynch or Jeff Bezos, as an individual you aren't going to be able to out perform the market. Statistically and over time you're just not going to do it. Don't care who or what you've read. Ain't going to happen.

Both @Sweatypants and @Boman Forklift have spelled it out. Between penalty, and income tax, liquidating your 401K should only be a last ditch effort due to medical expenses. Congratulations, your 75% liquidity has now $0.43 on the dollar that you originally had.

If you really want to "play broker" why not roll your 401K into a self directed IRA and then buy some real-estate through it. That way when they pay rent, they are paying your fund and not just a bank.
https://www.investopedia.com/articl...15/using-your-ira-buy-investment-property.asp

 

exactly

 

thanks for posting that, learn something new every day. there's probably 3 people on this forum that could actually utilize it, i not being one of them haha given this little tid-bit:



interesting concept though for sure. and so what, the investment fund holds the asset and take rent payments straight into the fund that, do what... avoid taxes i guess? and there is no mortgage, so you're shelling out a ton up front on an asset you hope will appreciate and also in the meantime amass rent on it? what happens when you want to get rid of the asset down the road? proceeds also tax free? the maintenance potential v. contribution cap seems fuckin nuts. this straight up seems like some shit for a 55 year old "i wanna retire and play golf all day" dude that already has a chunky IRA and doesn't have to game the business of it and can just let it ride with what's already in there.

 

Am I wrong or do you mean they'll match (double) your contributions up to 7% of your pay? That's better than mine does, and I damn sure take advantage of every dime they offer. Is there no "self directed" investment option that you can use?

 

No, they only match 7% of what I put in Up to 5% of my income. Like I said it’s basically a fucking savings account

 

Thats what I'm thinking.... not a good play for someone under 60 years oldish. There's probably some good advice in here somewhere, and since I'm wanting to get rid of my real estate I should pay attention, but I would rather play golf

 

Are you sure?? I've never worked anywhere they didn't do a 50-100% match up to x % of your income. If that's really all they give you I could maybe see not contributing further... but I still think cashing out whatever's in there is ill advised.

And where can I get one of these 7% interest savings accounts?

 

I was sure they were mistaken, but I asked and yup it’s only 7% of what I put in. Also… I recently switched employers and they have a far better 401k program to which I’ll be co tributing

 

you may want to re-read that wording.
Every place I've been that has a 401K match says it's either a 1:1 match, or they match 50% up to XYZ Total.

Currently I have a 50% match up to a total of 6%.
So for every $12 I put in, I get $6.

It's free money.

 

Or in other words a 100% return on 6 of those 12 bucks. Not a lot of investments making those kinds of returns. He should definitely not do it and buy Bitcoin.

 

I like how you guys are willfully pretending like 401k’s don’t get wiped the fuck out when there’s a financial crisis.

and as I said, I’m not out of the game, just switching funds

 

I'm not relying on my 401k alone. It also doesn't matter until I need the money. It's just one piece of the puzzle..not the entire financial picture. What I am saying is your employer match is a 100% return up to the limits. Not many places to make that kind of return on your money for doing nothing but actually trying to save some.