Cash it all out??
Terry,
I love listening to your perspectives/advice on wgn radio. I have a question which I know the smart answer to but would like to ask anyways.
I’m 43 years old been working at the same company for 20 years. I have a pension and 401k. I don’t know how else to describe it other than I’m burnt out and just tired of corporate America. I have some entrepreneurial aspirations but of course would have to take a risk and put myself out there. I have three kids and wife who works (owns own business but is not the bread winner). Kids are 9, 13, 16 (lots of thoughts about college expenses starting to surface).
With all that said I wake up every day and think to myself what is the safest way to transition to a new career. For the past year and half I’ve been working a “side hustle” and have had some success and really enjoy it. Hard to say if I could replace my current income if I made that side hustle my full time gig.
With all that said I could take an early pension buyout and of course have to pay a crap load of taxes on it to keep that money available to help me transition for a year or two. I know it’s not the smart solution, but again I contemplate cashing out 401k and pension pay the taxes and pay off all my debt and transition. Again I know this isn’t a smart idea….
What advice would you have?
Thanks!
Terry Says
You’re right. This is NOT a smart idea! Did you want to hear me say that? Now, you’ve heard it.
But don’t feel like a bad guy. You’re not alone in wishing you could chuck it all. I think it’s time to take the wife (and maybe the kids, or maybe the grandparents could babysit) for a week at a VRBO. I’ll bet she needs the relief as much as you do.
And you’re entitled to this time away. I’m not a relationship advisor –but maybe you each need to take a separate vacation– she can go to a spa for a few days, and you can go fishing. (Anything but Vegas!)
Then look at it his way. You only have 12 years to go. People do worse hard time. Plan for a vacation every other year, and it will give you something to look forward to. A “side hustle” is only that — a mental escape. So if you’re selling sneakers out of your car on eBay or trading stocks in the evening, remember this is only a hobby.
Do NOT give up a good job, a pension AND a 40l(k) on a whim. You made those kids and you are responsible for them. That’s the Savage Truth!
