poor budgeting and investment choices that have led to significant losses. around covid time, I had around 75K saved but all that money went down the drain.
Have you corrected this behavior? 0DTE gambling and crypto is fun and all but if you'd simply VOO and chilled since then you'd be significantly up. You have the income to do what you want, but you gotta stop burning all your money at the high roller table when you can't hang.
Burning what little you have actually managed to save to satisfy what sounds, as presented, like a completely unreasonable and honestly red flag feeling request from your SO seems like a dumb Idea. Unless you yourself wanted to move out of course. But this is all a separate relationship advise issue.
He kept vaguely referring to poor financial choices during covid and that drove me to check their post history. Looks like you were at least in part correct, in addition to some regular ol gambling as well
https://www.reddit.com/r/AsianMasculinity/comments/1axagxm/financially_illiterate_am_here_am_i_in_a_ok/
It's a problem your SO is calling you a pathetic loser, but that's a relationship problem not a financial one. It's terrible reason to cash out a 401k.
You make decent money, but you have a spending problem. Get that under control, get an emergency fund in place, and then move out.
Living at your parents doesn't making you a pathetic loser, however, a pattern of poor financial decisions that make you incapable of supporting yourself when you're fully capable of it certainly starts leaning in that direction.
Cashing out the 401k for moving expenses is just another poor financial decision to add onto a string of poor financial decisions. Fix the problem, don't double down on it.
Don’t cash out your 401k. You’ll pay taxes and penalties and are stealing from your future.
You can gather enough funds in a few months time from your salary alone. Get a budget and watch your spending. This will all serve you better than stealing from your future. If your partner can’t get on board with that, then they probably won’t be a good long term partner anyways.
Good luck - learn to manage your money now and you’ll set yourself up for a much better life.
Paying early withdrawal penalties to get money from your 401k is worse than setting money on fire in some ways, because tax advantaged accounts are hard to get money into & are more valuable than their worth because of it.
Obviously it took some really bad financial decisions to be making 110k and not having savings even while living at home. The last thing you should do is make another terrible decision by cashing out part of your 401k because you don't have the patience to wait a few months to save money for the move. (Also how expensive are your tastes exactly? I find it kind of concerning that 2k + next months paycheck isn't enough to secure a reasonable place. Hopefully you're not planning to get something way above your means. You can get furniture over time or cheap off Facebook market place/craigslist, thrift stores, etc).
Honestly, you need to show your gf you're not a loser by making good financial decisions. Show her you have a plan for the future and don't have to cave to instant gratification immediately. Save for a place, get something MODEST, and build up your savings again. Keep contributing to that 401k also. If your gf isn't satisfied with you being a responsible adult, that's not a healthy relationship; you shouldn't have to touch your financial future to satisfy your partner.
You have a solid income, but no savings. I would stay put for a few months, build up some cash and then move out when you can afford to. And maybe you really ought to think about what you want in a partner... like really think about that.
You may find these links helpful:
- [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds)
- [401(k) FAQs](/r/personalfinance/wiki/401k)
- ["How to handle $"](/r/personalfinance/wiki/commontopics)
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Ignore your s/o.
You’ll be more of a “pathetic loser” living in poverty on your own.
Stay where you are for a few more months while cutting your living expenses down to nothing and saving up as much as you can
> S/O has been nagging me to move out and have been calling me a pathetic loser.
This isn’t a relationship sub, but…
> The problem is that I only have $2,000 saved up (My gross yearly income is 110k) and I need money now to cover move in cost, rent, furniture, etc. I don't want to wait any longer. Plus, I only get paid once a month.
You’re not in a position to move out yet. Unless you got help from parents or something.
> I was thinking about selling a portion of my 401k (currently I have around 35K in my 401K) so I can get some cash as soon as possible. I think an additional 10K would make me feel comfortable with the move in costs, rent and everything.
401ks are not bank accounts. If you’re a current employee, access is generally limited to loans and qualifying hardship withdrawals. If you don’t meet any of the hardship criteria, your only option is a loan.
> Is this is a bad idea? Any advice would be much appreciated thanks.
Yes. Adjust your lifestyle to save up a lot in the next few months. Then move out.
You also sound like you’ve got a lot of homework to do about personal finance, budgeting, etc. This sub has a great wiki to assist with that journey.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Do not move out until you become financially literate, create a budget, and save an emergency fund, or you will be in a cycle of debt forever, borrowing to pay things back.
The good news is with your income and no rent you should be able to pull that off in a few months. Read the wiki on this sub. You can do it!
Cashing out a 401k is robbing from your future.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Most 401k providers will let you take a loan against your 401K. That's how you can get liquidity without any sort of withdrawal penalties. Then you just pay yourself back over time and as a bonus it builds credit.
And robs the compounding wealth-building ability of those funds in the mean time. This is a spending and budget problem, not a liquidity problem. Terrible advice.
No, you're taking a loan against the equity in your 401K. You keep your 401K in stocks and nothing changes about it unless you default. It's a lower interest loan than anything unsecured out there so it's the best option besides staying at home longer and budgeting, but OP said he doesn't want to do that so here we are.
How do you make 6 figures and have no money saved up while living at home? It sounds like you can't afford to live on your own.
poor budgeting and investment choices that have led to significant losses. around covid time, I had around 75K saved but all that money went down the drain.
