Quote:
Originally posted by ARTelevision
dang - all that cash just sittin there.
well yeah it has risen about 30% - so that's what I'd be losing I guess.
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I disagree that the cash is "just sittin there." The entire purpose of the 401k is tax-deffered investment.
The 401 may not be the fastest, or highest return investment, certainly not like real estate or stock playing. However it is a beautiful way to invest over time, especially considering the tax advantages.
A bit I picked up from the Motley Fool's website, if your 401 is invested in, say, the S&P 500 index, which has steadily returned 10% since 1926, you put the money in and wake up years later much richer.
Like they said (in more detail) above, cashing a 401k is a bad idea.
Bad idea.
You'd have to make an impossible return on whatever you invested in.