That’s the thing though. I want to start getting ready to make big financial moves in the next year or two. So I want to get my credit in order and pay shit down, not wait 7-10 years for it to fall off. But if they aren’t gonna remove the collection from my account. Well I’ll let a credit professional take a look and advise me first
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Yeah, my bad marks from 2014 won’t fall off until 2021 or so…
Ok I’m thinking of contributing to a 401k through my employer with the intent of borrowing the money after it grows a bit to help fund by real estate venture 2-3 years from now… The thing is though from what was explained. I can put as much as 90% of my income. As far as I know that is unheard of. And also this is a contracting employment agency so that may be why.
Also they mentioned that I get a tax break on my federal and state income tax equal to my contribution. So it sounds like not only will they match a portion of my contribution. But the tax break basically replaces the portion that would go to my 401k.
Also they provide different 401k options with 4 main categories. Income, Growth&Income, Growth, Aggressive Growth. Now the aggressive growth accounts were vanguard accounts which I’ve heard mentioned in the thread. So I’m thinking contribute 10% with all of it going Into the aggressive growth account.
Thoughts and suggestions?
Try a roth option if you can…
Yeah that have that as well. I did more research on the 401k and the taxes and penalty on early withdrawal is MASSIVE. Is Roth IRA penalty not as steep? Because I want to use it to fund an investment 2 years from now. Or am i better off without it?
There’s a LOT to talk about there, but the ultra short version is don’t fund a real estate purchase with a loan from your 401k. The danger with a loan from your 401k is that if you leave your job for any reason, you’ll have less than a year to pay the whole loan back regardless of whatever repayment plan you were on, or you’ll get hit with the tax penalty for early withdrawal. No big deal if it’s just a couple of grand you borrowed, but REAL ESTATE money? Hell no. You’re better off just saving that money up outside of your 401k.
Couple of other things: there is an annual limit on how much you can put in a 401k ($19,000 this year, it goes up occasionally). Roth can be good, but it’s not always automatically better than a normal 401k. Vanguard is a good company, but not everything they offer is fantastic, don’t just throw money at them without checking out what you’re actually getting.
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As Reticently explained, the normal advice is to never take a loan against your 401k.
NORMALLY a 401k is retirement money and you’re socking it away with the intent of not touching it for decades, so it makes sense to have growth-oriented investments. (More prone to volatility and may lose money in the short term, but should see bigger gains over the long term.)
But you say you want to use the money 2 years from now, and I’m not sure you can even get the money out of a retirement plan that fast. If you’re really set on that goal you should definitely research that some more.
Probably the way to go about your 2-year plan though would to be to only contribute to the 401k up to what your employer will match and then invest the remainder of the 10% you had in mind in a normal brokerage account. You won’t get tax benefits on that investment outside of the 401k, but you won’t have the constraints that go along with the 401k. (It’s generally good to always contribute up to the employer match if you can afford it.)
The old wisdom was to move money that you’re going to need into conservative investments about four years ahead of time on the theory that bear markets don’t last longer than that. Which would mean, if you want the money in 2 years you’d stick to conservative investments all the way.
Market’s been crazy these years though, so who knows. You could lose out on a lot of gains or that record-setting growth could finally give way. I’m probably too risk-adverse to give unbiased advice there 
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just heard that Wells Fargo has an investment account that you control (no banksters… I mean bankers control them). There’s no minimum balance to have the account but you have to pay a certain fee on trades and so forth…
Long story short about roths; a roth is better in the mid term and long term than a non-roth, not sure about short term though.
Reason being is that in the mid term and the long term the taxes will most likely go up. In other words when you cash out the roth, you don’t pay taxes since you pay as you go. Don’t know about the penalties though. May depend on the institutions…
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After doing more research my best bet would be to put money in a brokerage account and invest aggressively. 401k, roth IRA, CDs etc are all too long term for the moves I’m trying to make in 2 years. So I better start learning about stocks and shit.
I dont see myself day trading but i do want to be aggressive with my investing.
I think taking out an actual loan from the bank is a better option than borrowing from a 401K. The penalties are just too high and you probably aren’t going to come out ahead.
https://sharpcredit.com/2019/09/19/8-reasons-to-never-borrow-from-your-401k/
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Yeah that’s the main goal. To take a bank loan out for a rental property. I just want to put together a good down payment for it in the next two years and have extra money for repairs/ renovations and vacancies.
The lady I got to help fix my credit already got 2 collections removed from my records. I got one more collection left to get removed & im debt free, bros 
I was a bit nervous bout spending money with someone I don’t know, but she’s the real deal
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I got targeted by a scammer over the past 3ish weeks. They’d call every day, sometimes 10-15 times a day. They also tried spoofing CID on local law enforcement agencies to try to get me to pick up, and I was almost at the point of changing my phone number. Luckily, I found out about an app called Should I Answer; and set it to block incoming calls that were not part of my contacts. The calls have vanished pretty much and it’s a lot less calls coming in than before.
Gonna be starting on working on my Debt Snowball very soon.
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For debt, you guys doing the Dave Ramsey thing???
yeah, the missus gets free access to the Ramsey Solutions platform as an manager at her company. We’ve kinda fallen off of it though because of stuff going on.
Some sage advice for life and other things:
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Dropped a grand on the principle for my car note in addition to the monthly payment. Felt good seeing that principle balance go down like that. I’m gonna shoot to have it paid off by the third year of the loan. Which is April 2020.
Good! Back in the early 2000s when I bought a new car, had a loan for 5 years but paid it off in 3 years but they still gave me “free” routine maintenance for the full 5 years!!!
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Master P talking about finance:
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