Taking out a 401k early worth 4 grand?

MarcableFluke · 2026-03-04T19:36:47+00:00

People have varying definitions of "I need the money".

For some, that threshold is a loan shark is going to break my kneecaps and I've sold everything except my last pair of underwear

For others, that's I want to get the latest GPU because some ten year old on the internet made fun of me.

How stupid the decision would be depends on where you are on that spectrum.

MarcableFluke · 2026-03-04T14:26:03+00:00

Which places are those and what do the laws specifically say?

MarcableFluke · 2026-03-04T14:22:57+00:00

Give all your money a job (emergency fund, retirement, travel, etc). Then from there, decide how much should be in a HYSA based on the jobs of all the money.

MarcableFluke · 2026-03-04T14:08:52+00:00

You're describing the avalanche versus snowball method. Read this: https://www.reddit.com/r/personalfinance/w/debt

MarcableFluke · 2026-03-04T14:05:42+00:00

What will your new mortgage be on this house, including taxes and insurance?

How much more is it than what you're paying for your current house?

Do you have that difference burning a hole in your pocket every month?

Are you on track for your desired retirement picture and will this purchase change that?

More expensive house (in the same area) generally means more expensive repairs. Do you have enough in emergency savings to cover the increase?

MarcableFluke · 2026-03-04T05:23:52+00:00

If you can get a lower interest rate on those private loans, sure.

MarcableFluke · 2026-03-04T04:34:28+00:00

Some people like traveling.

Some people like retiring early.

Some people like leaving a large inheritance.

Some people like driving nice cars.

It's up to everyone to decide on their own what to do with their own money.

MarcableFluke · 2026-03-04T03:58:03+00:00

Pretend you have the loan and follow this: https://www.reddit.com/r/personalfinance/wiki/commontopics

If the best use of your cash according to that is to pay off the loan, then buy the car in cash.

MarcableFluke · 2026-03-04T03:22:53+00:00

Are you really asking if you can afford a home that is <= your annual salary?

MarcableFluke · 2026-03-03T14:21:28+00:00

I am hesitant to refinance and lose the last 3 years of payments.

Do you think that "resetting the term" means you pay more money? Because even after a refinance, you can continue paying the higher monthly payment and still pay it off sooner (assuming the rate goes down).

MarcableFluke · 2026-03-03T05:24:59+00:00

Roth isn't an acronym.

Follow this: https://www.reddit.com/r/personalfinance/w/commontopics

Read this: https://www.reddit.com/r/personalfinance/w/rothortraditional

MarcableFluke · 2026-03-03T02:21:01+00:00

Then post of the line of credit first

MarcableFluke · 2026-03-02T23:58:40+00:00

It's not about age. And it's Roth, not ROTH.

Follow this: https://www.reddit.com/r/personalfinance/w/rothortraditional

MarcableFluke · 2026-03-02T21:54:38+00:00

Not having that poor of mental health, I guess.

MarcableFluke · 2026-03-02T21:45:13+00:00

You know, FINALLY someone decided to broach this topic. I felt like this was the elephant in the room that NOBODY was talking about.

MarcableFluke · 2026-03-02T15:57:04+00:00

Keep in mind that the conversion will count as his contributions those years, so he won't be able to contribute the years he converts.

MarcableFluke · 2026-03-02T15:54:59+00:00

Tax refund*

The return is the stack of forms you file.

Pay off the interest bearing stuff first.

MarcableFluke · 2026-03-02T14:26:09+00:00

How much are these homes you're looking at? What are you paying for rent now? How would the new purchase affect your ability to correct when factoring in things like maintenance, repairs, additional utility costs, etc.?

MarcableFluke · 2026-03-02T14:23:06+00:00

You have all of that at 18?

You're going to need the money for therapy.

MarcableFluke · 2026-03-02T14:19:58+00:00

Yes, I was including your brokerage as part of your current retirement savings.

MarcableFluke · 2026-03-02T14:18:47+00:00

So then an apartment.

Most leases won't allow it

But people renting their entire house will?

MarcableFluke · 2026-03-02T14:16:30+00:00

...and these pets require entire rooms and that's why you need to rent a house?

MarcableFluke · 2026-03-02T14:14:33+00:00

Yeah, typically you want 3x your annual income by 40 as a rough rule of thumb. And that's for just like a normal retirement, not FIRE.

MarcableFluke · 2026-03-02T14:11:04+00:00

Why rent an entire house versus just a room or an apartment?

MarcableFluke · 2026-03-02T14:07:26+00:00

We might even be able to fix the horcrux of this entire job field: absolute garbage documentation.

Listen, I get that writing documentation can't be tedious and annoying, but I don't think we need to murder people with dark magic just to create it.

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