401k (discussion)

[B16a2 Civic]

Fidelity, I took a $5000 disbursement like two years ago and it was the dumbest thing I could have done.. taxed at 10% AND I would have had well over $20k by now had I not taken that out.

I'm about to take a loan out but its for my business, and I will pay it back promptly.

yeah, i believe when you take a loan out on it for buisness, house loan or hardship, they dont tax as much or the interest rate to pay it back isn't as high, i forgot which.
i was going to get a loan through my 401k, but ended up going through a credit union.
To be honest, alot of people dont look at the big picture when it comes to 401k, my friends ( my age or younger) always say " i'll be old, what will i need money for".
i think 401k's are one of the best systems out there, weather its trying to save money or always having that something to fall back on, just in case

[SniperJoe]

i think 401k's are one of the best systems out there, weather its trying to save money or always having that something to fall back on, just in case

Actually, I typically only recommend that people put the maximum amount that the company will match into a 401k. From a tax viewpoint, there are many more advantageous vehicles that will result in you paying less taxes long term. In addition to this I don't want ANY of you to view this as "fallback" money. You want to have a dedicated cash reserve of 3 to 6 months of living expenses somewhere easily accessible such as a money market account.