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White

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Due to a decent response to my Placard Thread and the loss of the OD 401(k) loan thread, thought this was worth a try. We all know a fully funded pension is the jackpot, so let’s avoid any of that. Looking for insights, opinions, success stories. This has the potential to help many and no question should be embarrassing. Thanks in advance.
 
White said:
Due to a decent response to my Placard Thread and the loss of the OD 401(k) loan thread, thought this was worth a try. We all know a fully funded pension is the jackpot, so let’s avoid any of that. Looking for insights, opinions, success stories. This has the potential to help many and no question should be embarrassing. Thanks in advance.
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I'll take a swing...

I do my best to spend less than I make. The only purchases I have ever taken on debt for were my homes. Past and present. Debt is expensive. Avoid it. When we got the numbers for the current house. We are literally paying for two houses. Over 30 years the principal and the interest are almost the same number. No way I can save that well. To be able to throw down that kinda cash. But it's just the idea. Every time you buy something with debt. You buy one for you and one for them. It costs you double.

I got some crap pensions. So does the wife. If we live that long and they still exist. It'll be chips and salsa money. We both got 401K. 10 years of growth and there is some money there. But there is a correction coming. So we will see how bad that gets. I bought a few stocks here and there. Along the way. Did okay. Obvious stuff. Amazon. Con-way. It all made money. But after it all. Not THAT much money. But I came out plus instead of minus. So it's a win. And I don't mind not losing.

Stay humble and kind. And you won't lose your mind. Avoid idol worship. Be your own hero. Don't think there is someone out there wanting to save you. Take care of yourself. And those you love. Health is the true wealth. The money will be what it is. And it won't ever buy you anything that you actually want. If you have ever been in or near a natural disaster. You know just how quickly money loses all of it's value. If you have ever gotten that diagnosis. And it days to go. That money can't change any of it. Maintain perspective. Understand what is important. To you.
 
Amen on the debt. And to try to keep it rolling: If one leases vehicles or has auto loans, you must maintain full coverage. Brand new? Sure it makes sense. Year four of a seven year loan? Think about the interest & the insurance. That can be a chunk every month. Dave Ramsey always says drive a junker. Unless you can turn a wrench, you’re living a headache & paying out the yang. Find the balance.
 
White said:
Amen on the debt. And to try to keep it rolling: If one leases vehicles or has auto loans, you must maintain full coverage. Brand new? Sure it makes sense. Year four of a seven year loan? Think about the interest & the insurance. That can be a chunk every month. Dave Ramsey always says drive a junker. Unless you can turn a wrench, you’re living a headache & paying out the yang. Find the balance.
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On cars. I have done both. For the wife. I buy a reasonable vehicle with a strong history. Brand new. Cash. Right now a Mazda CX-5. I have no worries about her being broke down anywhere. My commuter vehicle. Right now a 2012 Honda civic. They will run forever and ever.
 
highspeeds said:
On cars. I have done both. For the wife. I buy a reasonable vehicle with a strong history. Brand new. Cash. Right now a Mazda CX-5. I have no worries about her being broke down anywhere. My commuter vehicle. Right now a 2012 Honda civic. They will run forever and ever.
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With cars I take the same approach only I do it with good used clean low mileage vehicles with solid known reputations as long running, low maintenance vehicles, also they're easier for a DIYer, cheaper should you have to go to a shop, and they have far fewer whirling doodads, computers, modules, sensors, monitors, that take a scientist to figure out should something crop up.
 
kboomarang said:
With cars I take the same approach only I do it with good used clean low mileage vehicles with solid known reputations as long running, low maintenance vehicles, also they're easier for a DIYer, cheaper should you have to go to a shop, and they have far fewer whirling doodads, computers, modules, sensors, monitors, that take a scientist to figure out should something crop up.
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Older red trucks are my fave :1036316054:

A decent OBD II reader and YouTube can save money on older cars.
Knowing about new cars and having good negotiation skills and a great credit score to get 0-1% financing can make new cars “affordable” less the initial depreciation.
 
