Looking for Advice

Deldran

So I might be moving to a new job soon.
I am looking for some advice on what to do with my 401k.

I have been doing some reading and I see i have 3 options.
1.) roll into new employers 401k plan
2.) roll into an IRA
3.) cash out.

I understand for long term options 1 & 2 are better, but i am young and do have some debts. I would like to be able to buy a house in the next year or two but have no savings and unfortunately have to many bills to really be able to really save any substantial amount of money at the moment.

I live in Illinois and have ~18k in my 401k at the moment. Here is my thought process on possibly cashing out. or aka my options of what to do with the money.

1.) use all the money left after taxes to put toward down payment on a home. I would really like to do this but do not know if it is the best option as most homes that would fit my family and my lifestyle would likely be to much for me to afford without getting a room mate or two.

2.) Use the after tax money to pay off my car ~10k and a small student loan ~5k. This would essentially free up 500 dollars a month in bills. which would allow me to pay off credit cards quickly and then aggressively save for down payment on a home.

I know the wise choice is likely to roll the 401k over and continue to put away for retirement. but i would really like to make a dent in this substantial amount of debt I have. I can get by as is but its pay check to pay check and if we move my rent will go up since I will likely not have roomates.

I am just looking for ideas and opinions. I personally have been pretty bad with money management in the past and I am working on trying to improve that aspect of my life.

Thanks

Wilkins

This is a UK forum, so you may not get any knowledgeable responses (you never know, though) and this isn't one. In the UK you cannot cash out your pension unless you have been in it for less than two years.

atush

I haven't got either, but I can assume as an American you may have to pay a tax penalty if you cash out?


Basically if the govt gives tax breaks for saving in it, they are going to want them back if you don't keep your end of the bargain (ie to wait til retirement)

jimjames

Best advice at the moment on here seems to be to move your investments from Hargreaves Lansdown to somewhere cheaper.

Do HL sell 401 plans?

Archi_Bald

how do HL come into this?

Freecall

Archi_Bald wrote: »

how do HL come into this?

It must be their fault, everything else is.