Why you should not take equity out or dump your 401 K to take super expensive hunts.

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Because when they are broke everybody else has to support them after such a stupid decision.


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Sure. So I'm 35, I take $20k (of my money), pay the tax penalty (last I looked into it was 10%, definitely not the 50% previously posted) and burn it on a trip. Let's call it $25k. I owe about 200k on a house that is currently valued near 600k. My 401k took a bigger hit thanks to Crooked Joe. I still have a job and another thirty (or more) years to work.

Where's the part that I go broke? Who is the everybody else that gets to support me?
 

Wrench

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You'll pay an immediate 10% penalty and You'll pay income tax on the disbursement which is going to be another 20-25%.

So your 25k pulling 6% becomes 26,500......or you pull the 25k and pay the penalty and taxes and net 17,500.

Quick math says.....you better love it.
 

5MilesBack

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Only when one's tax money is paying to support the other.
Exactly. Same for bad health decisions. We all end up paying the price for the unhealthy as healthcare premiums shoot through the roof for everyone to pay for those that use it the most. Of course the government mandating coverage for pre-existing conditions didn't help. Bad personal decisions affect everyone at some point. We all get to pay.
 
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There are so many people that want to live like today might be their last day on planet earth. It’s almost as if they are surprised when they wake up the next day…… Lol

Taking money from your 401(k) to fund hunting trips has got to be the stupidest thing I’ve ever read.

But, everyone has different goals. You do you and I will do me. Just don't let me hear your crying when you find out that you live into a ripe old age and your so broke you can't take a crummy bus tour with your wife
 
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Sure. So I'm 35, I take $20k (of my money), pay the tax penalty (last I looked into it was 10%, definitely not the 50% previously posted) and burn it on a trip. Let's call it $25k. I owe about 200k on a house that is currently valued near 600k. My 401k took a bigger hit thanks to Crooked Joe. I still have a job and another thirty (or more) years to work.

Where's the part that I go broke? Who is the everybody else that gets to support me?

Good for you. Sounds like you’ve been pretty successful in your life/career. So why would you take not only a penalty, plus taxes and fees, plus lost earnings to go hunt an animal. It just makes no sense to me.

If you can’t cash flow it, you can’t afford it. That’s my philosophy in life and it’s served me pretty well. And my life is no less complete because I haven’t chosen to spend a nice vehicle cost or in some cases a normal size mortgage to go on a hunt.

It’s amazing how spoiled we are as Americans. And the I want it now even though I can’t afford it mentality to go with it is worse


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realunlucky

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Good for you. Sounds like you’ve been pretty successful in your life/career. So why would you take not only a penalty, plus taxes and fees, plus lost earnings to go hunt an animal. It just makes no sense to me.

If you can’t cash flow it, you can’t afford it. That’s my philosophy in life and it’s served me pretty well. And my life is no less complete because I haven’t chosen to spend a nice vehicle cost or in some cases a normal size mortgage to go on a hunt.

It’s amazing how spoiled we are as Americans. And the I want it now even though I can’t afford it mentality to go with it is worse


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You act like a 401k isn't thier money, when it most certainly is.

A 401k is simply an investment instrument with strings attached to DISCOURAGE early withdrawal, if your not discouraged go enjoy the fruits of your labor.

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bigbassin

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Let me start by saying I’ve probably watched every Dall Sheep video on YouTube, and I hope to one day target one.

One of the things I find interesting about financing hunts is that I would think that most folks that do so (or truck, boat, etc.) could pay for it with cash if it was actually their true goal. Getting approved for financing any of these things is just how lacking fiscal responsibility gets spun as being able to afford it.

I.e. you really only need maybe $2000/mnth to survive relatively ok outside of some of the major metropolitan areas in the US assuming no debts or extenuating circumstances. The average median salary of $63,795 equates to roughly $3,721 per month post tax. So you could put 800/month towards retirement (15%), and still have $950 per month to put towards a hunt.

You’d have a 50k hunt paid for in cash after 4.25 years just earning the US average.

Or a new truck, or boat, etc.

What this does not account for is family spending, living in a place nicer than the bare minimum required to be safe, or going out to eat, vacations, new fishing gear, etc. And I understand most don’t want to live like a Spartan, but that is where individual preferences and decisions play a factor in discretionary spending. Nothing wrong with picking any one over the other, life is what you make it and it’s your money to spend how you see fit.
 

Brooks

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I always figured if I go in debt I’ll just keep working and pay it off. Bought a new house paid it off, bought new Peterbilt trucks, paid them off, bought new diesel pickups paid them off, sent two kid to college, paid it off, went on a few big hunts, paid them off.Never cared how much money I have when I’m gone but I do have good insurance so when I’m gone mama can do what she wants with it. My brother on the other hand has several million in the bank and lives like a squatter,drives an old car and just stays home.
 

Gadjet

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It doesn't matter to me what anyone does with their money. If a guy can afford a crazy expensive hunt and considers it one of his priorities, well then good luck to him. If a guy can't really afford it and goes into debt for, again good luck to him.
I personally have a 3/4 slam and would need a stone to complete it. I could book a hunt tomorrow if I wanted too. But for me personally it just feels selfish. I would rather go on nice vacations with my wife and daughter. And leave my daughter something when I'm gone. To each his own.
 

toddh

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You act like a 401k isn't thier money, when it most certainly is.

A 401k is simply an investment instrument with strings attached to DISCOURAGE early withdrawal, if your not discouraged go enjoy the fruits of your labor.

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So use an equity loan. Compound interest is the most powerful force in the universe.
 

Steve O

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It doesn't matter to me what anyone does with their money. If a guy can afford a crazy expensive hunt and considers it one of his priorities, well then good luck to him. If a guy can't really afford it and goes into debt for, again good luck to him.
I personally have a 3/4 slam and would need a stone to complete it. I could book a hunt tomorrow if I wanted too. But for me personally it just feels selfish. I would rather go on nice vacations with my wife and daughter. And leave my daughter something when I'm gone. To each his own.
Same boat. Balance in my life is more important. The hunts I have left on my “want” list are more than likely more than I want to spend. Pulling money out of the 401k is not the smartest was to finance a hunt.
 
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