Cashing out 401k when on disabilty

Hi all
Some context here: I’m 40 years old and in a HCOL (SoCal) area. I currently live with my partner who works full time and we rent and split those costs.
I spent most of my younger years not saving and actually paying down debt I built up. I actually was around $66k in credit card debt but was able to pay it down in about 2-3 years during COVID. I’m currently out of all of that debt and the only thing I pay is a car lease and my rent/utilities. I put general expenses on cards but pay them down every month.
My job pays $178k base with options of a $35k yearly bonus. Will caveat that I never get that full $35k. We usually get about $10-15k at most.
I do get some RSUs for a high tech Fortune 15 company and that’s usually $10-30k vested over 3 years each year.
Currently my savings are dismal. I’m about to dive in the deep end to fix this.

• 401k is only like $10k 😬
• One backdoor Roth IRA at $6500 I just did for 2023
• $10K in company stock and another $65K in RSUs over the next 3 years
• About $6500 in crypto
• $5000 in a HYSA
• $1100 randomly in some ETFs (VOO, SCHD, QQQM)
• About $11K in fluid cash in accounts

I’m maxing out 401K this year and getting my employer match. I’m also going to max my 2024 IRA and invest about $1300 monthly.
Ideally would love to accelerate this when I can but am I dooming myself to be working until beyond 60? I feel so foolish for jumping on this late. It’s unnerving and incredibly demoralizing. Even posting for guidance is painful but I know I need to get better.

My 8 yr old son's mother my ex fiance is my personal gatekeeper to hell. This narcissistic woman has relocated my son 6 times now in 8 years 5 cross country. Each time I attempted to intervene my car would break down or I was just broke. I have sold everything, cashed out any 401k, borrowed and repaid. My son became ill daycare refused him my ex refused to take him in I did so costing me thousands when I gave her the bill which would have been covered under her insurance she refused to pay it stating that I took him to the doctors without her permission. We have now been settled for three years I have a good job benefits, 140 hours paid time off for illness or vacation. 14 paid days off for Christmas and other holidays we've been in Scouts now for 3 years where I've been his scout leader. He's been going to cooking classes with me martial arts classes and numerous activities that have created him a beautiful life here. And no she's relocating for the 7th across country. She has three kids by two other fathers who don't really give a damn what they do. Now she's forcing me to decide whether I want to have a child or job security and financial security and relocate totally across the United States. I made an attempt to take her to court borrowed the money and discovered that I wasn't even on his birth certificate after the child was born and I signed the paperwork in the midwife signed the paperwork she threw it away. It's that I have to believe that the post office lost it where it was misplaced by vital records in Utah. After spending what I had left I didn't get a DNA test which positively prove my son was my child filed in court again and upon doing so found out she had purchased a house and plans on leaving 2 months before we can get into court. She's explaining to me that she isn't doing anything to my life that it's my decision to ruin my life but following him around and I should be happy with having him once a year if that flying back and forth I have no damn idea what I'm doing lost frightened saddened and sick this so we could do this to somebody else's life and get away with it.

EDIT: We are now 100% sure this is a scam. The person conducting the hiring lists his name as Syed Salmann. "Syed Salmaan" shows up on other scams with other tech company names, too. Dang dude, pick a more generic name. Too easy to find. Always start with Reddit. God bless you, Reddit.
ORIGINAL POST:
[Was gonna create a burner account for this but it's not for myself, so anyway]
TL;DR: good money but weird "offer letter" that you have to sign, plus full name and address, plus photocopy of ID, and something about training and then buying a Mac? What the heck?
SORRY in advance for the length.
I have a acquaintance. A recent grad from a very good CompSci school in the midwest got this offer today. I have redacted their name and the name of the company but I will put the company name in a comment below.
Are there red flags here? I know, I know, if it seems too good to be true, it probably is, but this person has been looking for 4 months now and this is really enticing.
BEGIN
From: HR Person (no longer redacted. name listed as Syed Salmann)
Date: Mon, May 6, 2024 at 9:00 AM
Subject: Re: Job Application
To: Candidate
Hello Candidate,
I am thrilled to announce that you have been selected to join our team as a Software Engineer COMPANY. Congratulations on this outstanding achievement! Your exceptional skills and exemplary work ethic have garnered recognition from our company.
We are confident that your expertise, experience, and capabilities will seamlessly integrate into our innovative team and make a significant contribution to our company's growth.
As part of your onboarding process, you will receive daily emails outlining your responsibilities, and I will be available online to assist you every step of the way. Following the setup of your workstation, you will participate in a 3 to 5-day online training session via Zoom.
Your compensation will begin at $***** (a LOT!) per hour, with payments issued weekly through wire transfer, direct deposit, or check, according to your preference. Our comprehensive employee benefits package includes health, vision, dental insurance, paid time off (PTO), a 401k plan, and employee wellness programs, with additional benefits becoming available after three months of tenure.
Virtual communication will be maintained during your initial five days with us. Once this period is completed, you will receive a user ID, password, company server access link, department contact numbers, and all necessary forms.
To ensure you have everything necessary to start, you will receive a check to set up your workspace and acquire the required office equipment and software for training and work.
Your Employment Offer Letter will be sent out shortly, and we encourage you to begin your training at your earliest convenience.
To expedite the registration process and prepare your offer letter, kindly provide the following information, which I will forward to the HR department:
Your Full Name
Complete Mailing Address
Contact Information
Email Address
Please email me the requested information at your earliest convenience.
Congratulations once again on your appointment!
Best regards,
HR Department
NEXT CORRESPONDENCE:
Hello CANDIDATE,
We extend our warm congratulations on your decision to join Company Attached to this email, you will find your job offer letter. Kindly print the letter, thoroughly review its contents, sign it, and return the signed offer letter to us.
Please be mindful that upon acceptance of this job offer, your weekly commitment will be 35 hours, with flexible working hours allowing you to choose your preferred schedule. Additionally, to facilitate the setup of your workstation, the following items will be provided: an iMac M3 Chip 8gb/256gb/8core CPU/GPU, HP LaserJet Pro M15w printer, external hard drive/backup system, headphones with a microphone, router and networking equipment, access to Proof Hub and GitHub, surge protectors, as well as Crimson Editor and the Adobe Suite.
Following the procurement of the necessary equipment, our approved vendors will arrange for its delivery either to your home address or a nearby post office, as per your preference.
Kindly respond to this email with the signed offer letter and copies of your valid front and rear IDs for employment verification.
Once the offer letter is signed, arrangements will be made to issue a check for the specified workspace equipment, and your training will commence promptly upon the equipment's delivery.
Best regards,
HR Department
OFFER LETTER:
THE COMPANY is pleased to offer you employment on the following terms:

