Ohhh....don't cash out your 401(k), unless you're 59 1/2 years or older. If you do, you're going to get hit with the following:
Federal income tax
State income tax
10% excise tax for early withdrawal in addition to tax
Why not have debt? Money is cheap with the low interest rates we have, and you can leverage that to higher earnings.
Let's see if I remember my finance classes here....
Say you put in 10,000 to start a business, and plan on earning 7%. You're total income for the year - $700. Amount you have invested - $10,000.
Next scenario - you put in 5,000 to start a business, and borrow another 5,000 at 5%. You again earn 7%, or $700 total. You then need to pay back $250 in interest. Total earnings - $450. Total invested - $5,000. Your return on equity - 9%. This is called leveraging.
This works as long as your income % is larger than the interest cost on borrowing. Anyone who is currently in a finance class and find any errors, let me know.
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Blistex, in regards to crappy games -
They made pong look like a story driven RPG with a dynamic campaign.
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