I've recently joined my companies 401k plan i believe in december. I missed the sign up dates the previous 2 times (we can only sign up for this twice a year) and I finally got in towards the end of last year. I went pretty aggressive on it, putting the maximum that was allowed (12%). I was told the impact that it would make on my check would not be that significant, but now I can see that it is or atleast to me it is.

Every month it yanks out a good $800 or so off my check. I know that 300 of that would have been taxed anyway but I could have had another 500 in my pocket. Not that im going to spend it but atleast I know the money is there when I need it and I can take it out whenever without penalty.

Im torn as to whether to keep my 401k account or not. The reason for that is because my life will be very short lived. I have finally accepted that fact and understand that sometimes you just get the bad chocolate. (Life is like a box of chocolate is it not?) It is what it is. Im likely to not even reach the age of 25 let alone 67 and im sure by the time im that old they will raise the retirement cap again.

Should I keep my account? Im not too fond of the thought that my money is going somewhere I cannot touch and that I will not live long enough to see it come back to me. I know that 401k is good to have because everything is taxed deferred and it would work out great if by some miracle an angel from heaven came down and casted dust of immoratality on me or I gain some sort of mutant powers that would allow self heal but I dont see the likely hood of that happening.

Im not sure what exactly is the penalty for taking it out. Its only been a few months so I dont have tens of thousands in there but what is the penalty going to be other than tax and I would assume they also take out any earned interest if any at all? Thoughts?

Thanks

Cheers to death

 

You can anyways just provide a beneficiary such as your parents. I would think it still workout in the end. I am a pretty strong 401k proponent only because I am only wanting to work till 55. After that its all gravy. I just want the security of not being stuck bagging groceries at age 65. IMHO.

 

Just make me the beneficiary Will!

 

Why are you saying that you're not going to live long? Any particular reason?

 

IF you are not going to live past the age of 25 then why bother??

enjoy life now

 

Why don't you hedge your bets and just put less $$ into your 401(k) each month?

Does your company match your contribution, or give profit sharing? If it does either, why don't you just contribute as much as is matched. . . might as well take the free money, right?

 

You'll of course be the one that lives to 89 like my grandfather. He was retired for 30 years and in good health almost right up untill the very end.

 

Yeah i've been caught up with a lot of health issues. Spent 3 months in the hospital last year alone plus 4 months recovery time and they still dont know whats wrong. Been to many doctors and hospitals. Everything but some what they call master healers? lol I guess I should give that a shot what the hell right? Maybe im just being negative but even so if I have to continue to deal with the needles, tests, steroids, drugs, etc, I think I'd rather die.

My company only matches up to $300. Yeah I know, it sucks. I guess I could contribute less into it but I dont think I would be getting back all that much. I thought I would just go all out or not get into it at all

 

To be tax deferred, you must select that option when you start the 401k. That would be before-tax-dollars. ( I think this is the most prudent option for growth over time). This option allows the strongest potential for long-term growth in which you pay taxes on the withdrawal years down the road. The other side is to choose after-tax dollars which invests with deductions from your net income. I see 2 downsides to this strategy. One is that there is less money for growth over time, and the other is that you will realize a much stronger hit on your take-home earnings. By choosing the before-tax option, you reduce the amount of your taxable gross earnings rate. However, since you are not looking at long term financial prospects, I'd live it up now.

 

I'm sorry to hear about your health situation.

But perhaps you can "afford" to invest your money in a higher risk investments. Directly into the stock market or something. Can't give you advice, but maybe that is something to look into.