Hello Veeky Forums i am going to take out a loan of 5k out of my 401k retirement and i plan on investing in stocks, can u guys recommend any good companies to invest in
Hello Veeky Forums i am going to take out a loan of 5k out of my 401k retirement and i...
save money shithead
MGT buy the dip
Is your 401k not already invested in stocks? I'm genuinely confused...
Op here, im 26 i have 120k in my 401. Yes that money is being invested but in pension funds, i wanted to play the stock market
given your level of understanding, i think your best course of action is to just continue licking batteries and sniffing airplane glue
Announcement on tuesday I hope
You're all replying to a troll thread. Most employers don't even offer 401k loans because of the administrative expense, and of those that do, almost all restrict the uses of the loan to things like emergency medical expenses or home purchases. No reputable 401k administrator will allow a participant to take a loan for "investing in stocks."
Furthermore, OP says that his 401k money is "being invested but in pension funds" but this is a nonsense statement. A 401k is a pension fund. A pension fund is not an investment; it's an account type.
Stop feeding trolls on Veeky Forums looking for attention or asking nonsensical questions. The only way to drive off the morons, day-traders, forex gamblers, "make me rich" threads, robinhood heros. and other losers is to not give them the attention they crave.
drive off morons, day-traders, forex gamblers, "make me rich" threads, robinhood heros. and other losers.
b-but thats like 90% of this board senpadrea
90% of this board
Ha ha, you're being generous.
it's probably like 98%
I agree on the spirit of your meaning, obviously this guy has no business taking a 401k loan, however, figured you might find it beneficial to know that actually most 401ks that do offer loans typically offer their <5 yr loans on a preapproved basis. I.e. no IRS safeharbor requirement of financial hardship, simply loan for whatever. Obviously can't say where I work to know this, suffice it t say I've worked with thousands of 401ks for experience. And yes, unfortunately this ease of access aids i the undoing of so many financial plans, whatever minimal planning had done in the first place, that is.
This was in reply to
If you've worked with thousand of 401ks, then you'd know that there's no such things as "401ks that do offer loans." 401ks don't make loans; 401k administrators make loans. Your 401k account is owned by the administrator in a trustee capacity, and there is no legal requirement that the administrator offer a loan program of any type. Furthermore, the administrator can place restrictions on the permitted purposes and use of loan proceeds.
I don't mean to jump down your throat since the main purpose of your post was essentially correct, but you highlight another major problem on this board: half-correct answers. Too many people post replies with an incomplete understanding of the topic, and give incomplete advice as a consequence. Whether due to ignorance or laziness, the result is the same: unhelpful, partially accurate advice.
Details matter when it comes to matters of personal finance. If you don't know the details, don't understand the details, or can't be bothered to address the details, then don't post.
This is actually a really bad time to start investing because there's a lot of evidence that the economy is on the verge of a major correction. Right now, the Chinese credit market is a time bomb, there' a housing bubble all over the western world, and most of the recovery since 2008 has been built on cheap credit, not organic growth. I think we're likely to see a drawdown of at least 25% up to maybe as much as 50%. Basically If I were you I would hold my money as cash and buy at the bottom in 2ish years. You could also take a short position now, which is what I'm doing
Shut the fuck up. You have no more ability to predict the future of the markets than you do to predict the next lottery numbers. Study after study after study has proven that financial markets are simply too complex to predict, other then systemic long-term trends.
You belong to yet another category of Veeky Forums posters who really should just die in a fire.
You do realize that you have to pay your tax rate plus a 10% penalty for with drawing it from your 401k?
You're essentially borrowing money at 40% to do this
A 401k loan isn't a withdrawal and doesn't follow the same rules.
Read and take to heart what I said about giving incomplete, half-assed answers. Your quality of advice is essentially the worst kind possible.
Jesus, this thread makes me sad.
Jesus, this thread makes me sad.
Probably because you're full of shit and don't realize you're wrong
Put your trip back on ihaz and then go fuck yourself
True, it would be 40%, but not with a special assessor's certificate.
This would enable him to bring the tax rate down to 17% or so. Plus, if he coupled it with capital loss credits, he could get a write off on some of the excess.
this, report and move on
Op here this is not a troll thread, i mistakenly siad its invested in pensions i ment mutual funds, , there seems to be alot of confusion over the 401k itself, i dont know if all 401's are created equal but i am able to take a loan out of my 401, i do not need to inform them whats its for i can choose to tell them its for a down payment on a house or something of that nature , i simply came here for people's opinions on good stocks to invest in
should I take $4000 out of my 401k and buy gold and silver, guys?
Yeah, that's not a crazy amount, you can afford to do something slightly crazy. It's a pretty safe bet if you are willing and able to sit on it for a while.
There is a difference between a loan and an early withdrawal. As I said above, a withdrawal has a tax penalty.
They would never give you a loan to invest it, so your options are either lying about it or doing an early withdrawal.
Lying about how you are going to use the money to get a loan is misrepresenting hardship.
You'd have to do your own research to find out if it's actually a crime or if you just run the risk of being sued.
Really stupid idea and this is definitely a troll thread
I already said i do not have to give a reason as to what i need the cash for, wow this place really is shit on every level , clearly no one here has a job let alon a 401