Cashing out the 401k

I don't think you should put that much into eth.

Also, why no alts?

>>2886509

I don't think alts are responsible. I can guarantee that in 3 years, BTC and ETH will still be here. I can't say the same for any alt.

>>2886503
I wouldn't cash my 401k out - too big of a tax penalty. Why not stop withholding (or withhold less) and buy crypto with it instead?

>>2886570

I put a basic spreadsheet together which compares projected returns on 'traditional assets', vs 'crypto', and my ending portfolio value in 5 years under different scenarios. I believe that it is more advantageous to continue contributing a large amount via my 401k to traditional investments, as opposed to after-tax buying of crypto each month, in any return scenario (where crypto has a >0 return)

>>2886579
Is this bait? You made a cute little spreadsheet and think that the 401k value will be the same after you withdraw it? You just get tax free money? You're a massive slut. You'll lose $10000 immediately.

>>2886570
This is the correct course of action

look into "mega back door roth ira" too

>>2886579
You'll lose ~40-50% of your 401k value immediately upon withdrawing it (income tax plus penalty plus fees).

Diversify your shit. I've got 150k in 401k, a stock portfolio, real estate and crypto.

Don't all in crypto. You could really regret it.

Ok, looking at the taxes on withdrawal -- yikes.

What about taking a loan from the 401k? The repayment is straight back into the 401k, and I can borrow half of my value. Anyone try that?

>>2886661
Yes. I did that when buying my house to ensure that my emergency fund was large enough. Even if your crypto holding reduced to zero dollars, you have to repay loan. if you cannot repay the loan, you get hit with the text even if your crypto holding reduced to zero dollars, you have to repay if you cannot repay the loan, you get hit with the tax penalty.

I don't think that it is wise to borrow from a fairly proven and successful investment to speculate on an extremely volatile market that is just beginning to correct after going parabolic.