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

[RdRdrFan]

Still contradictory to your points man. Wonder if Warren Buffett would plop down $200,000 for a hunt? That guy is richer than everyone on this thread combined and could pay cash. Too bad he isn’t on Rokslide to chime in but my money would be on him saying it’s a really poor financial decision.

Not contradictory at all.

As for Warren Buffett, no idea what he would say. Guessing it would be that his hobby is investing (great hobby by the way) and he’d rather watch that $200M grow than watch sunsets in the backcountry. No bad call either way for Mr. Buffett as he can afford to do what his heart desires.

 

[HNTR918]

 

[RdRdrFan]

View attachment 821898

Great tool to demonstrate the benefit of compounding returns. Not really an accurate view of what it actually looks like in the real world. But I like the point it is trying to make.

 

[180ls1]

Great tool to demonstrate the benefit of compounding returns. Not really an accurate view of what it actually looks like in the real world. But I like the point it is trying to make.

This actually illustrates the "time value of money."

 

[RdRdrFan]

This actually illustrates the "time value of money."

Semantics as the chart appears (haven’t calculated) to be showing a flat 15% return. Same chart can be utilized to discuss either one.

 

[180ls1]

Semantics as the chart appears (haven’t calculated) to be showing a flat 15% return. Same chart can be utilized to discuss either one.

Then why criticize it for not being accurate when you are trying to use it to demonstrate something it wasn't intended for?

Furthermore, you are wrong about the 15% return. The return assumptions are sliding.

 

[WRO]

So you’re saying i don’t have priceless memories???? Seriously, i’ve been at this 40 years man i’ve got an entire lifetime worth of priceless memories. I ain’t just walking out in my backyard ya know.

JFC, I didn’t say you don’t have memories.

I can tell you hunting the remote mountains of Alaska is a completely different memory than hunting the remote areas in the lower 48. (Done both)

I wouldn’t trade all the time I spent in AK and the cool memories I made for more money in my retirement.

I got to go be a part of a hunt in on an OIL tag in Utah this year, that will stick out more than any other memory in my deer hunting career besides hunting with my kids.

Exceptional places and experiences create exceptional memories.

 

[ironworker378]

More and more, each day, I like the sound of a bullet hitting long-range steel over $$$$ on a Head on the wall that no one cares about.

 

[TheWhitetailNut]

There is extremes to all of this.

Someone really close to me owns his own business, he is a multimillionaire through his own contributions plus if he sold his business today he’d net at least 10-15 million. This man frets over a few thousand dollars every deer season and is so stressed from work that he may not enjoy his fortune. My dad is the opposite, made plenty of money over the years and spent almost all of it on hunting/life. He is 80 now and still works some, he won’t leave us much but that guy is happy and didn’t miss out on much in life.

As much as retirement seems so desirable, the amount of people that deteriorate rapidly and get bored of life once work ends are rarely talked about.


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There's a great deal of truth here. For most business owners, the business is the primary source of enjoyment. This explains why your friend frets about the few grand, he just doesn't value it (deer hunting) much. Additionally I think lots of folks misunderstand wealthy people (1st Gen.) the joy is in generating the wealth, not having it.

 

[RdRdrFan]

Then why criticize it for not being accurate when you are trying to use it to demonstrate something it wasn't intended for?

Furthermore, you are wrong about the 15% return. The return assumptions are sliding.

I criticize the accuracy of any of these tables that are presented without context. While the math may be accurate in the fact of 3x4=12, it is not applicable to a scenario when NxY=12. Variables come into play in real life. The chart assumes and fixes variables that are rarely exactly mirrored in real life. So yeah, it isn’t inherently accurate beyond stipulated variables that cannot be controlled in real life.

Fair enough on the return. I looked at the first two years and saw that it doubled in 5 years. That’s about a 15% return. I stated in that post that I didn’t calculate the return.


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[NRA4LIFE]

IMO, 401K's are for necessities and retirement. If you're taking money out of it to fund a hunt, most likely you cannot afford the hunt.

 

[Billinsd]

Life is a journey, the end is death, heaven for me! Your journey may end differently. Thanks Jesus for paying for my sins! Enjoy your journey in life responsibly, “overall”, this is not a practice or a drill. Understand the ramifications of your choices and decisions. However, whatever you do don’t wait to LIVE until after you have retired, you might not get there and your best years will be behind you!!

 

[TheWhitetailNut]

More and more, each day, I like the sound of a bullet hitting long-range steel over $$$$ on a Head on the wall that no one car

That's amazing. Some want to hunt sheep, some do both.

Thank god i enjoy hunting anything i can do diy for the cost of gas and lodging. In the end the antlers don’t mean much to me other than to trigger a memory. I realized long ago literally no one else cares what i have on the wall. For me it’s all about the actual hunt. Even if you have the money i think its insane to spend $200,000 to kill an animal that in the end will just sit on your wall for people to simply look at and either say “nice” or “disgusting”. Even those that can appreciate it won’t be nearly as excited as i would be or realize what went into getting the animal they’ll just think it’s simply cool. But most i take downstairs in the man cave barely glance at the game down there.

Folks who can readily spend $200k to hunt don't give 2 peanut turds what anyone thinks about what is on their wall. As has been said, Warren doesn't do anything but buy good companies, eat well salted hamburgers, and drink Cherry Coke, that's his joy and purpose. A false equivalency at it's finest because he spent billions on his pursuits, he hasn't done it for the money since 1959.

 

[TheWhitetailNut]

IMO, 401K's are for necessities and retirement. If you're taking money out of it to fund a hunt, most likely you cannot afford the hunt.

Sure, if there's not much in there and it is your only vehicle.

 

[NRA4LIFE]

If you're taking money out of your 401K to fund a hunt, there obviously is no other vehicle.

 

[TheWhitetailNut]

If you're taking money out of your 401K to fund a hunt, there obviously is no other vehicle.

Not true at all. Many 401K's have a very low/no interest loan option. This is much more appealing than triggering a taxable event in a brokerage account or liquidating business assets or other investments. If they just took the money out that's another thing because of relevant penalties and is outside the realm of sensible.

Depending on the big picture one should weigh if this is a better option than a HELOC.

 

[schmalzy]

IMO, 401K's are for necessities and retirement. If you're taking money out of it to fund a hunt, most likely you cannot afford the hunt.

Can you reference or show a thread or post on Rokslide where someone advocated and supported withdrawing money from a 401k to fund a sheep hunt?


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[2531usmc]

What about the ones who are already dead?

If you’re laying out your life’s financial plan on dying early and don’t, you end up at

Decade of 60s and beyond. Basically trapped in house just trying to pay bills and feed yourself.

Best of luck, you may need it,

 

[2531usmc]

I’ll tell you something else, I have friends that never saved or planned for retirement (YOLO) and they made some of the same arguments as this thread

But once they hit their late 50s or early 60s, almost all of them are deeply scared of their situation. They are looking at their social security and savings and trying to figure out how to pay taxes, put a roof over their head, and feed themselves. Maybe keep a car and pay car insurance

Truly, has to be a horrifying situation to be in and all of the Alaska memories in the world can’t help you then

 

[KenLee]

If you’re laying out your life’s financial plan on dying early and don’t, you end up at

Decade of 60s and beyond. Basically trapped in house just trying to pay bills and feed yourself.

Best of luck, you may need it,

Naah, if I run out of $ this way too big house and land with it will get sold and I'll live in one of the rentals and I'll keep having fun.