1. Position. Your initial title will be Software Engineer on Entry Remote Position, and you

will be reporting to A PERSON pending the time you setup your workstation. This is a
Full Time Remote Position although, while you render services to the Company you can
still be engaged in any other employment, consulting or other business activity
(with part-time) provided that it wouldn't create any conflict of interest with the
Company. By signing this letter of agreement, you are confirming to the Company that
you have no contractual commitments or other legal obligations that would prohibit you
from performing your duties to the Company.

1. Cash Compensation. The Company will pay you a starting salary at the rate of $ALOT per

hour and $20 per hour during training, payable in accordance with the Company's standard payroll
schedule. You will be receiving your salary either via check or direct deposit.

1. Employees Benefits. We offer comprehensive insurance benefits to all employees who are

engaged in on-going part-time/full-time work and we are committed to providing you with the
ability to customize these benefits to your individual needs. We offer six primary types of
insurance: Health Insurance, Dental Insurance, Vision Insurance, Term Life Insurance Employee
Wellness and Paid Time Off.

1. Stock Options. Subject to the approval of the Company's Board of Directors or its

Compensation Committee, you will be granted an option to purchase 2 shares of the Company's
common stock (Option). The Board of Directors or the Compensation Committee will determine
the exercise price per share of the Option when the Option is granted. The Option will be subject
to the terms and conditions applicable to options granted under the Company's Stock Plan (the
"Plan"), as described in the Plan and the applicable Stock Option Agreement. You will vest in 25%
of the Option shares after 12 months of continuous service, and the balance will vest in Equal
monthly instalments over the next 36 months of continuous service, as described in the applicable
Stock Option Agreement.

1. Employment Relationship. Employment with the Company is for no specific period of

time. Your employment with the Company will be "at will," meaning that either you or the
Company may terminate your employment at any time and for any reason, with or without cause.
Any contrary representations that may have been made to you are superseded by this letter of
agreement. This is the full and complete agreement between you and the Company on this term.
Although your job duties, title, compensation and benefits, as well as the Company's personnel
policies and procedures, may change from time to time, the "at will" nature of your employment
may only be changed in an express written agreement signed by you and a duly authorized officer
of the Company (other than you).

1. Interpretation, Amendment and Enforcement. This letter of agreement is the complete

agreement between you and the Company, contains all of the terms of your employment with the
Company and supersede any prior agreements, representations or understandings (whether written,
oral or implied) between you and the Company. This letter of agreement may not be amended or
modified, except by an express written agreement signed by both you and a duly authorized officer
of the Company. The terms of this letter of agreement and the resolution of any disputes as to the
meaning, effect, performance or validity of this letter of agreement or arising out of, related to, or
in any way connected with, this letter of agreement, your employment with the Company or any
other relationship between you and the Company (the "Disputes") will be governed by USA law,
excluding laws relating to conflicts or choice of law. You and the Company submit to the exclusive
personal jurisdiction of the federal and state courts located in the USA in connection with any
Dispute or any claim related to a Dispute.
We hope that you will accept our offer to join the Company. You may indicate your agreement
with these terms and accept this offer by signing and dating the letter of agreement and returning
them to the Company. This offer, if not accepted, will expire by close of business on 05/07/2024.
As required by law, your employment with the Company is contingent upon you providing a legal
proof of any of your Identity Card and authorization to work in the United States e.g. driver
license. Your employment is also contingent upon you starting work with the Company on or
before 5/20/2024.
Thank you and Congratulations.

A couple of weeks ago, I was suddenly and without notice downsized from a job that I loved where I worked with really good friends. I received my last paycheck, three weeks of severance pay, and cashed out PTO. I had 149 hours of unused PTO, but they only cashed out 55 hours. They have a policy in the handbook that says if you quit, you forfeit any unused PTO. But the thing is, I didn't quit. I want the rest of my PTO/$2k. I am also worried they will try to take any money they've matched in my 401k, since there is a similar policy regarding vested balances.
When I was downsized, they let go of approximately 15% (at least 7 out of 49 or 50) of their full time salaried staff in order to purchase another company that brought on 4 new employees. So it doesn't qualify as a "mass layoff" according to WI state law.
Another layer to complicate the issues is that the company is based in WI and I worked remotely out of TN.
Is there anything I can do besides be upset? TIA.

