Wow

[FATHERFORD]

How can someone not be able to easily come up with $1k in cash in an emergency.

[homealone]

I use to keep a grand at the house for impulse buys and bail money. But now I have too many cars and too much crap so I quit doing it.

If it's a normal need some money thing I just run to the ATM. But if society fails and banks go down, I guess I am in trouble.

[BP]

Nope, I'd be screwed. Chase will only let me withdraw $400 a day through their ATMs. I guess I could write a check if I had to.

Either that or I could skip a few mortgage payments and come up with tons of cash before they foreclosed. Or sell my truck or a motorcycle for some quick cash, or do a 401k loan, or sell some of the scrap metal I have stashed, sell some cores I have, some stocks, maybe a TV or two.

If I wanted to do illegal stuff I could sell my ATV to someone out of state and then say it was stolen and collect insurance or file against my homeowner's insurance for hail damage. Or I could strip one of my cars down and sell the parts, then say they were stolen. Heck it'd be easier and safer than robbing a bank.

[mustangguy289]

Nope, I'd be screwed. Chase will only let me withdraw $400 a day through their ATMs. I guess I could write a check if I had to.

Either that or I could skip a few mortgage payments and come up with tons of cash before they foreclosed. Or sell my truck or a motorcycle for some quick cash, or do a 401k loan, or sell some of the scrap metal I have stashed, sell some cores I have, some stocks, maybe a TV or two.

If I wanted to do illegal stuff I could sell my ATV to someone out of state and then say it was stolen and collect insurance or file against my homeowner's insurance for hail damage. Or I could strip one of my cars down and sell the parts, then say they were stolen. Heck it'd be easier and safer than robbing a bank.

I will give you a quick 1,000 for ATV... please grind of vin beforehand. Thanks

[Ruffdaddy]

Tapping the 401k to meet a $1000 unplanned expense doesn't sound like a solid plan.

I would have no problem coming up with just 1K, but I was thinking ahead in terms of a serious emergency. We have had to pull about a grand out of one of our bill accounts to pay for an expensive repair so I know it's not difficult.

However, I have already taken a small 2.5K loan out of my 401K to make an investment purchase and wonder what the harm is there?

[The King]

I would have no problem coming up with just 1K, but I was thinking ahead in terms of a serious emergency. We have had to pull about a grand out of one of our bill accounts to pay for an expensive repair so I know it's not difficult.

However, I have already taken a small 2.5K loan out of my 401K to make an investment purchase and wonder what the harm is there?

You pay tax twice on the 401K earnings from that $2500

[The King]

having a 401k doesn't sound like a solid plan to me............

I does when there is employer matching included.

[mstng86]

You pay tax twice on the 401K earnings from that $2500

Not if it is a loan.

[GhostTX]

if you don't have 1000 in the bank that's kinda sad. I forget the percentage but a lot of people when they hit retirement age have less than 250 in the bank.

$250k...?

[mustangguy289]

Not if it is a loan.

When you take a loan from your 401k.... you pay interest correct? That interest goes back into your 401k correct?

So the only down side is that the money borrowed is not gaining/losing.

[Frank]

How can someone not be able to easily come up with $1k in cash in an emergency.

That's got to be sarcasm. There are plenty of people who scrape by with virtually nothing.

[mstng86]

When you take a loan from your 401k.... you pay interest correct? That interest goes back into your 401k correct?

So the only down side is that the money borrowed is not gaining/losing.

correct.

At least you aren't paying the taxes.

[mustangguy289]

That's got to be sarcasm. There are plenty of people who scrape by with virtually nothing.

Some people are as far removed from normal society as our government. I would not have a problem with the OP's question... but I know plenty of people who do. Some because they don't know how to manage money.. and some because they just don't make enough and have nothing.

[mustangguy289]

correct.

At least you aren't paying the taxes.

Depending on how the market does... you might be better off. I would much rather pay interest to myself than to a bank.

[Ruffdaddy]

My timing was right when things were high, so by luck it worked out. However the repayment is post tax, and I will have to pay tax again when i withdraw...so I guess it's taxed twice?