Horrible financial decisions

[Astro14]

For the record, I've borrowed heavily against my 401(k). The max of $50K, in fact. I don't consider this to be a horrible financial move. I didn't use it for a car, or consumer spending.

I used the money to pay my children's tuition as it was the cheapest interest rate I could get to cover those costs.

 

[rjundi]

Originally Posted By: CT8
Time share ! might as well take the cash and burn it.


Isn't time share nothing more then paying for something that in turn costs you more every year and worst can never get rid of since no one else wants it either?

 

[bullwinkle]

Originally Posted By: javacontour
You didn't answer my question in the other thread. Unless the money you lost was in LB stocks and bonds, how did you lose? Did they not have SIPC protection and simply raided your account to cover their shortfalls?

If they did so, SIPC protection should have kicked in. It doesn't cover stock losses, but does cover the investment bank raiding your account for their survival or other purposes.

Originally Posted By: OneEyeJack
Originally Posted By: surfstar

So...
I'm guessing you don't contribute to or have a 401k or IRA, then?
How's that gold buried in your backyard doing?



I did contribute. I followed all the rules and advice. It was all with Lehman Brothers, the 3rd largest bank in the world and it went up in smoke. But don't worry. The institutional investors like Goldman Sachs were protected as were the Lehman Brothers executives that faced no criminal charges and often transferred into government jobs including one Cabinet level position. The politicians told us they were too big to fail so ordinary citizens absorbed the loss. Imagine that.

Tell me, what are the fees applied to your 401K? Ask. See if you get an answer. Does the judgment in the United States Court of Appeals for the Eighth Circuit in St. Louis interest you? I had to do with fees and it took years to sort through all the fees that are charged in 401K plans.
If he had it all in Lehman stock, he likely got burned. I had relatives that lost a nasty chunk in GM stock-thought it could never go under-WRONG!

 

[surfstar]

I've heard it mentioned that you can't borrow for retirement, so its better to let your kids get loans vs not saving enough for yourself.

I'll have to wait and see how I feel about that if/when I have a kid in college.



I'm also interested in the Lehman loss story. Lehman "securities" are what disappeared, mutual funds should have been protected, as others have mentioned.

 

[Bandito440]

The 401k government seizure info wars chemtrails fluoride Obama FEMA reeducation center stuff is probably not a great way of making financial decisions.

The YouTube video linked to earlier is nothing but fearmongering from an investment planner that wants you to buy his investments that are safe from government seizure. Imagine that. He's selling annuities and whole life insurance policies too; both bad choices.

Anyhow, the dollar is strong and my money is going into equities; not annuities, food rations, bunkers, or whatever anyone else is trying to scare up.

 

[hattaresguy]

People should use CC's in retirement, when you turn 70 rack up the bills. When you die they get nothing.

 

[BISCUT]

Originally Posted By: tezzzas
As a college student with crippling student loan debt and a getting a degree in Criminal Justice. I think those are terrible decisions.


I certainly dont mean to be smacking you....but CJ is one of the worst majors to get. It does nothing for your cop career above and beyond any other degree. And ask yourself, If I dont get a cop job, what can I do with my degree?? Anything that any other general degree could have done? Nope....

Think broad my friend....and get to grad school and go MPA or MBA. With those there are a lot of options open to you. Locking in with CJ limits your future. You just don't know where life takes you. No harsh words brotha, I speak from experience. I've been SP and now a city cop for 15yrs. It worked for me but i see the pitfalls if it doesn't work out.

PM if you ever want any advice.

 

[GenesisGuy70]

Originally Posted By: tezzzas
As a college student with crippling student loan debt and a getting a degree in Criminal Justice. I think those are terrible decisions.


I feel you there. Finishing up my bachelor's in healthcare administration this year and I ran the numbers.....97,000.

Ouch.

I'm no money saving guru but I do know that touching your 401K is like shooting yourself in the foot. Especially to buy a timeshare. Sounds like something my parents would do...and they aren't too bright either.

I got myself into a bit of credit card debt trouble a while back. Paid that off finally and I don't hardly use the darn things anymore. I did however break down and buy a new TV through best buy with their store card. 0% for two years. Works for me at this point in life.

Currently working as intern to the CEO of a nearby hospital, so I'm pretty much solid on my future career!

 

[GenesisGuy70]

Originally Posted By: Astro14
For the record, I've borrowed heavily against my 401(k). The max of $50K, in fact. I don't consider this to be a horrible financial move. I didn't use it for a car, or consumer spending.

I used the money to pay my children's tuition as it was the cheapest interest rate I could get to cover those costs.


They better LOVE you! I've had to take loans for every penny of my education.

What degrees did they get, if you don't mind me asking?

 

[Vuflanovsky]

I have to remember that bit about claiming 99 W-2 exemptions to help pay down 50K in credit card debt. There should be a financial "Darwin Awards" out there somewhere and that should definitely be nominated.

