Hello, /biz/ - poorfag wageslave here.
I know asking for serious help on this site is absurd but my family is financially retarded and I can't afford a financial advisor.
I saw two lots of undeveloped land for sale near me going for $8,000 per lot. I have ~$21,000 in my 401K and $1,500 cash in my safe. If I withdraw my 401K I have to make a full withdrawal or a partial withdrawal and roll over the rest into an IRA in order to close the account since I am no longer employed by that particular employer. If I take the full payout and close the account I will have to pay a 10% penalty BEFORE the payout is taxed.
My plan was to take the full payout and close the account and use the full payout to buy those two lots, but after seeing how much the penalty is that isn't feasible - The penalty will bring my $21,000 down to less than $19,000 and then the taxes will likely bring it down below the $15,000 mark. On top of that, the $8,000 listing price of these lots will eventually increase as fees are added into the deal.
I can't touch the $1,500 in my safe because I am saving for a car (my Corolla's engine blew at only 220k miles).
My question is:
Would it be wiser to take a partial payout to cover the cost of ONE of these lots and roll over the rest to a Roth IRA, or to take out a loan/mortgage for the $16,000+ it will take to buy these two lots?
>>1510087
How do you plan on using these lots?
>>1510091
My options are:
>clear out some space and start a small-scale garden/farm for profit
(These lots are in NJ, so if I go this route i will likely grow ginseng as my cash crop. They are zoned for residential use, so I doubt this option is viable.)
>sit on the lot(s) and wait for the value to increase before selling them
>>1510097
>destroying a profitable investment to by a much less profitable one
you may be on the wrong board, buddy.
I think we have a board about losing money somewhere.
What you're saying is that you basically can't afford it. If I was you, I wouldn't touch the 401k, and just roll it over. I would buy a cheap used car if I were you, as much as it is a depreciating asset, it will get you from point a to point b faster (assuming you are asking for rides and/or public transportation).
If you are set on buying the lots, just take a loan/mortgage out for them.
>>1510114
>What you're saying is that you basically can't afford it.
I can't afford both but I could afford one, it's just that I'd be dumping virtually all of my savings into it.
>I would buy a cheap used car if I were you, as much as it is a depreciating asset, it will get you from point a to point b faster (assuming you are asking for rides and/or public transportation).
Asking for rides ATM, and yeah a cheap used car is what I'm aiming for but it will be expected of me by my current employer to use my car for work, not just getting there and back home. It's gotta be cheap, reliable, and not near the end of it's life - a unicorn, basically.
I think you gotta take a loan out for a car buddy
Work as many hours as you can and masturbate for coins in your free time
Good luck!
>>1510107
>board about losing money
I think he's in the right place, actually.