Thatababy by Paul Trap for April 30, 2016
April 29, 2016
May 01, 2016
Transcript:
thatababy: dear thatababy@thatababy.com, i'm starting a new job and have a 401(k) with my former employer. should i roll my 401 (k) over, or use the funds to pay off my credit card debt? carmen colter, williamson, wv. carmen, you should cash out your old account immediately, and use the money to invest in pokemon cards!! i think in four or five years, carmen is going to look back and be happy she asked a baby for financial advice.
determine the paying interest of the credit card debtas opposed to the earning interest of the credit card amountthat would be subtracted from the 401Kthen add the amount of tax that will be owed for the 401K withdrawal amount.if it’s a HUGE credit card amount then withdrawing the 401K would probably be the right move…if not….nonow, having said that—-I don’t have a clue what I’m talking about because i’ve never had a 401K and am not familiar with the particulars—I’m simply using logic—-am i even close to correct?