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Originally Posted by vkmaster
Also, if memory serves me correctly, in either Roth or IRA...if you take out ANY money before retirement age, some of that becomes taxable plus a 10% penalty.
I would suppose any post-tax contributions would not be subject to income tax, if you withdraw early...i.e. Roth contributions??
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There are however certain qualified retirement plans (401K an example) or whole life insurance policies where you can "borrow" from yourself without paying a penalty. I would consult your advisor or the plan administrator.
I know many a college education that has been paid for in this way.
Quote:
Originally Posted by atlcomedy
on the otherhand if it means eating Ramen Noodles never pass up a company match if it is significant
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I'll reiterate my good advice about never passing up a match in something like a 401k....
I'd try to make it work by avoiding taking on debt but even if you have to carry a credit card balance the numbers work.
To keep it real simple if the company will match you 50 cents on the dollar (up to a certain amount) that is a 50% return off the bat, which, unless you are borrowing from Paulie Walnuts borrowing works.
Not to mention it (usually) lowers you short term tax bill
Quote:
Originally Posted by TexTushHog
PJ has hit the highlights and is correct. However, investment tax advise is a mildly complex topic. You have to evaluate IRA options, and various other types of options depending on your circumstance. Plus you have the question of what underlying investment you want to hold in whatever account that you set up.
If you really have "a nice bit" put aside, go see a professional investment adviser. Find one that is recommended by someone who is knowledgeable about money as there are probably at least as many bad ones as good ones. But if you can find a good one, it is a very valuable asset for someone who isn't good with money or up to date on tax law. You might start by asking your accountant. If you don't have an accountant, you might start asking your knowledgeable friends for a recommendation on an accountant, too.
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Ask your brother-in-law for a reco.
Don't ask your brother-in-law that is a financial advisor to be your financial advisor (even if you like the guy and actually think he's a capable guy)
