Need some financial advice

Discussion in 'Community Discussion' started by SteelBlueTJ, Mar 8, 2014.

  1. SteelBlueTJ macrumors 6502

    Joined:
    Apr 2, 2012
    Location:
    USA
    #1
    I need some advice from some money experts. I recently left my job and started a new job at a different company. I had a 401k plan with my old job, but only have about $9k in there as my balance. I can roll it over into my new plan with my new company or take it out in a lump sum. I also have about $14k left on a student loan with 3% interest. I am tempted to take the lump sum and put it towards the student loan. I know i will loose some from taxes. Not sure what to do. Thanks
     
  2. DDaddyx2 macrumors regular

    DDaddyx2

    Joined:
    Jan 6, 2012
    Location:
    Indianapolis, IN
    #2
    If you take the lump sum then you will have to pay taxes on it immediately. The money you put into the 401k was untaxed. Unless you GOTTA have the money right now, roll it into your new company's 401k or put it into an IRA. Both will keep you from being taxed.
     
  3. Ray Brady macrumors 6502

    Joined:
    Dec 21, 2011
    #3
    Roll it over. You will almost certainly make more than 3% in a halfway decent mutual fund. If you could pay off your entire student loan by cashing out, I could see the appeal of the closure, but it's not worth the tax hit to pay off less than half of it.
     
  4. 4JNA macrumors 68000

    4JNA

    Joined:
    Feb 8, 2006
    Location:
    looking for trash files
    #4
    where are you at, and where do you want to go.

    90% of the time, the above is true.

    i would ask for more info. your age or a range if that is to personal.

    your basic in/out ratio, that is what do you make vs. your monthly expense. how much left...

    what are your options in the new/rollover account, that is are these provider only options, or can you pick your own, and what are the account expenses?

    nothing wrong with the general forum approach, but if you are young and looking for a long term strategy, a CFP or expert might be worth your time/money. just my two cents.
     

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