I know you’re never supposed to cash out 401k savings. Between the penalties, taxes and loss of compounding interest gains, it just doesn’t make sense. However, I’m in quite the predicament. My previous employer was going through major layoffs and my position was in jeopardy. I had been there for 7 years and earned 2 promotions. Had fantastic relationships and always got positive reviews. But, you can never be sure when 30% of the staff is being laid off. So, I was lucky (or so I thought) to find another job paying more with better benefits. Win win right? Wrong. New company is horrible. Literally think my boss could be from the movie horrible bosses. Not to mention, the job is nothing like what was described to me during the interview process. My skills and experience don’t line up well with what I’m doing and I’m way out of my league. Bottom line, it’s been 2 months and I’m pretty sure I’m about to get fired.
So, here’s the situation. We have about 1 month of expenses saved. About $12k in credit card debt. And about $15k in available credit. Also have $15k on car note and $16k in student loan debt. Have $22k in my previous employers 401k. And about $25k in an IRA.
So, if I can’t find another job right away, is it best to live off the credit cards? Or to cash out the 401k? Should also mention I am the main income for the household. Wife and 2 kids.
Submitted June 28, 2018 at 12:18AM by scottieg191 https://ift.tt/2KudC2D