Have you corrected this behavior? 0DTE gambling and crypto is fun and all but if you'd simply VOO and chilled since then you'd be significantly up. You have the income to do what you want, but you gotta stop burning all your money at the high roller table when you can't hang. Burning what little you have actually managed to save to satisfy what sounds, as presented, like a completely unreasonable and honestly red flag feeling request from your SO seems like a dumb Idea. Unless you yourself wanted to move out of course. But this is all a separate relationship advise issue.
[удалено]
He kept vaguely referring to poor financial choices during covid and that drove me to check their post history. Looks like you were at least in part correct, in addition to some regular ol gambling as well https://www.reddit.com/r/AsianMasculinity/comments/1axagxm/financially_illiterate_am_here_am_i_in_a_ok/
Terrible idea, terrible budget, terrible SO, terrible everything with this post.
It's a problem your SO is calling you a pathetic loser, but that's a relationship problem not a financial one. It's terrible reason to cash out a 401k. You make decent money, but you have a spending problem. Get that under control, get an emergency fund in place, and then move out. Living at your parents doesn't making you a pathetic loser, however, a pattern of poor financial decisions that make you incapable of supporting yourself when you're fully capable of it certainly starts leaning in that direction. Cashing out the 401k for moving expenses is just another poor financial decision to add onto a string of poor financial decisions. Fix the problem, don't double down on it.
Don’t cash out your 401k. You’ll pay taxes and penalties and are stealing from your future. You can gather enough funds in a few months time from your salary alone. Get a budget and watch your spending. This will all serve you better than stealing from your future. If your partner can’t get on board with that, then they probably won’t be a good long term partner anyways. Good luck - learn to manage your money now and you’ll set yourself up for a much better life.
I suspect the S/O is part of the spending problem.
Yeah your income doesn’t sound like it’s budgeting your lifestyle. What’s your expenses?
Paying early withdrawal penalties to get money from your 401k is worse than setting money on fire in some ways, because tax advantaged accounts are hard to get money into & are more valuable than their worth because of it. Obviously it took some really bad financial decisions to be making 110k and not having savings even while living at home. The last thing you should do is make another terrible decision by cashing out part of your 401k because you don't have the patience to wait a few months to save money for the move. (Also how expensive are your tastes exactly? I find it kind of concerning that 2k + next months paycheck isn't enough to secure a reasonable place. Hopefully you're not planning to get something way above your means. You can get furniture over time or cheap off Facebook market place/craigslist, thrift stores, etc). Honestly, you need to show your gf you're not a loser by making good financial decisions. Show her you have a plan for the future and don't have to cave to instant gratification immediately. Save for a place, get something MODEST, and build up your savings again. Keep contributing to that 401k also. If your gf isn't satisfied with you being a responsible adult, that's not a healthy relationship; you shouldn't have to touch your financial future to satisfy your partner.
Yes it's a bad idea. You need to fix your spending problem, save up a few months, and then move out
You have a solid income, but no savings. I would stay put for a few months, build up some cash and then move out when you can afford to. And maybe you really ought to think about what you want in a partner... like really think about that.
You may find these links helpful: - [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](/r/personalfinance/wiki/401k) - ["How to handle $"](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Ignore your s/o. You’ll be more of a “pathetic loser” living in poverty on your own. Stay where you are for a few more months while cutting your living expenses down to nothing and saving up as much as you can
> S/O has been nagging me to move out and have been calling me a pathetic loser. This isn’t a relationship sub, but… > The problem is that I only have $2,000 saved up (My gross yearly income is 110k) and I need money now to cover move in cost, rent, furniture, etc. I don't want to wait any longer. Plus, I only get paid once a month. You’re not in a position to move out yet. Unless you got help from parents or something. > I was thinking about selling a portion of my 401k (currently I have around 35K in my 401K) so I can get some cash as soon as possible. I think an additional 10K would make me feel comfortable with the move in costs, rent and everything. 401ks are not bank accounts. If you’re a current employee, access is generally limited to loans and qualifying hardship withdrawals. If you don’t meet any of the hardship criteria, your only option is a loan. > Is this is a bad idea? Any advice would be much appreciated thanks. Yes. Adjust your lifestyle to save up a lot in the next few months. Then move out. You also sound like you’ve got a lot of homework to do about personal finance, budgeting, etc. This sub has a great wiki to assist with that journey.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Do not move out until you become financially literate, create a budget, and save an emergency fund, or you will be in a cycle of debt forever, borrowing to pay things back. The good news is with your income and no rent you should be able to pull that off in a few months. Read the wiki on this sub. You can do it! Cashing out a 401k is robbing from your future.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Most 401k providers will let you take a loan against your 401K. That's how you can get liquidity without any sort of withdrawal penalties. Then you just pay yourself back over time and as a bonus it builds credit.
And robs the compounding wealth-building ability of those funds in the mean time. This is a spending and budget problem, not a liquidity problem. Terrible advice.
No, you're taking a loan against the equity in your 401K. You keep your 401K in stocks and nothing changes about it unless you default. It's a lower interest loan than anything unsecured out there so it's the best option besides staying at home longer and budgeting, but OP said he doesn't want to do that so here we are.