 

[Mr Nice]

Throt,

Do you have a guaranteed job offer after internship?
What is your healthcare experience?

Just wondering, I've been in healthcare for 30 years...

 

[GenesisGuy70]

Originally Posted By: Mr Nice
Throt,

Do you have a guaranteed job offer after internship?
What is your healthcare experience?

Just wondering, I've been in healthcare for 30 years...



Hi

No job offer yet and really no experience. As I said I'm currently just a measly intern until August. I will graduate in December so after that I hopefully can go back to them and say um hey, you wanna hire me?

The CEO taught a class of mine and we got along great and luckily for me she was generous enough to extend her hand and give me the internship. I'm her 2nd intern in her 30+ years in healthcare as well, so I feel quite honored.

 

[daves66nova]

Originally Posted By: PhillyJoe
Some 401k plans allow you to borrow from yourself without penalty.
I borrowed $15,000 to pay off credit card debt, nominal interest which went to my account, payback over 4 or 5 years through a weekly payroll deduction.
This is what I did. Got only 7,000 out. No penalty at all. They charge me interest,but it goes back into my account.

 

[Mr Nice]

Throt,

I don't work for HCA (hospital corporation of America) but I've seen people with masters degree in healthcare administration who busted their butts for 2-3 years and land a COO position with HCA.

I work for a company that has a HUGE contract with HCA. If you don't get offered a job, apply with HCA as they are a very good organization. I know a guy who was offered a COO position.

Good luck.

 

[Cutehumor]

Originally Posted By: Astro14
For the record, I've borrowed heavily against my 401(k). The max of $50K, in fact. I don't consider this to be a horrible financial move. I didn't use it for a car, or consumer spending.

I used the money to pay my children's tuition as it was the cheapest interest rate I could get to cover those costs.


I'm almost 38. I have a 3 year old and a newborn son. I thought about saving for college for them, but the financial guru Suzy Orman say to save for our retirement first. College tuition saving for kids is good if you have the extra money, but there will always be college loans/working/work study for them. With inflation, if you take from your 401k to pay for kids college tuition, you might run out of money for yourself in retirement. I am scared social security and medicare won't exist anymore in 30 years. I have to factor that in my financial retirement decisions.

My financial goals are to save as much as I can in my 28% contributions in my roth 401k and my max roth IRA contributions. I intend to pay our 30 year home loan in 15 years by making extra payments. I think when my kids go to college. If I am financially able and still physically able to work, I might take home equity loan to pay for their college. I just have to see how the state of our economy is in 2031.

 

[Bandito440]

Originally Posted By: daves66nova
Originally Posted By: PhillyJoe
Some 401k plans allow you to borrow from yourself without penalty.
I borrowed $15,000 to pay off credit card debt, nominal interest which went to my account, payback over 4 or 5 years through a weekly payroll deduction.
This is what I did. Got only 7,000 out. No penalty at all. They charge me interest,but it goes back into my account.

The penalty is your money not working for you and earning dividends in your account. Being out of the market in the past five years would hurt. My investments have almost exactly doubled in that time, just in Vanguard's Total Stock Market Index Fund. VTSAX charges fees of 0.05%.

 

[GenesisGuy70]

Originally Posted By: Mr Nice
Throt,

I don't work for HCA (hospital corporation of America) but I've seen people with masters degree in healthcare administration who busted their butts for 2-3 years and land a COO position with HCA.

I work for a company that has a HUGE contract with HCA. If you don't get offered a job, apply with HCA as they are a very good organization. I know a guy who was offered a COO position.

Good luck.



I would be totally fine with a COO position. I just want a higher level management position within a health organization. If I'm being honest with myself though, I'd love to be CEO one day. That's the main goal but if I'm even more honest with myself I know that will probably never happen.

 

[ryansride2017]

A guy I know just withdrew money from his 401K to pay for his brand new $40K Ram Truck in entirety.

 

[Mr Nice]

What position comes next after COO promotion ?
Can't become CEO unless you are a COO for ___ years.

You have to juggle 10 things at once and be good at politics.

 

[eljefino]

My cousin married a succubus who fails at work but is "good at shopping". They bought a duplex so her parents could be next door, ok, I guess, but then rented their existing house to some "friend" who always had drama about rent. They finally kicked the friend out and are /were short sale-ing with the bank.

She went on Facebook to complain about the stress of not knowing when the bank was going to call her back to close the deal, of her walking away from the place!

Of course they trade in every few years for new cars because they need something reliable for the children.

Debt's crushing her and making her "stressed out" (and eating bon-bons staying home not working), but she goes to baby yoga, paint n' me, make-your-own-ceramic-coffee-mug and, yup, they have a timeshare! In the same stinkin' state they live in, so they can go home and get the mail!

My other idiot relative, this one on the wife's side, traded an Infiniti Isuzu Trooper, with a balance, on a Subauru Trifecta, didn't pay that off, and rolled this mess into another Subaru when the middle Subaru had bald tires and needed brakes, at 75k. "Because of the children", of course.