- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Short Term Investment
Posted on 5/8/12 at 2:41 pm
Posted on 5/8/12 at 2:41 pm
Unfortunately, I'll be cashing out my 401K in a couple months as I leave my job to head back to school. Since I've decided to do this 10 months ago, I've been managing the heck out of it and doing well considering the crappy funds they've made available to us through ING. I'm looking at a 10% return since the start of the year. I'm pulling all my money in three months to pay off debt.
I recently changed my funds from an ING based service fund to Technology based fund that's seen considerable more growth 15% YTD at half the price of the shares I own now. The risk is considerably high but the funds had a decent return even in its worst months.
So basically I'm looking to maximize return over the short period. Are technology mid/large cap stock based funds the right strategy at the moment? They've been doing consistently better it seems over the past 6 months.
I recently changed my funds from an ING based service fund to Technology based fund that's seen considerable more growth 15% YTD at half the price of the shares I own now. The risk is considerably high but the funds had a decent return even in its worst months.
So basically I'm looking to maximize return over the short period. Are technology mid/large cap stock based funds the right strategy at the moment? They've been doing consistently better it seems over the past 6 months.
4
Posted on 5/8/12 at 2:47 pm to Cajun Revolution
quote:
I'm looking to maximize return over the short period. Are technology mid/large cap stock based funds the right strategy at the moment?
Over a six month horizon? Your guess is as good as anyone else's.
Why do you have to cash out your 401?
Posted on 5/8/12 at 2:51 pm to foshizzle
Only way I can get out from underneath my debt to go back to school. I'm 26 and I'll more than make up the amount I have in there by going back to school.
Posted on 5/8/12 at 2:51 pm to Cajun Revolution
That's a big bet on yourself and I'm guessing student loans aren't an option. People say stocks do well in election years...but I just read to much gloom and doom.
Pick your # and just walk away. If you're $5K away from your #, when you cash out just go put $5K on ODD, or BLACK. Good luck.
Pick your # and just walk away. If you're $5K away from your #, when you cash out just go put $5K on ODD, or BLACK. Good luck.
Posted on 5/8/12 at 2:53 pm to Cajun Revolution
quote:
Only way I can get out from underneath my debt to go back to school. I'm 26 and I'll more than make up the amount I have in there by going back to school.
With that said, just do it. Not like you have over $200K in there or anything. Plenty of earning years left if you plan on working til 70. I'd like to retire at 45.
Posted on 5/8/12 at 2:56 pm to ByDaBook
Dude, my 30K ain't making me rich. 
my projected retirement income is like $66 bucks a month trust me, I'll work 30 years after school and retire at 60.
my projected retirement income is like $66 bucks a month trust me, I'll work 30 years after school and retire at 60.Posted on 5/8/12 at 2:56 pm to Cajun Revolution
If your debt involves credit cards, can you just request a rate reduction instead? Or instead of cashing out, get a loan from your 401(k) for the lower rate?
Posted on 5/8/12 at 3:02 pm to foshizzle
I've got $15K in credit card debt I want to get out from under.
That way I'll just have school loan (200/mo), car note ($399) and living expenses. Nothing else.
The money I get paid now isn't allowing me to get out from under anything.
That way I'll just have school loan (200/mo), car note ($399) and living expenses. Nothing else.
The money I get paid now isn't allowing me to get out from under anything.
This post was edited on 5/8/12 at 3:03 pm
Posted on 5/8/12 at 3:12 pm to Cajun Revolution
You did your homework I'm sure, so you realize the 10% penalty and tax on gains. $15K in credit card debt is NOTHING (sounds bad, but it's true). With $30K (not bad for your age), you should be able to take a loan against it and kill the debt service on the credit card.
Have you tried modeling a loan from your 401K? I took a $26K loan out of mine last year to put on a house. You got to pay it back, but interest is low.
Best decision would be to take the loan, payoff the credit card (and cut it up), then get a job while in school (maybe a student worker for the state or something). Or you could just sell the car and buy a beater...then just work part time.
Have you tried modeling a loan from your 401K? I took a $26K loan out of mine last year to put on a house. You got to pay it back, but interest is low.
Best decision would be to take the loan, payoff the credit card (and cut it up), then get a job while in school (maybe a student worker for the state or something). Or you could just sell the car and buy a beater...then just work part time.
Posted on 5/8/12 at 3:19 pm to Cajun Revolution
The way I am reading this is you are about to go back to school. This will defer your other student loan payments. Take out as many new student loans as you need to pay the credit card debt first and car note second. Then, withdraw from your 401k to cover the cost of tuition which would prevent you from paying the 10% penalty. Don't take the money from the 401k until 2013 when you will not have other income which should lower the income tax hit, and you would also have tuition credits to offset the income tax.
Posted on 5/8/12 at 3:45 pm to Cajun Revolution
quote:
I've got $15K in credit card debt I want to get out from under.
Understood, but the penalties for early withdrawal aren't any better than typical credit card rates. Seriously, I would look into 1) asking cards for a rate reduction, they will often do that if you're current, and/or 2) a 401 loan.
Posted on 5/8/12 at 3:58 pm to tigeralum06
quote:
The way I am reading this is you are about to go back to school. This will defer your other student loan payments. Take out as many new student loans as you need to pay the credit card debt first and car note second. Then, withdraw from your 401k to cover the cost of tuition which would prevent you from paying the 10% penalty. Don't take the money from the 401k until 2013 when you will not have other income which should lower the income tax hit, and you would also have tuition credits to offset the income tax.
This dood sounds like he knows what he's talking about.
Posted on 5/8/12 at 4:28 pm to tigeralum06
quote:
The way I am reading this is you are about to go back to school. This will defer your other student loan payments. Take out as many new student loans as you need to pay the credit card debt first and car note second. Then, withdraw from your 401k to cover the cost of tuition which would prevent you from paying the 10% penalty. Don't take the money from the 401k until 2013 when you will not have other income which should lower the income tax hit, and you would also have tuition credits to offset the income tax.
Yes, I like this solution also.
Posted on 5/8/12 at 5:14 pm to TheHiddenFlask
Im really good at being in debt.
Posted on 5/8/12 at 6:24 pm to ByDaBook
quote:Didn't work out so well in '08, best as I can remember
People say stocks do well in election years...
Posted on 5/8/12 at 6:47 pm to Cajun Revolution
If your time frame is truly "a couple of months," you shouldn't be investing in anything.
Money markets, short-term CDs, etc. You can't risk losing money as you have no time to recover.
Money markets, short-term CDs, etc. You can't risk losing money as you have no time to recover.
Posted on 5/8/12 at 6:53 pm to tigeralum06
quote:
Then, withdraw from your 401k to cover the cost of tuition which would prevent you from paying the 10% penalty.
I am fairly certain he could not borrow from his 401k post separation from his employer, and if he borrowed prior to quitting the loan would come due in 60-90 days. If the 401k was rolled to a TIRA before these machinations it would be a different story for qualified expenses. It's the little things that will trip you up.
Posted on 5/8/12 at 7:54 pm to tirebiter
I suggested he withdraw from the account not borrow from it.
Posted on 5/9/12 at 9:19 am to NC_Tigah
quote:
Didn't work out so well in '08, best as I can remember
I stand corrected...another example of not believing everything you hear and importance of doing your homework. Found a Forbes study on the myth that stocks always rise in election year...just a myth...
"Conclusion: The market was up in 68% of years overall, and 67% in election years. So, whether it was an election year or not had no effect on the market’s performance."
Posted on 5/9/12 at 9:27 am to NC_Tigah
People will ascribe anything to an election year to help convince them their political stance is "correct."
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News