Ask dumb questions here!

[Diomedes]

Thanks.

[PhillyPhreak54]

Either 2 or 4

Most of the stations around here have a pump at the station. Or they go to the township headquarters where they have the fleet garage and do it there

[PoopyfaceMcGee]

Thanks.

Financial "advisers" from all walks will be delighted to "help" you.

Basically, the path of least resistance is to leave it where it is, assuming you believe the investment options provided are plenty adequate when compared with the competition.  But rolling it into your new 401k or an IRA really has become a very commonplace event and is surprisingly simple to do.

[Diomedes]

I'm not likely to have a 401k at my next gig, so I need to think about what to do with it.

If I leave it where it is, does my former company still have that money as part of it's pool, or some kind of thing like that?  That is, am I still subject to their penalties/fines etc. even though I no longer work for them?

I'm not looking to withdraw, unless I buy a home.  In fact, I might have to use it if I want to buy a home.  I've gotten out of a lot of debt these past few years but not exactly cash rich for a down payment on a house and I'm getting real tired of paying rent.

[Quasimoto]

Does anyone like me?

[Diomedes]

Financial "advisers" from all walks will be delighted to "help" you.

Yeah, shady folk.  Not looking to get involved with any of those shysters.

[Diomedes]

What happens to my 401k when I quit?

Ha.  Missed this post.  thanks.

[PoopyfaceMcGee]

If I leave it where it is, does my former company still have that money as part of it's pool, or some kind of thing like that?  That is, am I still subject to their penalties/fines etc. even though I no longer work for them?

I'm not looking to withdraw, unless I buy a home.  In fact, I might have to use it if I want to buy a home.  I've gotten out of a lot of debt these past few years but not exactly cash rich for a down payment on a house and I'm getting real tired of paying rent.

401k's are managed by outside financial services firms like Hewitt or Fidelity.  Your former company wouldn't have anything to do with your money.  Penalties for early withdraw are government-mandated and again have nothing to do with your former company.

Home ownership has a lot more positives than negatives in my experience, but that's really easy to say when I live somewhere you get a lot more house for your money.  Anyway, at least you do gain value in a house when living there,  and mortgage interest isn't a complete loss... as it reduces your tax liability significantly.

[Father Demon]

Read this this week somewhere:

Average networth of renters (US wide):  ~$5K
Average networkth of homeowners (US wide):  ~$180K

That siad, in my opinion it isn't wise to cash out of a 401k to finance a downpayment.  Not only do you have tax consequenses and penalties, but you miss out on the next 25 - 40 years of compound growth. 

Second, I don't think it's difficult to find a 5% or even less money down mortgage, provided your credit is pretty good.  google

I would agree that home ownership really is a catalyst to helping provide for your future.  Good luck with your decision, whichever you choose.

[Seabiscuit36]

if your buying cables for TV's buy them from www.monoprice.com  Great prices for basically the same wires as Monstercables but without all the Glitz.  I got 25 feet of HDMI for 24bucks

[PoopyfaceMcGee]

if your buying cables for TV's buy them from www.monoprice.com  Great prices for basically the same wires as Monstercables but without all the Glitz.  I got 25 feet of HDMI for 24bucks

Allow me to retort with a dumb question:

Where's the dumb question in that post?

[Seabiscuit36]

This goes back to the questions about cables, i saved a boatload of money figured i'd share. 

[Diomedes]

Ya, I'm not jumping into anything.  There are drawbacks to both.  I have little savings as I've been dumping money into debt.  I've eliminated almost all of it, but have little to show for it.  My credit ain't great either--I didn't get into debt smartly.  Also, I haven't used any consumer credit at all for about five years, so while I've been paying down my debts, I haven't been creating new, good credit.  Nor do I plan to.  It's a racket/game I don't care to play.

The compound interest is the only reason I wouldn't take the money and put it towards a house.  The 30% tax/penalty hit is not easy to swallow, but more than worth it to be able to buy a home before 2015. 

I'm probably going to take a huge pay cut in my next job.  Question is:  what's more valuable to me in the long run, owning a home or letting 40k worth of 401k money compound over the years?  Not an easy question.

[PoopyfaceMcGee]

This goes back to the questions about cables, i saved a boatload of money figured i'd share. 

I hate Geico.  Anytime someone says anything about saving money, I think of those damn commercials.

[Cerevant]

That siad, in my opinion it isn't wise to cash out of a 401k to finance a downpayment.  Not only do you have tax consequenses and penalties, but you miss out on the next 25 - 40 years of compound growth. 

Not entirely true:

One of those loopholes applies to first-time homebuyers. The 1997 Taxpayer Relief Act allows you to withdraw up to $10,000 penalty free - once in your lifetime -- from your traditional or Roth IRA for a purchase of a new home, as long as you are a first-time homebuyer or haven't purchased a home in at least two years.

Yes, you still have to pay taxes on the money, but if you buy early in the year, your mortgage interest deduction will offset that extra cost significantly.

Yes, you lose the long term benefit of the investment, but if you don't use the money you may end up paying extra interest (The 15 part of an 80-15-5 is lent at a higher rate) and/or mortgage insurance.  It isn't a cut and dry decision - do the math, or get some help from an accountant.