Not A Typical Q; Kind Advice Appreciated
Recently opened a joint cash management account and applied for a withdrawal of an old 401k to be transferred into the new Fidelity banking account. After waiting the allotted amount of time for the new Fidelity account to be linked to the workplace account, the transfer was initiated online for a full withdrawal, which would close out the 401k account. Understandably, this would take a few business days to complete, and expected to take several days, especially given that it was initiated on a Friday. No advice was sought from Fidelity or the virtual assistant, but the paperwork was scanned numerous times, many ways, and also by a friend who’s a senior admin at a brokerage firm. Received a vague email from Fidelity stating that the withdrawal had been processed and approved, and though it was understood that some stock would need to be sold for cash that would again take a little time, that email left more questions than answers as to when and if the funds would be transferred to the banking account. Expected initially prior to initiation of the withdrawal transaction that funds would be accessible in the Fidelity bank account by the middle part of this week. Yet, the latest email and website updates indicate this may not be available until later this month. Was something screwed up or does the withdrawal/transfer process need to be stopped and then processed in a different way? Understandably, this isn’t a typical question posted here. Yet, desperate times and desperate measures. Just want to make sure the money goes where it’s needed. Hoping to reinvest a good portion of what’s transferred into trading of own choosing. Thanks for any help!!

Hello- Could anyone comment on my (future) version of FIRE. I purposely bought an affordable condo in the US in a state with a strict definition of income. Basically, the state does not tax pensions, 401ks and IRAs (in a qualified/job fund). The bulk of my retirement at 591/2 will be from pensions and job related 401ks and IRAs. Since, I will fire in a year at 53 I will need to have ways of paying for my lifestyle (basic) which amounts to 72k US per year (includes mortgage and if I were to live in the US full time) but ballons to 120k if I travel 6 months of the year. In order to maintain my tax status/state residency, I must be in residence 183days. So, has anyone else done something like this? Can this community aggressively poke holes in my plan, please? I really would rather face potential downfalls now than when I am in my retirement. Thank you. I will be posting this on multiple fire sites; so, please don't think I'm a troll.
Someone suggested that numbers would be helpful. Here they are:
I live in Philadelphia, PA. I am single and 52yo. I would like to FI in 2025.
Workplace Pension 1 at 59.5 as a lifetime annuity currently est at 6700. I used the workplace calculator which only lets me model a projection. I currently have 1.342M US the projection in 2.24M at 59.5 (2030)
Work Place Pension 2 at 59.5 as a lifetime annuity currently est at 7500. This is from a previous job that I left (Kaiser Permanente TPMG) and I am not sure how this is derived. I was there for 20 years
ROTH IRA 215k US
Brokerage 565k US
Cash 271k which I reserve as a 3 yr reserve fund should the market go down and I need to avoid withdrawls. I am very new to this but I am trying to side-step the sequence of returns risk.
Currently working on building an emergency fund of 3-6months which will be 36k for me. This includes mortgage.
I started work as a 1099 (independent contractor) in October 2023 and have JUST begun contributing to a Solo 401k. My accountant prefers the solo 401k to SEP IRA. I would really appreciate critiques of this as well.
Solo 401k as of today 1,213.00 in 2023 and I hope to max it out in 2024 at 78k.
As an independent contractor I expect this years pre-tax inc to be 284K.
Growing up, a dollar never made a dollar. When I first started working a colleague pulled me aside and said just do this and you'll thank me later. I did and I do, but I still don't fully understand what I am doing. My grandmother, a child of the depression, raised me and we always saved 1/2 our salary (okay, I slipped a lot). I say all this because I recognize I have saved more than most of my compatriots and do not want to seem disingenuous when seeking out this advice on the forum. Thank you.

Hello. I'm writing this post in hopes of hearing others' opinions on my situation, though my heart is 80% set on staying at my company.
Summary: I received an offer for a role similar to mine (though not exactly the same skills) in a different industry. This job pays a competitive salary and has incredible benefits, including a generous 401k match, a pension, and a yearly cash bonus in the range of 14-28% of my salary. My current job is in tech and I love it immensely. It's an internal role so the salary has been limited, but with new leadership, my salary has been steadily going up. They offered to match my new salary and promote me to a senior level in hopes of keeping me. Management has shared that this change was coming anyway and it's something they've been fighting for, but I'll be the first to raise my level's salary up that much.
Current Job Pros - Best management I've ever worked for who genuinely cares about my career, continuous learning, grad school tuition coverage (which I would need if I want to advance to a manager level), now-matched salary, stock purchase plan with 5% discount, FULLY REMOTE, super flexible schedule, travel, and an amazing team.
Current Job Cons - No bonus, unclear on how promotions/raises will go after this raise, and expensive health insurance plan.
New Job Pros - Bonus, 401k match, pension, cheaper health insurance, starting fresh at a higher starting salary, and about 7 extra days of PTO (really it's sick leave, which I don't currently have).
New Job Cons - Hybrid, new skills that I would have to learn before/as I start, unclear on how long I would stay at this salary before a promotion/raise, and I would be paid hourly until the next promotion when I become salaried (not sure how this would play out).
I'm very thankful that I even have an opportunity to weigh my options between two jobs. I'm trying to make the right choice for my family while also not sacrificing career progression. What would you do?

Recently opened a joint cash management account and applied for a withdrawal of an old 401k to be transferred into the new Fidelity banking account. After waiting the allotted amount of time for the new Fidelity account to be linked to the workplace account, the transfer was initiated online for a full withdrawal, which would close out the 401k account. Understandably, this would take a few business days to complete, and expected to take several days, especially given that it was initiated on a Friday. No advice was sought from Fidelity or the virtual assistant, but the paperwork was scanned numerous times, many ways, and also by a friend who’s a senior admin at a brokerage firm. Received a vague email from Fidelity stating that the withdrawal had been processed and approved, and though it was understood that some stock would need to be sold for cash that would again take a little time, that email left more questions than answers as to when and if the funds would be transferred to the banking account. Expected initially prior to initiation of the withdrawal transaction that funds would be accessible in the Fidelity bank account by the middle part of this week. Yet, the latest email and website updates indicate this may not be available until later this month. Was something screwed up or does the withdrawal/transfer process need to be stopped and then processed in a different way? Understandably, this isn’t a typical question posted here. Yet, desperate times and desperate measures. Just want to make sure the money goes where it’s needed. Hoping to reinvest a good portion of what’s transferred into trading of own choosing. Thanks for any help!!

