Finally liquidated my 401k and SEP IRA

[socrattt]

[quote=danielwis]

I’m following the San Diego market and the Honolulu market. Both are still to rich for my blood, though this might be the bottom. I don’t know (who does??). I’m staying put, unless things take another leg down. If I were thinking of making a purchase for my primary residence, I would likely jump in now, but that’s not the case.[/quote]

Thanks to all of you for you input. I could definitely borrow half, which was an option, but something I decided against. Part of the money was in a SEP IRA and I was told I could not borrow against.

Sdduuude, I pulled the money out of the retirement umbrella and will be responsible for the taxes. I can stretch the entire amount for a bit of time if there are any short term investments and then pay the taxes.

Daniel, I don’t think we had the type of inventory issues in the 90’s we currently have so I wouldn’t hesitate to say the market has a long way to go. That said, inflation may play a role in this as well. I wish I could slightly predict where things are going, but unfortunately I can’t.

Mercedes to answer your question, I am a real estate investor and work in the alternative energy realm in CA and NV. I am working with some larger European solar companies looking for potential solar plays, so chances are this is where my money will go.

I am not a 9 to 5er, I am entrepreneur and sort bust my tail trying to make things happen. I would define myself as a conservative, all in kind of guy (if that makes sense). I make investment assessments with my own risk factors, if I like what I see I am all in. Sort of like poker :).

I guess if I pulled the cash out with no definitive purpose that could easily be considered a bad move, but I do have some direction and believe I can do well with the cash in this current market.

[(former)FormerSanDiegan]

socratt, there are some cases where people are better off ultimately by building a business opportunity versus blindly investing in markets. The time to do this is in your late 20’s and early 30’s. Good luck on your endeavors.

For others out there … even if you liquidate IRAs (since they have no loan provisions) at least take the loan approach for the last 50k from your 401k.

In many cases you can actually end up with more cash avaliable from the 50% loan than a straight withdrawal due to taxes, phase outs, etc. Do the math.

[(former)FormerSanDiegan]

socratt, there are some cases where people are better off ultimately by building a business opportunity versus blindly investing in markets. The time to do this is in your late 20’s and early 30’s. Good luck on your endeavors.

For others out there … even if you liquidate IRAs (since they have no loan provisions) at least take the loan approach for the last 50k from your 401k.

In many cases you can actually end up with more cash avaliable from the 50% loan than a straight withdrawal due to taxes, phase outs, etc. Do the math.

[(former)FormerSanDiegan]

socratt, there are some cases where people are better off ultimately by building a business opportunity versus blindly investing in markets. The time to do this is in your late 20’s and early 30’s. Good luck on your endeavors.

For others out there … even if you liquidate IRAs (since they have no loan provisions) at least take the loan approach for the last 50k from your 401k.

In many cases you can actually end up with more cash avaliable from the 50% loan than a straight withdrawal due to taxes, phase outs, etc. Do the math.

[(former)FormerSanDiegan]

socratt, there are some cases where people are better off ultimately by building a business opportunity versus blindly investing in markets. The time to do this is in your late 20’s and early 30’s. Good luck on your endeavors.

For others out there … even if you liquidate IRAs (since they have no loan provisions) at least take the loan approach for the last 50k from your 401k.

In many cases you can actually end up with more cash avaliable from the 50% loan than a straight withdrawal due to taxes, phase outs, etc. Do the math.

[(former)FormerSanDiegan]

socratt, there are some cases where people are better off ultimately by building a business opportunity versus blindly investing in markets. The time to do this is in your late 20’s and early 30’s. Good luck on your endeavors.

For others out there … even if you liquidate IRAs (since they have no loan provisions) at least take the loan approach for the last 50k from your 401k.

In many cases you can actually end up with more cash avaliable from the 50% loan than a straight withdrawal due to taxes, phase outs, etc. Do the math.

[clearfund]

Socrattt – How long ago did you do this?

One solution that a vast majority of our real estate investor clients to use is a “Self Directed Real Estate IRA”. This is a tax free rollover!

Essentially you roll over/convert your current IRAs/401k/etc into a Self Directed IRA at one of the self directed IRA custodians. Thus they transfer your funds from Citi, Morgan, Fidelity, etc to these self directed firms and you are free to use these funds for real estate based investments, etc.

Once done you can invest in virtually anything you want, when you want to. You can invest in investment real estate, make real estate loans, etc. You could even invest in a hot dog stand if you felt so inclined.

Now the same rules about forbidden transactions apply (cannot lend to your family, or buy a vacatin home for yourself, etc).

We’ve found freedom from Wall Street by being able to invest in debt/equity in real estate with funds that were previously held hostage by the large brokerages.

Google “Self Directed IRA” and become enlightened. Most people have never heard of this process as the big boys want to crush it.

You’ll find a lot of info, and custodians. Over the years we’ve narrowed our custodian providers down to two who provide great service at the lowest relative fees.

[clearfund]

Socrattt – How long ago did you do this?

One solution that a vast majority of our real estate investor clients to use is a “Self Directed Real Estate IRA”. This is a tax free rollover!

Essentially you roll over/convert your current IRAs/401k/etc into a Self Directed IRA at one of the self directed IRA custodians. Thus they transfer your funds from Citi, Morgan, Fidelity, etc to these self directed firms and you are free to use these funds for real estate based investments, etc.

