Forum Replies Created
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UCGal
Participant[quote=UCguy]
Here is a question. Let’s say I borrow 50K and all of a sudden I have to repay and can’t (at least not totally) – so I take early distribution and taxes and penalties. How much is are the penalties ? 5K (10%)? Keep in mind that one third of that money came from the company matching (50 cents for my 1 $).
By that time I would probably pay off some of it, and probably still pay some of it, and after I am forcred to take the early distribution, I don’t have to pay my 401k loan.[/quote]My understanding is it’s a 10% penalty on the unpaid portion (regardless of whether it was your contribution, company matching, or gains on either of those… it’s all one big blob.)
And you owe income tax on the unpaid portion – in addition to that 10% penalty. So factor that in.
Participant[quote=UCguy]
Here is a question. Let’s say I borrow 50K and all of a sudden I have to repay and can’t (at least not totally) – so I take early distribution and taxes and penalties. How much is are the penalties ? 5K (10%)? Keep in mind that one third of that money came from the company matching (50 cents for my 1 $).
By that time I would probably pay off some of it, and probably still pay some of it, and after I am forcred to take the early distribution, I don’t have to pay my 401k loan.[/quote]My understanding is it’s a 10% penalty on the unpaid portion (regardless of whether it was your contribution, company matching, or gains on either of those… it’s all one big blob.)
And you owe income tax on the unpaid portion – in addition to that 10% penalty. So factor that in.
Participant[quote=CDMA ENG]
Its especially loud when they crash thier planes in the nieghborhood too.
[/quote]No kidding. I have friends who live 2 doors down from where the plane hit recently. And another friend who, as a child in UC, had a piece of jet go through their family room… (late 70’s or early 80’s) then was living approx 1/4 mile from the jet crash this time.
Participant[quote=CDMA ENG]
Its especially loud when they crash thier planes in the nieghborhood too.
[/quote]No kidding. I have friends who live 2 doors down from where the plane hit recently. And another friend who, as a child in UC, had a piece of jet go through their family room… (late 70’s or early 80’s) then was living approx 1/4 mile from the jet crash this time.
Participant[quote=CDMA ENG]
Its especially loud when they crash thier planes in the nieghborhood too.
[/quote]No kidding. I have friends who live 2 doors down from where the plane hit recently. And another friend who, as a child in UC, had a piece of jet go through their family room… (late 70’s or early 80’s) then was living approx 1/4 mile from the jet crash this time.
Participant[quote=CDMA ENG]
Its especially loud when they crash thier planes in the nieghborhood too.
[/quote]No kidding. I have friends who live 2 doors down from where the plane hit recently. And another friend who, as a child in UC, had a piece of jet go through their family room… (late 70’s or early 80’s) then was living approx 1/4 mile from the jet crash this time.
Participant[quote=CDMA ENG]
Its especially loud when they crash thier planes in the nieghborhood too.
[/quote]No kidding. I have friends who live 2 doors down from where the plane hit recently. And another friend who, as a child in UC, had a piece of jet go through their family room… (late 70’s or early 80’s) then was living approx 1/4 mile from the jet crash this time.
Participant[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.
Channel your inner cheapskate and penny pinch and save till you have your 20% down.
I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.
Participant[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.
Channel your inner cheapskate and penny pinch and save till you have your 20% down.
I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.
Participant[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.
Channel your inner cheapskate and penny pinch and save till you have your 20% down.
I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.
Participant[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.
Channel your inner cheapskate and penny pinch and save till you have your 20% down.
I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.
Participant[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.
Channel your inner cheapskate and penny pinch and save till you have your 20% down.
I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.
Participant[quote=walterwhite]
don’t get a drink the minute I get homewait till dinner
drink wine slowly, not like it’s water
stop after 2 drinks.
Don’t drink every day.
Don’t have more than 3 in a day.
Not sure if these are realistic but, they seem reasonable now.[/quote]
This is pretty much what I do. For me it’s because there’s enough alcoholism in my family that I need to set limits just to reassure myself I’m not one.
BG – the way we pour – a bottle of wine is 4 glasses – just over 6 oz each. More than you get in a restaurant if you order by the glass. My hubby and I split a bottle and each get two glasses.
Participant[quote=walterwhite]
don’t get a drink the minute I get homewait till dinner
drink wine slowly, not like it’s water
stop after 2 drinks.
Don’t drink every day.
Don’t have more than 3 in a day.
Not sure if these are realistic but, they seem reasonable now.[/quote]
This is pretty much what I do. For me it’s because there’s enough alcoholism in my family that I need to set limits just to reassure myself I’m not one.
BG – the way we pour – a bottle of wine is 4 glasses – just over 6 oz each. More than you get in a restaurant if you order by the glass. My hubby and I split a bottle and each get two glasses.
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