Thoughts on Liquidating Retirement Accounts

[Szwampdonkey]

Wrong. Its a Roth

Fine, unless you want to pay 10% penalty to the Govt and income taxes on earnings. Which will still equate to losing anywhere from 1/3 to as much as half of what you spent all those years earning on it.

 

[D S 319]

You need yourself a new financial advisor.

 

[EdP]

After all this the initial question strikes me as trolling.

 

[moxford]

I took out a 401k loan from myself for my first house. Some risk due to the cliff if you lose your job, but you also pay yourself interest on the loan.

Second time I liquidated one of my 401(k)s from a previous company and ate the 10% hit, again for real estate. It was painful due to paying the taxes on top of the 10%, but in the end, worth it.

It is just an investment account "with a star next to it" and not sacrosanct. If you have significant assets also be aware of the tax-bracket bump and the retroactive impact on the other chunks of your imcome.

Run the numbers, make the call on whether or not it is worth it. Home renovation is not a Vegas trip, so it is more reallocation of equity into real estate, but any ROI there should be considered carefully.

Cheers,
 -mox

 

[HornPorn]

You need yourself a new financial advisor.

 

[bsnedeker]

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In that case, you DEFINITELY need a new financial advisor!

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[bozeman]

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Then I would avoid your advice like Neo avoiding bullets.......

 

[BigDawgWill44]

Mutual funds with proper allocations is what you need. Keep it invested.


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