My husband abruptly quit his job of 17 years with a large corporation. He has a new job lined up that could potentially be very profitable but of course, the future is unknown. It may be a few months before he actually gets a paycheck and even then the number will fluctuate as the new job is in sales (which he’s never done before but same field as previous job).
We live in a passed down family home and own another home that we rent out netting very little so no income there really. We have no debt other than our mortgage for the rental. It’s been long overdue for us to get a new car and update the 70s house. My husband wants to withdraw all of his 401k to finally follow through on our plans. My question is whether this is a horrible plan or just personal preference on how to spend your own money?
The 401k will probably be $100k after the penalty. We have about $200k in real estate equity, $50k in life Insurance money, and $20k in a Roth. Is it a really stupid plan or are we ok since we still have a bit of cushion?
EDIT: Since my gut and what little finance knowledge I have told me the 401k was a bad idea and the kind people hear unanimously thought it was a crazy idea, I will put my foot down with my husband. My follow-up question would be what is the better choice: liquidate our life insurance policy with the company he no longer works for or refinance the rental that we have only 15 years left to pay? I believe that rates aren’t great for rental homes. TYIA!
Submitted February 08, 2019 at 03:05AM by weirdlysane http://bit.ly/2MZeEG0
