I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
Thank you for this. Straightforward, with practical tips for us to take into consideration. As a millennial myself, this was much needed as I’m trying to figure out what to do with my finances! You got yourself a new subscriber.
I view 401k as an uncertain future. Sure i can put a ton of money into it and reap some benifits after retirement, but what about now when im barely getting by?
Thank you for the question. Literally woke up with the question as an option in my current plans. I researched in RUclips and your video was the first that popped up. Perfect timing
I started at this company 13 months ago Exactly and they were the first with a 401K option. I’m 21, was 20 at the time. I have a lil over $14,000 in there now. My plan since the beginning was to invest 15% of each paycheck into my 401k to save for a house without even know how to take it out. From my understand so far (haven’t watched the full video), I can only take out 50% for a down payment. Idk what to think about this lol I have to wait longer to buy a house now
So many penalties when taking from your 401K early!! You won’t be able to take the full without getting hit hard with penalties! Use a different way to save for buying a home!!!
Look into your account more and see the options you have available. You could always take a loan on your 401k depending on how much you need for a down payment. You wont get hit with a 10% withdrawal fee and taxes. But when your doing that your also selling your shares of investments so as long as you got positive gains you didnt lose money. And the interest you pay back on the loan goes back into your account. But if you go that route make sure it doesnt affect your company match, some companies wont match when you have a loan taken out but some still will. Just make sure to pay it back or get it automatically withdrawn from your paycheck. And you could also lower your contribution percentage to make up for the extra payment. And also make sure your solid and content with the company because if you separate from the company you might have to pay it back at a faster time span. Some companies allow you to do 60 months to pay back your loan. Just my two cents if your really trying to buy a house. You never really want to touch your 401k but to purchase a house at your age its just another good investment, property value will always increase with time and you'll lock in a payment that wont increase dramatically with housing value going up.
I had a 401k. After I quit, I rolled it into an IRA. Can I turn that into a Self Directed IRA now? I’m a realtor now and I want to invest all my money into RE instead of the stock market.
My 401k is just sitting there, fluctuating with the market. Does the self-directed 401 have to be offered as an option? I was told it could only be rolled over.
I'm watching your video at 7:03 am. on Monday, July 15,2024. So, with that said. I'm a 59 year old woman in the process of buying my 1st year in 20 years. What are you? your thoughts, please
I just did it for my home, my broker would not let me borrow from it I had to first take out a loan. I would say go over your options with them before you start looking if you haven't already
MG is definitely a Mortgage guy, so I can understand if he makes a few incorrect statements about 401Ks. So I want to clear some things up. Yes, the money in the 401K is your money. But taking that money out can be expensive if not done correctly. The money in your 401K can be withdrawn either with a loan or a withdrawal. If you take out as a loan, there will be interest added, and that loan has to be paid back in full if you leave the company before it’s paid off. If you take the money out as a withdrawal, you’ll have to pay a 10% fee, plus you’ll be taxed on the amount you withdrew as income.
That’s not entirely true, you can pull out with no withdrawal fee if used properly in purchasing a home. You can take $10,000 or half your vested account whichever is more. It’s actually fairly simple to prove a financial hardship as well.
I had to use my 401K to avoid losing our second attempt at buying a home. Merril Lynch would not let me use the money as a hardship, I had to take out a loan at 8%
Did he say it's at zero percent @4:28 interest? I figured it's 1 to 2 % above prime rate and prime rate in Nov 2023 was 8.5% so isn't 401K loan would stand at 10% plus rate and this video is a year old from June 2024 so it cannot be that off ??
Eh, except it’s not a cheap loan. If you withdraw you get hit with your current tax rate + 10%. So really it’s a 25-35% loan for most people. You’d be better off actually loaning against your 401K, or just not putting into it all opposed to going this route just to lose 30% of it.
This is something I tussled with however if I wait until my retirement I'll definitely be paying as much as 30% or more in taxes where as now if I invest it in real estate the property will appreciate over time
Super easy to diversify whats in your 401k and choose what your money is going into. People just need to read into and choose what they want their money to do. Dont be lazy.
Is for the down payment and theres no penalty for loans. You also pay the interest to yourself back. The downside is if the market recovers your money is not invested
Wow 😯 I thought I was the only one who knows Mrs Charlotte Walsh. I have also been trading with her, she's such an amazing woman with good skills keeps me happy all week knowing I earn $15,000 extra income trading with her.
By listening to you both I feel neither of you have any complex knowledge of micro or macro economics , compounding and derivatives. You use a lot of cliches and repeat words. I wish you can put more intelligent content
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@rachealhubert74 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@rachealhubert74 I will give this a look, thanks a bunch for sharing.
I've seen your same comment in other videos. Is this a robot chat?
I seen this on different financial channel same comment is a scam don’t go into it.
Don’t stop working
Starts at 2:30
Thank you for this. Straightforward, with practical tips for us to take into consideration. As a millennial myself, this was much needed as I’m trying to figure out what to do with my finances! You got yourself a new subscriber.
I view 401k as an uncertain future. Sure i can put a ton of money into it and reap some benifits after retirement, but what about now when im barely getting by?
Then reduce the amount that you contribute. It’s not rocket science…
Thank you for the question. Literally woke up with the question as an option in my current plans. I researched in RUclips and your video was the first that popped up. Perfect timing
I started at this company 13 months ago Exactly and they were the first with a 401K option. I’m 21, was 20 at the time. I have a lil over $14,000 in there now. My plan since the beginning was to invest 15% of each paycheck into my 401k to save for a house without even know how to take it out. From my understand so far (haven’t watched the full video), I can only take out 50% for a down payment. Idk what to think about this lol I have to wait longer to buy a house now
Why would you use a 401k as a savings account?