Big Dave said:
Older red trucks are my fave :1036316054:

A decent OBD II reader and YouTube can save money on older cars.
Knowing about new cars and having good negotiation skills and a great credit score to get 0-1% financing can make new cars “affordable” less the initial depreciation.
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Road drivers aren’t known for their negotiating skills. But, hell yeah, you tube vids & the info available make a YUGE difference in what one can accomplish in the garage.
 
Thought I’d refresh this amid the current atmosphere. I’ve had a couple guys ask me about cashing out at least part of their 401k. DON’T. Look into a loan from it. No fees. Interest paid goes back into your fund. You’re paying yourself interest. Most withdrawals come with large penalties. We assume this is a short term slowdown. Worst case scenario, you opt not to pay back the loan and it becomes a withdrawal. JMO.
 
Big Dave said:
But if you lose your job, you have to pay it all back.....
Unless...like White said....you opt or can’t pay it back, you pay the penalty on the amount not paid back.
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Big Dave said:
But if you lose your job, you have to pay it all back.....
Unless...like White said....you opt or can’t pay it back, you pay the penalty on the amount not paid back.
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Not necessarily. Most 401k’s are solely controlled by the investment firm. Once you have the loan, separation of service shouldn’t effect the loan as long as payments are made. Speaking from personal experience.
 
White said:
Not necessarily. Most 401k’s are solely controlled by the investment firm. Once you have the loan, separation of service shouldn’t effect the loan as long as payments are made. Speaking from personal experience.
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It’s usually 60 days. Did you repay by the next “April 15”??
Is there a repayment extension in China Flu relief bill?
 
Big Dave said:
It’s usually 60 days. Did you repay by the next “April 15”??
Is there a repayment extension in China Flu relief bill?
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No. Had a multi year payment schedule that went close to two years after I left. Obviously check your plan’s rules. Or just forget I mentioned it:idunno:
 
Fly-by-night said:
Distributions will still be included in gross income and subject to regular income tax, but can be spread out and taken over three years.
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Or take a loan & pay it back when this blows over & get your retirement back on track. But AGAIN, I’ve had guys ask me so I thought I’d throw it out there. JMO. Don’t really give a ::shit:: what anyone does with their finances.
 
White said:
Thought I’d refresh this amid the current atmosphere. I’ve had a couple guys ask me about cashing out at least part of their 401k. DON’T. Look into a loan from it. No fees. Interest paid goes back into your fund. You’re paying yourself interest. Most withdrawals come with large penalties. We assume this is a short term slowdown. Worst case scenario, you opt not to pay back the loan and it becomes a withdrawal. JMO.
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IF. Certainly. IF. Okay. If you are making your bills. And right now, all us drivers are still running. So, probably you are. Even if you aren't, most debt agencies and bill collectors are giving a forgiveness period. And if you are more than 5 years from retirement. Do not take a penny out of anything. Keep investing at the same rate. Right now you are getting everything at a discount. You will be very happy about things on the other side of the covid-19 apocalypse.
 
Fly-by-night said:
Covid-19 relief lets you take a one time withdraw of $100,000 from your 401K with no 10% early withdraw penalty. Just a little FYI
https://www.businessinsider.com/per...age-retirement-early-withdrawals-loans-2020-3
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A bunch of the dipsticks here have all done this and are actively advocating that everyone else does it to. They say: It's free money from your 401K !!! Which, odds are against any of them having lived this long. So, they likely don't feel they will make it to retirement age. Could be a good bet in that situation.

If it's your intention to live past 65. And don't want to be standing in the checkout line holding your prescriptions in one hand and a loaf of bread in the other and needing to chose. Leave your money in there. It'll grow and grow.

Remember. We were overdue for a financial correction. Here it is. This isn't a bad thing at all. It's actually a very good thing.
 
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