Whelp, that same feeling I’ve felt before of disgust, anger, anxiety, regret are all back. I wish I could bottle up this feeling and revisit it every time I think of gambling. I started sports betting when I was 20 with a local bookie in Hawaii. won some lost some , lost more than I won but once I moved it stopped me from betting.
Got a nice job when I was 22 gambled my first paycheck of 2k , flipped to 5k and lost it all. No biggie, I simply stopped gambling again. Fast forward to last year nba playoffs, I deposit 1k and quickly flipped it to $9k.
That was the worst thing to happen to me. It created a false sense of making money. And I felt myself losing my motivation to work and focusing more on making bets. Of course I ended up losing the 9k and started making bigger unrealistic parlays to get the money back rage betting and of course lost that too.
Had to take out a personal loan with disgustingly high interest after gambling all I had to pay my rent. I remembered I had saved a lot of money in my 401k. Took out $6k and put it all on a finals prediction. Of course that lost too. I was so disgusted with myself and during that time I remember it being a dark period, I was smoking lots of weed and took some time away from work to recover which I did. I stopped betting for probably half a year.
I got fired from my job for unrelated reasons which caused me to be 3 months behind on my rent. I later bought a car for 5k & flipped it for 10k in a month. This money was going to be used to catch up on rent. Took a trip to Maryland for Christmas (my hometown) and met a friend for drinks at a casino (worst place to meet up). I only went for drinks until some random guy came up to us bought us 2 rounds of drinks and started showing us money he made from his parlays. My mind instantly went to the 10k from the car. I took out 2k and made a parlay…. It hit ! For $10k. I now had about $18k to my name. Could have caught up on rent AND had savings. I tried to withdraw the money at the casino but this specific one didn’t do withdrawals from the app it was another one near my house that does. I said okay I guess I’ll withdraw the money tomorrow.
A girl I was seeing at the time wanted to go to the casino and I continuously suggested we go to the one by my house so I could withdraw my money. I folded like a bitch and said okay I’ll go to the casino I was at the day prior (where I couldn’t withdraw). When we arrive I end up placing a bet of 3.5k and it loses. Now my profit from the day prior is at 7.5k, still enough to walk away ! But I wanted the 3.5 back ! Bet another 3.5 it lost. Then rage bet the last 4k on something stupid that of course lost. 10k winnings gone in a day. To this day I’m not sure why I didn’t go to the casino by my house to withdraw the money on my own as when I won the 10k i truthfully felt I was done gambling once I could withdraw the funds. Oh yeah, that night I took out $2k to bet on some random tennis and lost.
Absolutely distraught the next day, I had $6k in my account (my rent balance). I debated all day on cutting my losses and paying my rent off which would then leave me at $0 but my rent paid. Or try and gamble my money back. What do yall think I did?? Gambled !! I tried putting the $6k on a game to return $18k but my bank only allowed $3k. Anyways I placed the bet and it hit. I now was up 7k. Long story short blew it all.
Now with only $1k in my bank account and a rent balance of 6k and still unemployed looking for a job I couldn’t live with myself. Had enough money to pay out my debts and pissed it all away, the same way I did the last time. I desperately checked all my accounts to see if I had any money left and found 10k in my 401k. Instantly cashed it out to pay off bills.
$6k of that money went to gambling. The other 4 I gave to my mom & gf at the time as a gift. I gave it away because I felt I woulda gambled it away and they may use the money better.
Due to unemployment I made a hard decision to move back home with my mom. From the beautiful state of San Diego back to Maryland. I actually ended up getting a job after 2 weeks here, bought a nice ass car & the first month was going smooth despite breaking up with my gf of 6 years I planned to marry.
I saved up $2k from my job after a month and my aunt gave me $5k to help with my car. Gambling didn’t even cross my mind until this past Wednesday I came home saw a basketball game coming on and SOMETHING came over me and said place a bet. I had been watching the playoffs all month with no urges but something told me bet that night.
I placed a small wager of $250 and lost. I didn’t care , i finally bet something I could afford to lose. Next day won $750. Then lost 500. I said you know what let me place a bet for 1k.
Long story short BOOM I blow $7k in 2 days and now we’re here. I am so disappointed in myself. Been sleeping all day trying to escape reality. I have no money to my name. And have past bills to pay. I feel stupid making the same mistake OVER AND OVER again. I wish I never got introduced to this bullshit. I have a very addictive personality, if I smoke weed once I will smoke everyday. If I have sex once I crave it everyday. And if I gamble once I come back to it the next day win or lose.
This story is to vent but to also tell people to quit this habit , it’s disgusting. What i told myself to feel better is it’s better to learn this lesson young than to be older and lose my family to this. I’ve probably lost over $60k gambling and at 24 I cannot think of what I’d do with that money if I had it. Also posting this to update you guys on a comeback story. I got to get my life right man.

I’m looking into investing this extra cash and I’ve been looking at the different types of accounts on Schwab. I want something that has low risk and low maintenance. If I do the brokerage account, I’m thinking of just picking a few ETFs with low expense ratios and letting that money sit there and adding when I can. I don’t really understand the advantages/disadvantages of a Money Market. From what I’ve read, it seems like your money is more liquid but also there’s more fees involved and there might be a high minimum? However, Schwab’s website says there’s no minimum investment and no transaction fees to buy or sell.
I already have a HYSA with a comfortable emergency fund. I max out my 401k yearly. Just looking to take another step in growing my money. Thank you for any advice!