Once done you can invest in virtually anything you want, when you want to. You can invest in investment real estate, make real estate loans, etc. You could even invest in a hot dog stand if you felt so inclined.

Now the same rules about forbidden transactions apply (cannot lend to your family, or buy a vacatin home for yourself, etc).

We’ve found freedom from Wall Street by being able to invest in debt/equity in real estate with funds that were previously held hostage by the large brokerages.

Google “Self Directed IRA” and become enlightened. Most people have never heard of this process as the big boys want to crush it.

You’ll find a lot of info, and custodians. Over the years we’ve narrowed our custodian providers down to two who provide great service at the lowest relative fees.

[clearfund]

Socrattt – How long ago did you do this?

One solution that a vast majority of our real estate investor clients to use is a “Self Directed Real Estate IRA”. This is a tax free rollover!

Essentially you roll over/convert your current IRAs/401k/etc into a Self Directed IRA at one of the self directed IRA custodians. Thus they transfer your funds from Citi, Morgan, Fidelity, etc to these self directed firms and you are free to use these funds for real estate based investments, etc.

Once done you can invest in virtually anything you want, when you want to. You can invest in investment real estate, make real estate loans, etc. You could even invest in a hot dog stand if you felt so inclined.

Now the same rules about forbidden transactions apply (cannot lend to your family, or buy a vacatin home for yourself, etc).

We’ve found freedom from Wall Street by being able to invest in debt/equity in real estate with funds that were previously held hostage by the large brokerages.

Google “Self Directed IRA” and become enlightened. Most people have never heard of this process as the big boys want to crush it.

You’ll find a lot of info, and custodians. Over the years we’ve narrowed our custodian providers down to two who provide great service at the lowest relative fees.

[clearfund]

Socrattt – How long ago did you do this?

One solution that a vast majority of our real estate investor clients to use is a “Self Directed Real Estate IRA”. This is a tax free rollover!

Essentially you roll over/convert your current IRAs/401k/etc into a Self Directed IRA at one of the self directed IRA custodians. Thus they transfer your funds from Citi, Morgan, Fidelity, etc to these self directed firms and you are free to use these funds for real estate based investments, etc.

Once done you can invest in virtually anything you want, when you want to. You can invest in investment real estate, make real estate loans, etc. You could even invest in a hot dog stand if you felt so inclined.

Now the same rules about forbidden transactions apply (cannot lend to your family, or buy a vacatin home for yourself, etc).

We’ve found freedom from Wall Street by being able to invest in debt/equity in real estate with funds that were previously held hostage by the large brokerages.

Google “Self Directed IRA” and become enlightened. Most people have never heard of this process as the big boys want to crush it.

You’ll find a lot of info, and custodians. Over the years we’ve narrowed our custodian providers down to two who provide great service at the lowest relative fees.

[clearfund]

Socrattt – How long ago did you do this?

One solution that a vast majority of our real estate investor clients to use is a “Self Directed Real Estate IRA”. This is a tax free rollover!

Essentially you roll over/convert your current IRAs/401k/etc into a Self Directed IRA at one of the self directed IRA custodians. Thus they transfer your funds from Citi, Morgan, Fidelity, etc to these self directed firms and you are free to use these funds for real estate based investments, etc.

Once done you can invest in virtually anything you want, when you want to. You can invest in investment real estate, make real estate loans, etc. You could even invest in a hot dog stand if you felt so inclined.

Now the same rules about forbidden transactions apply (cannot lend to your family, or buy a vacatin home for yourself, etc).

We’ve found freedom from Wall Street by being able to invest in debt/equity in real estate with funds that were previously held hostage by the large brokerages.

Google “Self Directed IRA” and become enlightened. Most people have never heard of this process as the big boys want to crush it.

You’ll find a lot of info, and custodians. Over the years we’ve narrowed our custodian providers down to two who provide great service at the lowest relative fees.

[Anonymous]

Keep in mind you have 60 days to roll it into another IRA (the funds from the SEP and the IRA). In other words your decision is not final until 60 days is up from when you took the money out.

No question in my book that borrowing half makes a lot of sense. At the very least pulling some of the money out in two or three different tax years would lower the taxes (depends on the amount. Put half of it back in and do the other half next year.

Alex

[Anonymous]

Keep in mind you have 60 days to roll it into another IRA (the funds from the SEP and the IRA). In other words your decision is not final until 60 days is up from when you took the money out.

No question in my book that borrowing half makes a lot of sense. At the very least pulling some of the money out in two or three different tax years would lower the taxes (depends on the amount. Put half of it back in and do the other half next year.

Alex

[Anonymous]

Keep in mind you have 60 days to roll it into another IRA (the funds from the SEP and the IRA). In other words your decision is not final until 60 days is up from when you took the money out.

No question in my book that borrowing half makes a lot of sense. At the very least pulling some of the money out in two or three different tax years would lower the taxes (depends on the amount. Put half of it back in and do the other half next year.

Alex

[Anonymous]

Keep in mind you have 60 days to roll it into another IRA (the funds from the SEP and the IRA). In other words your decision is not final until 60 days is up from when you took the money out.

No question in my book that borrowing half makes a lot of sense. At the very least pulling some of the money out in two or three different tax years would lower the taxes (depends on the amount. Put half of it back in and do the other half next year.

Alex

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