NikeTalk › NikeTalk Forums › The Lounge › General › NT: Official Personal Finances Thread
New Posts  All Forums:Forum Nav:

NT: Official Personal Finances Thread - Page 39

post #1141 of 1152
Joining the party late here.

Just had a son and want to start his college fund now. What I wanted to know is the 529 plan worth it or would I be better off investing in mutual funds?

Any and all advice is appreciated.
post #1142 of 1152
Don't you invest in mutual funds with a 529? Thought it was just another tax advantaged type of account like an IRA or 401k.
Sacramento Kings | San Francisco 49ers | San Francisco Giants | San Jose Sharks | Sacramento Republic FC | Sacramento Rivercats
Reply
Sacramento Kings | San Francisco 49ers | San Francisco Giants | San Jose Sharks | Sacramento Republic FC | Sacramento Rivercats
Reply
post #1143 of 1152
Quote:
Originally Posted by Based Mod View Post

Don't you invest in mutual funds with a 529? Thought it was just another tax advantaged type of account like an IRA or 401k.

It seems as if there are some advantages but I'm worried about if he gets a scholarship or goes to a school where his tuition is covered since I'm a disabled vet, the money still has to be used for school or it will be taxed or have penalties.

Just wondering if it will be easier to pull money out if it's invested in mutual funds vice the 529.
post #1144 of 1152
Quote:
Originally Posted by tupac003 View Post

It seems as if there are some advantages but I'm worried about if he gets a scholarship or goes to a school where his tuition is covered since I'm a disabled vet, the money still has to be used for school or it will be taxed or have penalties.

Just wondering if it will be easier to pull money out if it's invested in mutual funds vice the 529.

The money can be used for education related things such as room and board, books- which could cost 1-2k annually, and laptops.
post #1145 of 1152
Good info in here

Another scenario for y'all
And this is the position I'm in now

Young dude (under 26), fully vested in 401k. Been with the company 3 years. Thinking about leaving to start with a new company (salary will be higher of course).

What's the smartest thing to do with the 401k? I know rolling it over is always the way to go. But what are your thoughts on withdrawing it upon resigning from my job, and take the cash to use as a DP for a house? And then I start fresh with the new jobs 401k?

Not sure if that even makes any sense or if ppl do that, but what do y'all think?
post #1146 of 1152
Best case scenario is to never have to dip into your retirement for anything. I'm tempted to take something out for a down payment too, but I'm gonna try to be patient. Also, rolling over your 401k isn't necessarily "the smartest thing to do" because fund options vary from employer to employer. The funds at your old job might be a lot better than what might be available at the new gig. Rolling over is more for convenience to have everything in one account. Correct me if I'm wrong.
Sacramento Kings | San Francisco 49ers | San Francisco Giants | San Jose Sharks | Sacramento Republic FC | Sacramento Rivercats
Reply
Sacramento Kings | San Francisco 49ers | San Francisco Giants | San Jose Sharks | Sacramento Republic FC | Sacramento Rivercats
Reply
post #1147 of 1152

Quote:

Originally Posted by FlyNY View Post

Good info in here

Another scenario for y'all
And this is the position I'm in now

Young dude (under 26), fully vested in 401k. Been with the company 3 years. Thinking about leaving to start with a new company (salary will be higher of course).

What's the smartest thing to do with the 401k? I know rolling it over is always the way to go. But what are your thoughts on withdrawing it upon resigning from my job, and take the cash to use as a DP for a house? And then I start fresh with the new jobs 401k?

Not sure if that even makes any sense or if ppl do that, but what do y'all think?

You should roll it over.

 

There taxes/penalties for early withdrawal.

 

If you REALLY need more $ for DP and are set on using 401k funds:

Roll it over to new job's 401k, take out 401k LOAN (not withdrawal). Standard is you can take out 50% of what's in there. My company has 5% interest rate (that you pay to yourself) for 401k loan and you pick your repayment timeline anywhere from 4 months to 10 years. No taxes or penalties, but a portion of your paycheck will go to paying back your 401k loan.

post #1148 of 1152
Unless it's dire don't withdraw from your retirement account.