Hi, I am looking for ideas on ways to maximize our money outside of retirement accounts.
We have investments only in our retirement accounts - 401k, Roth IRA, and 457. Our cash accounts (5% interest rate in HYSA and CD) I feel like it has too much in cash and we should be putting money elsewhere, but I am very risk adverse outside of the retirement accounts. In our retirement accounts, 90% is stocks and 10% bonds. But for cash, I want it there and risk free, but I think I need to start building up a brokerage account or diversifying.
I opened a brokerage account a couple of weeks ago with Vanguard and have $300 in VOO and plan to sprinkle some money in that account on an ongoing basis. For our non-retirement accounts, we also have a little over $80,000 in HYSA and CD (both getting 5%) and then $10,000 in checking and about $40,000 in 529 for our kids.
What are the best options or what would you do? Maybe HYSA for all of it makes sense, but I feel like we are leaving money on the table. The money is for when we need new cars (next 5 years), 6+ month emergency fund, trips and what nots we will want to spend money on before retirement. We are in our mid 40s, our house will be paid off in 3 years. We invest also about $200 monthly to our kids 529 accounts. We max out Roth IRA and put about $15,000 in 457 and 401k on top of Roth.

Bit of a FIRE noob, stumbled upon FIRE a couple years ago but was too late to change a lot of existing investments and haven't reallocated in anyway since.
Also started accumulating cash late 2022 when the layoff cycle hit tech in the expectation of deploying additional cash for a stock/housing market crash, neither really happened so now sitting on more cash than expected and wondering if/how it makes sense to reallocate in some way and if our investments are too conservative overall?
Background

• Late 30s couple, single kid who's 6 months old.
  
• HHI last two years has been $600-650K but likely to drop to half that as spouse is looking at a 6-18 month break from high stress middle-management job in biotech. She's convinced that it will lead to a irreparable drop in career trajectory/comp based on her experience in biotech.
  
• Current expenses (including child care etc) is ~180K a year.
  
• 1.1M in Retirement accounts (401K, Roth, HSA) 50-50 split between target date and SP500, 500K in aforementioned cash (T-bills + HYSA), 600K in brokerage evenly split between SP500 and QQQ, 600K in equity in two SFH rentals. Totaling ~2.8M USD out of which 500K is effectively "cash".
  

Objectives

• Spouse takes a 6-18 month break and transitions to lower stress, lower pay career after that.
  
• I transition from tech to lower stress (like teaching, government etc.) job in ~10 years. That will allow more time with family.
  
• Fully retire in 18 years when kid goes to college (or whatever kids will be doing then), to travel, garden, family-time etc.
  

Questions

• (How/when) should we reallocate cash? Is it too much cash?
  
• Should we invest more in QQQ/tech instead of target date, especially in retirement accounts?
  
• Does it make sense to take a home equity loan on rental property to invest in some form? Current yield is very very low 600K equity (across two SFHs) yielding maybe net $5K/year in cashflow in a good year.
  
• What should be our target invested asset goal given we would like to have ~150K year (in todays money) in retirement?
  

Married, mid-50s, MCOL, with $1.95m net worth. We are both tired of working and trying to figure out when we can afford to retire:
Assets include: $900k in cash/ETFs, $850k in 401k&IRA, $75k equity in primary residence, and a house worth $550k (HCOL, no mortgage but no income bc elderly parents live there).
Liabilities are a $425k mortgage on my primary residence (26 years remaining @2.1%APY), and $30k for a new car @2.9%APY (new replacement for 14y/o car that died during covid bc the small dif between new and used made new more attractive).
I would like advice on how to calculate FIRE/retirement number that isn't a multiple of my current salary since I make considerably more now than I did pre-covid and also facing potential layoffs and uncertain job market for people in mid 50s.

Hi everyone,
I've really appreciated reading many posts in this sub-reddit and would appreciate hearing your input on my current 401K/retirement situation, mainly to see if I'm on the right track and whether there are things I could/should consider moving forward. These things are pretty complicated, especially for someone who's not originally from the US.
I'm 33 years old and I've been in the US for 9 years as a permanent resident. Over the last 6 years I've been contributing to my employer's 401K plan with Fidelity NetBenefits. When I started investing in this account, I did not know anything about 401k/retirement saving in the US and opted for the TDF FID Freedom 2055 K6. After doing more research I'm questioning if this is the right approach, especially triggered by their expense ratio of 0.45%.
My situation is a bit complex because I work for an international organization. They don't allow green card holders to make pre-tax contributions. That's why all of my contributions have been post-tax (I don't really understand the post 86 after tax that's on my allocation picture - hence I included my current breakdown of my portfolio)
I'm currently contributing 12% after tax (on top of the employer match and safe harbor)
On top of my 401K I have the following investments:
* Roth IRA with 14K invested in SWYNX (maxed out my contribution for 2024)
* 3K Invested in Treasury I-Bonds
* 80K in a Schwab Intelligent Portfolio (taxable) - 85% stock/15% fixed, cash, commodities - these are long term investments for me with, potentially to eventually use as a downpayment.
* 15K in a Schwab Intelligent Portfolio (taxable) - 35% stock/ 65% fixed, cash, commodities - this account together with my high-yield savings account serves as my rainy-day fund
Both Schwab Intelligent portfolios I started in 2015/2016 and I've been making periodic contributions.
I apologize for the long post but would really value your input on my current allocation, but also on things I might be able to improve on. Some of my most pressing questions:

• Because I can only make post-tax contributions to my 401K, should I still invest as much as I can in here after maxing out my Roth IRA?
• Should I reconsider my allocation at Fidelty Netbenefits and steer away from their offered TDF?

