401k. should i use my 401k? im soon to quit my job to be a stay @ home mom.?


By admin ~ July 16th, 2009. Filed under: General.

401k. should i use my 401k? im soon to quit my job to be a stay @ home mom.?

401k. should i use my 401k? im soon to quit my job to be a stay @ home mom.?
im soon to quit my job so i can enjoy my sons first year of life. mean while my man is going to take care of the expenses, but i was considering cashing in my 401k to pay 2/3 of our car payment. we will only owe some where around 1000.00. now it seems like a good idea to me but WILL I BE MAKING A MISTAKE IN THE LONG RUN? i dont have much but once i start working again ill be back at square one. i jus want opinions nothing negitive though please. n im in my early 20s

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1 Response to 401k. should i use my 401k? im soon to quit my job to be a stay @ home mom.?

  1. admin
    July 16th, 2009 at 4:21 pm
    There are fierce penalties from the IRS for cashing in a 401K, which include a 20 percent early withdrawal fee. If you haven't figured this into your numbers, do so. As an older mom who never had a retirement account, I can honestly say that I wish I had done things differently. The family will need a lot of things in the future, and you can't count on being able to acquire another nest egg for possibly another 20 years. That will put you in your 40's…and by then, you might need every penny for college.

    Do the math, however. If debt is eating you alive, the return on your 401K might not mean much. But breaking it to pay for something like a car loan seems awfully risky.

    Good luck!

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