Only time I would do it outside of absolute necessity is if you are investing in something else that will outperform it.
Team Mopar
"Mother warned me that there would be men like you driving cars like that."
Reply
Team Mopar
"Mother warned me that there would be men like you driving cars like that."
Reply
post #1149 of 1152
Quote:
Originally Posted by Pdino View Post

Quote:
You should roll it over.

There taxes/penalties for early withdrawal.

If you REALLY need more $ for DP and are set on using 401k funds:
Roll it over to new job's 401k, take out 401k LOAN (not withdrawal). Standard is you can take out 50% of what's in there. My company has 5% interest rate (that you pay to yourself) for 401k loan and you pick your repayment timeline anywhere from 4 months to 10 years. No taxes or penalties, but a portion of your paycheck will go to paying back your 401k loan.

On the loan idea, paying it back to yourself, I'd add you're also missing out on potential gains / compounding interest... that's why we putting this money in there at a somewhat young age, let time work in our favor, but it can't do that if it's taken out
post #1150 of 1152
Quote:
Originally Posted by Antidope View Post

Best interest rate I've seen is at Santander bank. 1.20% interest rate if you keep the balance above 10k, 0.30% if it drops below that.

 

Great Lakes Credit Union offers 3.0% on up to $10k

 

https://www.glcu.org/accounts/personal/checking/ultimate-checking/

 

 

Have to do some things (like use your debit card 10x per month, but you can buy 1 pack of gum in 10 different purchases) but its better than most


Looking for Yeezy v2 Beluga or Breds - Size 9

 

- ^^ will trade green or white stripe v2 towards either ^^

 

Anyone want my DS sz9 Night Cargos or sz9 Oreo UBs?  

 

WTT my Space Jam sz9.5 for...

Reply


Looking for Yeezy v2 Beluga or Breds - Size 9

 

- ^^ will trade green or white stripe v2 towards either ^^

 

Anyone want my DS sz9 Night Cargos or sz9 Oreo UBs?  

 

WTT my Space Jam sz9.5 for...

Reply
post #1151 of 1152
Quote:
Originally Posted by turbospartan View Post

Quote:
Originally Posted by Antidope View Post

Best interest rate I've seen is at Santander bank. 1.20% interest rate if you keep the balance above 10k, 0.30% if it drops below that.

Great Lakes Credit Union offers 3.0% on up to $10k

https://www.glcu.org/accounts/personal/checking/ultimate-checking/


Have to do some things (like use your debit card 10x per month, but you can buy 1 pack of gum in 10 different purchases) but its better than most
Sheesh that's wild. What is the yield above 10k though?

I don't ever use my debit card, it's been years. I use my credit card and pay it off in full every month but this is something I'd consider for a piece.

San Antonio Spurs: MCMXCIX, MMIII, MMV, MMVII, MMXIV


I Never Cried When _____ Died, But I Definitely Will When Hov Does

Reply

San Antonio Spurs: MCMXCIX, MMIII, MMV, MMVII, MMXIV


I Never Cried When _____ Died, But I Definitely Will When Hov Does

Reply
post #1152 of 1152
Quote:
Originally Posted by Antidope View Post


Sheesh that's wild. What is the yield above 10k though?

I don't ever use my debit card, it's been years. I use my credit card and pay it off in full every month but this is something I'd consider for a piece.

 

Don't think its anywhere near as good once you go above $10k.  

 

But it'd be a nice spot to park an emergency fund or what not, if you could manage the "rules" 


Looking for Yeezy v2 Beluga or Breds - Size 9

 

- ^^ will trade green or white stripe v2 towards either ^^

 

Anyone want my DS sz9 Night Cargos or sz9 Oreo UBs?  

 

WTT my Space Jam sz9.5 for...

Reply


Looking for Yeezy v2 Beluga or Breds - Size 9

 

- ^^ will trade green or white stripe v2 towards either ^^

 

Anyone want my DS sz9 Night Cargos or sz9 Oreo UBs?  

 

WTT my Space Jam sz9.5 for...

Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General
NikeTalk › NikeTalk Forums › The Lounge › General › NT: Official Personal Finances Thread