Thanks a ton!
https://preview.redd.it/rwf77q5839yc1.jpg?width=1404&format=pjpg&auto=webp&s=1832dd80145465288ded565507b853667f709efd

Title pretty much covers it. I'm 53 and trying to figure out where to direct extra money. I had to take out a HELOC to cover some breakup expenses related to my house. The current balance is ~32k with a 150k limit. It's still in it's draw period and will be for the next nine years. Current interest rate is 9.8%. I contribute 6% to my employer 401k, which maxes out the match. In revious years, I would max it out, but I've been focused on paying down the breakup debt and increasing cash flow. Other than my 30 day runway, I don't have an emergency fund. I don't carry CC debt. They are paid off twice a month when I get paid.
Am I crazy to prioritize the HELOC pay down over an emergency fund or maxing 401k? My thinking has been that I have ~120k of available credit in the HELOC and another ~50k of CC that I could use in an emergency. Paying down the 9.8% debt also seems better than maxing out the 401k in the short term. Once that is wiped out, I plan on maxing both the base and catch-up contributions going forward.
Summary: 32K of a 150K HELOC at 9.8% No CC debt 6% 401k (max match) 30 days of emergency fund ~180k of available credit if needed.
Edit: A better summary of my conundrum. If I have access to ~120K at 10% at a moments notice, why is it preferred to sock away an emergency fund that earns ~4% instead of knocking out the remaining 32k HELOC balance first, then build the emergency fund? The math seems to prefer wiping out the HELOC first.
Thanks for your input. :)

First off, I know this is a very privileged problem and I hope this is an okay question for this sub. Its not mom specific but relevant to growing a family and this is the only sub I trust to give real advice without the negativity.
My husband and I own a home now that fits our needs but as we are trying for child number 2, we will quickly outgrow the size, though its doable with some basement renovations. Also there are slightly better school districts nearby I'd like to move to. Our current district is good and it's the one I attended myself, so all in all, we do not NEED to move.
Without getting into the numbers, basically we currently have a very low mortgage thanks to low interest rates plus just a smaller house that I bought a couple weeks before starting to date my husband. So I could afford this house on my own, on a much smaller salary 6 years ago. Meaning we are in a great position for saving money each month and don't need to pay the closest attention to budget. Again, very privileged.
Now we can on paper afford some really great houses in the next town over that we would intend to live in until retirement in 25-30 years. However this would mean we both have to keep our salaries where they are now. It's not a concern at all with my husband who's in a high demand trade and can easily get work no matter what. I'm the higher earner (IT product management in a global consumer and industrial goods company I've been at for 10 years now) so my job loss would be a substantial hit and mean draining savings until I'm employed again.
I've talked to 2 mortgage lenders, my realtor, a financial advisor and of course my husband about this. I just keep spinning on whether we commit to this and structure a budget now to prepare us, or forget the move and focus on making this house work. My husband loves the idea of a new house but growing up he was always worried about money and is starting to doubt whether we should proceed with the house hunt. It's specifically coming to a head now because we just found THE house and are seeing it Sunday. It's very possible in this market we don't get an offer accepted but we have to decide if we are all in now.
So, who has done this? Stretched themselves a bit to get the house and either regretted it or are super happy?
Edit: You guys are truly awesome. To clear up a couple overall questions, I've been over the numbers and running scenarios like a lunatic so when I say "on paper" we can afford it I mean I've done the math, not JUST that a mortgage lender is willing to work with us. We max out a 401k and 2 IRAs and have some additional retirement focused bonds/savings and college savings. We have no other debts as we buy cars in cash and are generally risk-averse up until maybe now. Our current savings in a HYSA plus current house equity would give us a 20-25% down payment and still have 6 months of emergency savings after purchase. My main fear as most of you definitely understand is that we could not survive on one salary for long if something were to happen, especially if our mortgage increases at the same time as many of you helpfully pointed out will happen to some degree. The comments so far have been super helpful to get more perspectives and data points, and I'll keep reading through each one and responding when I can.

Greetings,
Long-time lurker both here and on bogleheads.org. I was hoping for the hive-mind's input regarding my family’s general financial status, as well as help assisting with a traditional/Roth IRA pro rata issue I stupidly placed myself in.
Background
My wife and I (both late 30’s) have one infant daughter. We live in a PNW city somewhere between M/HCOL.
I am an attorney making $150,000 per year. I expect this salary to remain relatively steady (i.e., unlikely to receive a large “win” bonus), although in four years or so I may make partner, with most other partners making between $225-$325,000. I also will soon be eligible for a profit-sharing plan, the details of which I am not yet entirely familiar with. There is no 401k or any other retirement plan offered. I view my current job as stable, and family-focused (i.e., I am not interested in seeking to up my earnings by spending more time at work).
My wife recently took a job with a health nonprofit where her starting salary is around $90k per year. She will be eligible to receive matching contributions in one year, the details of which I haven’t fully dived into yet.
~Debts~

• Mortgage: $400,000 remaining at 3.25%.
• Recreational Cabin: $67,000 remaining at 5.10%.
• Car note: $14,000 remaining at 4.25%.
• We currently pay approximately $165 per work day for a nanny (this may shift as we explore day care options).

~Assets~

• $569,000. My defined contribution/401(a) retirement plan from an old employer. This is split into a variety of funds (domestic/international index, stable asset, target date, and smaller amounts of small cap and emerging market). (Note: neither my wife nor I currently are eligible for social security due to the Windfall Elimination Provision. I may be eligible for a select amount in 20 years, and full if I chose to work until age-69).
• $225,000. My wife’s defined contribution/401(a) retirement plan from an old employer. employer. This is purely a target date fund, 50% of which is in a Roth option.
• $113,000. HYSA based on when we sold our old house. (note: I understand we are cash heavy in relation to our assets. I am open to deploying a significant amount- perhaps half- of this capital towards index funds, assuming I can talk my wife into it!). I add around $500 to this per month.
• $30,000. Checking/savings account (this amount stays relatively stable).
• $24,000. IRAs. Almost entirely ROTH. Includes single stocks and some bonds, although I have been gradually making the shift to index funds. I do have $120.00 in a traditional IRA I (very stupidly) contributed to in 2022 and 2023 (more on that to-come). The $120 is now in cash, but was previously in single stocks and likely has $20 worth of earnings associated with it.
• $15,000. Brokerage account. Mostly index funds, some CDs, and the rest in a MMF. I add around $500 to this per month.
• $7,500. 529 for our daughter’s education. We have been adding around $400 per month.