So many penalties when taking from your 401K early!! You won’t be able to take the full without getting hit hard with penalties! Use a different way to save for buying a home!!!
Look into your account more and see the options you have available. You could always take a loan on your 401k depending on how much you need for a down payment. You wont get hit with a 10% withdrawal fee and taxes. But when your doing that your also selling your shares of investments so as long as you got positive gains you didnt lose money. And the interest you pay back on the loan goes back into your account. But if you go that route make sure it doesnt affect your company match, some companies wont match when you have a loan taken out but some still will. Just make sure to pay it back or get it automatically withdrawn from your paycheck. And you could also lower your contribution percentage to make up for the extra payment. And also make sure your solid and content with the company because if you separate from the company you might have to pay it back at a faster time span. Some companies allow you to do 60 months to pay back your loan. Just my two cents if your really trying to buy a house. You never really want to touch your 401k but to purchase a house at your age its just another good investment, property value will always increase with time and you'll lock in a payment that wont increase dramatically with housing value going up.
Do you have a video on creating an LLC and how to purchase property under it.. financing such purchase, etc?
I had a 401k. After I quit, I rolled it into an IRA.
Can I turn that into a Self Directed IRA now?
I’m a realtor now and I want to invest all my money into RE instead of the stock market.
My 401k is just sitting there, fluctuating with the market. Does the self-directed 401 have to be offered as an option? I was told it could only be rolled over.
Lets work together
I'm watching your video at 7:03 am. on Monday, July 15,2024. So, with that said. I'm a 59 year old woman in the process of buying my 1st year in 20 years. What are you? your thoughts, please
Love this guy MG! Appreciate the format and absolutely appreciate the topic. Tapping into my 401k when the prices drop this year
I just did it for my home, my broker would not let me borrow from it I had to first take out a loan. I would say go over your options with them before you start looking if you haven't already
But I always heard that you can withdraw up to 20k from your 401k for your first home downpaynent without penalty. Is this not a thing anymore?
MG is definitely a Mortgage guy, so I can understand if he makes a few incorrect statements about 401Ks. So I want to clear some things up. Yes, the money in the 401K is your money. But taking that money out can be expensive if not done correctly. The money in your 401K can be withdrawn either with a loan or a withdrawal. If you take out as a loan, there will be interest added, and that loan has to be paid back in full if you leave the company before it’s paid off. If you take the money out as a withdrawal, you’ll have to pay a 10% fee, plus you’ll be taxed on the amount you withdrew as income.
Yup, that is Facts
That’s not entirely true, you can pull out with no withdrawal fee if used properly in purchasing a home. You can take $10,000 or half your vested account whichever is more. It’s actually fairly simple to prove a financial hardship as well.
Iam 59 and 8 months. Do I get penalize if I take it out for a downpayment???
I had to use my 401K to avoid losing our second attempt at buying a home. Merril Lynch would not let me use the money as a hardship, I had to take out a loan at 8%
“‘Manage your own destiny!” 🙌🏽 come on, Matt! Speaking my language
Did he say it's at zero percent @4:28 interest? I figured it's 1 to 2 % above prime rate and prime rate in Nov 2023 was 8.5% so isn't 401K loan would stand at 10% plus rate and this video is a year old from June 2024 so it cannot be that off ??
Eh, except it’s not a cheap loan. If you withdraw you get hit with your current tax rate + 10%. So really it’s a 25-35% loan for most people. You’d be better off actually loaning against your 401K, or just not putting into it all opposed to going this route just to lose 30% of it.
This is something I tussled with however if I wait until my retirement I'll definitely be paying as much as 30% or more in taxes where as now if I invest it in real estate the property will appreciate over time
you can take 10K for 1st time home buy tax free. but your right they are borrowing at 35% if your working.
Future topic - creating a trust/living will and benefits etc.
We released those videos on the channel last week 🙌
Sabine has been on with MG many times about trusts and asset protection.
Yep check the playlist they covered this last week
Agree.
Great content!
Super easy to diversify whats in your 401k and choose what your money is going into. People just need to read into and choose what they want their money to do. Dont be lazy.
This guy is full of it. Put what you can inn your 401k and your Roth.
How soon does it need to be repayed?
Subscribed!
Needed this video.
Thank you all for this question this was good
Thank you so much!!!!😮
Great advice!
Glad it was helpful!
Thank you
There’s a 10-35%
Sure get the money from your 401K and pay a 35% penalty 😂 It is actually cheaper to get a 5% mortage
Is for the down payment and theres no penalty for loans. You also pay the interest to yourself back. The downside is if the market recovers your money is not invested
Saludos Nuevo Miembro su Canal RUclips klk vamos al Mambo 🏡📈🇺🇸😎💰🇩🇴🏝️
She’s cute
The best decision I ever made in my life was investing in the crypto market. Trust me guys, it really pays a lot!
Same here, I earn $17,000 a week.God bless Mrs Charlotte, she has been a blessing to my family.
Oh please, how can someone get to speak with Mrs Charlotte Junko Walsh !!?
Wow 😯 I thought I was the only one who knows Mrs Charlotte Walsh. I have also been trading with her, she's such an amazing woman with good skills keeps me happy all week knowing I earn $15,000 extra income trading with her.
@Marilyn Beverly Thanks a lot I just sent her a message and
she responded nicely..
Scammers lol
By listening to you both I feel neither of you have any complex knowledge of micro or macro economics , compounding and derivatives. You use a lot of cliches and repeat words. I wish you can put more intelligent content