Posted on: 04th Aug, 2007 09:42 am
I am 36yrs old. I have 34k in my 401k. I have 16k in debt I would like to pay off. I am falling behind in all payments. I will save about 700 a month in payments by eliminating this debt. I plan to retire when I am 65. I don't feel if I borrow from my 401k I will really save in my budget because the monthly payment it will take to repay will defeat the purpose. is it sometimes nessasary to cash out a 401k? I plan to max my contribution and I have a 50% company match. Also, getting into debt willnever be an option. I will keep about 7k in a savings at all times, this should eliminate a need to borrow and get into debt again.
My previous job offered a 401k, which i paid into, i have a little money in it, not much at all.... but my new job doesnt have a 401k, they offer a pension... I wanted to know if cashing out the 401K to take care of some bills would be a good way to go.. im talking less than $3000... Since im not paying into it anymore, its just sitting there. What are you opinions?
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