~Health/Insurance~
We both are in decent health, and have very good health insurance. I have a $1,000,000 life insurance policy through State Farm (I sought out long term disability and employment riders, but due to health history State Farm's offerings were prohibitively expensive- I anticipate reevaluating insurers in the next few years). My wife is going to be obtaining life insurance through her new employer soon.
~Goals~
My primary goal is to ensure my wife and I have enough to comfortably retire (and potentially retire or semi-retire early if we desired and while in good-health), as well as make sure my family is secure in case of my death. We live relatively modestly, but still enjoy going on vacations, visiting family, and eating and drinking well with friends.
I am feeling pretty good at the moment, but am always curious as to whether I’m missing any blind spots (please give me more to worry about!). I recognize I did not compile a budget, which is on my to-do list.
One issue that is not a blind spot, but I do not entirely know how to fix, is what to do with the traditional IRA I (very stupidly) chose to fund in 2022 and 2023. My wife and I have not gone over the Roth IRA income limit in the past, but will be over next year. I spoke to my personal accountant concerning this, and she was not helpful/knowledgeable. I don’t know what the solution is to ensure I can do a backdoor Roth in 2024: I have gone through subreddits and the boglehead forum, and still am not entirely sure what to do. I do know I do not want to pay my accountant to reopen tax years or anything like that.
One thought I had was to withdraw the entire $120 before December 31^st of this year, and pay the penalty in next year's taxes. My question to the group would be, would this then permit me to make a Roth conversion on January 1, 2024 without the pro rata rule coming into play?
Frankly, I don't know if I'm thinking about this problem correctly, which is why I am soliciting feedback here.
I would say this stumbling block is having a substantive impact on our finances, because neither my wife or I are currently in a retirement saving plan (as noted above, we both have access to one within the next year), and money I would prefer to go into a retirement account is instead going into our HYSA or brokerage.
Thank you all for your time and consideration, I appreciate it.

Throwaway for privacy.
I originally planned to RE last year, but decided to stick it out for one more year. I've run all the models, and things look pretty good, but I'd like to get some feedback on whether we're good to go or if I should stick it out for another year (again).
My wife has a 7 day on/7day off schedule and likes her job. The schedule leaves a lot of options open for travel and gives us plenty of time to spend together. She doesn't plan to RE at this point, but I prefer to plan as if she will (adds some cushion and leaves the option open to her). She is supportive of me RE'ing.
Demographics:
Married (37/36), 3 kids (11, 10, 6)
Assets:
Checking/Cash: $45.4k
Taxable: $1.19MM
Traditional 401k/IRA: $870.3k
Roth IRA: $361k
Cars: $56.5k
House: $517.3k
Debt: None
Net Worth: $3.04MM
Liquid portfolio: (investments + cash): $2.47MM
Asset Allocation:
60% Total US Stock Market
40% Total International
No bonds at this point, but may reconsider moving ~5-10% to bonds with interest rates yielding something more meaningful. Not sure it's enough to be meaningful.
Spending:
10 year inflation adjusted spending: $86.1k per year
This includes car purchases, OOP medical, and medical insurance payments. When my wife retires, medical expenses with ACA plans seem to be in the same ballpark or slightly less. It excludes daycare from the earlier years and my wife's grad school expenses since they aren't relevant to future expenses. It also includes some less than frugal years towards the beginning.
5 year inflation adjusted spending: $78.4k (including a $23k car purchase last year which is adding $4500 to that number)
Future expenses-- No major changes expected until college. We have not done 529s to date, but do plan to pay 4 years at an in state school for our kids. For 3 kids that will be approximately $300k total with no aid (based on today's tuition).
Future income
Imminent stock vest-- $90k (post-tax total)
Late 2024 stock vest-- $90k (post-tax total)
2025 RSUs - ~$150k in total
My income-- $180k/yr
Wife's income-- $121k/yr. Not planning as if this will stay long term, but I don't see her leaving within the next couple of years.
Open questions
* If I pull the plug this year, is it worth sticking around until the end of the year? It'd be great to have the summer to begin my retirement. I have ~4 weeks of PTO I can take over the summer to help bridge the gap, but truly unplugging has been challenging.
* Is a 529 worth it? We've been on the fence and prioritized mega backdoor Roth, but our taxable accounts have grown substantially. Our state gives a tax deduction (3.07%) which is a minor advantage. Tax bracket in retirement could be low enough to give tax credits and/or 0% LTGC rates which reduce the benefit of a 529.
* Anything I'm missing?

