Money folks, get in here and tell me what you think. I have an old 401k from a previous company that's just sitting there, obviously with no deposits going in. It's about 200K.
I've considered cashing it out and paying off the only 2 things I owe, my house and my truck. I know I will initially get hit for about 60K off the top and that is what has kept me from doing it. I know I'll get hit again the next year when I do my taxes as well.
Back story for info purposes. I'm about to be 54 in March and plan on "retiring" at 63 when my youngest son graduates high school. My wife is ALOT younger than me, so she'll continue to work and carry insurance. That'll be a huge benefit barring that she doesn't pack up and leave one day...lol. I probably have about 175K in another active brokerage account, so the 200K isn't my only retirement money.
I could let it sit and grow, but I'll eventually get hit with taxes regardless, just maybe at a lower rate in the future. I can roll it over into another account, like an IRA or such and let it grow. Or I can go the cashout route and eliminate my 2 biggest bills and my only debt. Sidenote, I plan to sell this house in the next 2 years and buy another ridiculously marked up property. (I'm hoping the interest rates come down significantly too.) The selling of the paid for home will give me clear money to use as a down payment for the new property.
What say you?
I've considered cashing it out and paying off the only 2 things I owe, my house and my truck. I know I will initially get hit for about 60K off the top and that is what has kept me from doing it. I know I'll get hit again the next year when I do my taxes as well.
Back story for info purposes. I'm about to be 54 in March and plan on "retiring" at 63 when my youngest son graduates high school. My wife is ALOT younger than me, so she'll continue to work and carry insurance. That'll be a huge benefit barring that she doesn't pack up and leave one day...lol. I probably have about 175K in another active brokerage account, so the 200K isn't my only retirement money.
I could let it sit and grow, but I'll eventually get hit with taxes regardless, just maybe at a lower rate in the future. I can roll it over into another account, like an IRA or such and let it grow. Or I can go the cashout route and eliminate my 2 biggest bills and my only debt. Sidenote, I plan to sell this house in the next 2 years and buy another ridiculously marked up property. (I'm hoping the interest rates come down significantly too.) The selling of the paid for home will give me clear money to use as a down payment for the new property.
What say you?