For starters, I understand that my poor spending habits and lack of budgeting over the last several years have led to me the spot I’m currently in. I take 100% responsibility and am not blaming anyone but myself. I am embarrassed, and just wanted to come here to see what my options are.
Me: 27 y/o male. Live at home (no rent), though I had to move back for financial reasons. I was previously paying over $2k a month on housing. My job pays $75k base and up to a 15% annual bonus that’s paid out throughout the year. I have two masters degrees (just graduating with my second this month) and know that I can get a better job and raise my income this year, though the market for white collar workers in my sector is very poor.
My debt: $132,125
CC1 = $5,885 CC2 = $4,805 CC3 = $1,928 Affirm installment loans = $1,452 ($20-63 monthly) ER bill = $552 ($69 monthly) Auto loan = $22,503 ($407 monthly) Student loans = $95,000
My assets: $19,503
Car value: $12,000 401k: $7,503 (at 6% contribution to meet max employer match)
My other monthly bills:
Phone = $118 Car insurance = $75 Gym = $50
Credit score is in the 660s. It dropped from the 720s as I maxed my CCs. I’ve never missed any payments in my life.
I had a bad accident last year and had a lot of medical bills that ate into my budget at the time and led me to start using credit way more than I should have. I got too comfortable with it, and ended up paying both bills and bought luxuries and ate out too much. Racked up way too much CC debt. I added another $6k to that because I was promoted by my job in December and started my current role, but the company went on an expense freeze and delayed my new (much higher) salary until April of this year. They told me it would be prorated and I would see back pay, but then they walked this back. So I’m out thousands that I thought I would be getting, plus my first bonus from my new role. My car loan just added $4k because apparently my insurance doesn’t have the proper collision coverage, and I literally just saw that this morning. The balance was previously $18,503. My student loan payments will start in May of 2025.
I feel so trapped, and it’s terrible seeing people my age buying homes and knowing that I am very far off from that. I live near a coastal tourist area and am going to apply for part time serving/bartending gigs at very busy places to make as much extra cash this summer I can and throw it all at my CC debt. My grandparents also have a lot saved for me when they pass, and they are willing to give some early, but I feel so awkward and horrible asking for it. They’ve helped in the past when I’ve moved and with deposits on rentals, I just feel awkward asking. I’m thinking of asking for $5-10k now. When my parents are gone, I will be inheriting a property valued over $5 million, so I’m not worried in the long term (as horrible as that sounds), but I want to get out of this hole and buy my own house on my own.
I’m debating looking for work abroad so that my student loan payments will be $0 based on not having any US income, but I’m wondering if it would be best to just declare bankruptcy and give up my car before I move abroad. While I’m an experienced world traveler and speak several languages, I worry I would get homesick after a while. I do love my country and don’t want to feel like I’m running from my problems, but it may be the best bet for the time being.
Should I try to get a consolidated loan for my car + CC debt, or just for my CC debt? The interest rates on my cards are all around 30%. I have no idea what to do. I really want to buy a house by the time I’m 30.
I appreciate your help. Thank you Reddit!

I'm a 26M and my mom has a whole life insurance policy on me that she started when I was pretty young. I want to say it was around 12 or 13. I have been told the locked in rate is relatively low. Recently she has mentioned she wants to pass the policy onto me and have me pay. However the kicker is this. She still wants to be the beneficiary and has expressed how good of an investment it is to have this policy especially since they started it when I was so young. From what I've read though this just seems like a poor return. I have got to imagine the cash value of the policy is pretty low due to the low cost as well as any dividends or loans that I can potentailly take out on it. Is there any world where it makes sense for me to pay into this where she is the beneficiary? I am single, no kids no dependents etc. All debts I have are soley in my name and my employer has 100k of life insurance as a benefit. From what I've read I'm better off putting what I would towards this policy into my IRA or extra contributions towards my 401k.
I'll admit I'm not the most versed on this product so maybe I'm missing something?

I decided to file for ch. 7 on 4/12 and my 341 meeting is on 5/16. My case was relatively simple- $58k owed. No assets but I do have a small 401k and some company stock (vested $2k). The issue I have now is that the car I was borrowing from a relative broke down and is no longer safe to drive. I no longer have reliable transportation to drop off my son at the babysitters and get to work and public transportation is a nightmare here. I work about 30 min away from where I live. I tried Uber and it has been a pain getting my child’s car seat on/off each time and not to mention they are expensive. I also thought about renting a car, but it will be about $800 a month (not including gas or insurance). I currently don’t have $2k in cash to go out and buy a car off craiglist. I actually can’t find anything that looks reliable or safe for that price or lower in my area on craigslist. Id rather finance a used, reasonably priced car. I did find a Honda dealership that has a financing department that specializes in working with BKs. They told me that most of their clients go in before their cases are discharged and are approved. They were sending me financing letters right after I filed so this is how I know about them. However, when I let my attorney know about my desperate situation, she told me that she would have to file for a motion to incur debt and that this will take a month to get approved and that i will need the VIN, year, make, model of the car I want before she can file. She also stated that there was an additional filing fee for doing this, but she didn’t mention how much. She also told me that she doubts I would get approved for a loan. The dealership on the other hand told me that they dealt with these situations all the time and they already pre approved me and that they never had their clients have issues getting the loan with a pending ch 7. I was wondering if anyone else was in this situation and could get a second opinion.

A wealthy and genius-level astrophysicist, Jessica Sanchez cashed out her 401k and stock options and quit her job.
She purchased a van to live in and embarked on an artificial intelligence-assisted planned world tour, going on road trips and cruises while hiking, cycling, surfing, and even flying her own private plane.
Her phone rang, so she answered.
"How are you doing, honey?" asked her mother.
"Fine, enjoying every day like it's my last!"
"Your father and I are concerned about your behavior. What will you do when your cash runs out? You have to work and save for retirement."
"Oh, Mom, do we have to argue about this every time we talk? I've got to go. I'll call you later!"
Jessica wiped tears from her eyes. She pulled up a computer terminal in her van and communicated via voice with a customized AI, Bob, which she used to hack into the James Webb Telescope.
"Good morning, Bob. Time till impact?"
"The same Jessica, approximately five years."
"It'll wipe out everything?"
"That's correct, Jessica. After the initial impact, which triggers a cascade of cataclysmic climatic, infrastructural, and social upheavals, the answer to your question is most assuredly, yes."
"All right, Bob, let's plan another trip!"
​