Early Withdrawal

I learned that my previous 401(k) company, Great West Retirement Services (GWRS) will be charging me a “termination fee.” My employers said they’ll contribute to my 2017 401(k) to make up for this fee, but it still reduces the overall amount under the tax shelter.  This is the kind of evil bullshit the finance industry is best at.  Nothing I can do.

I’ve been thinking about the more aggressive condo paydown plan.  It’s becoming more appealing over time.  Specifically, because even if I only execute part of the plan, it still puts me in an emotionally appealing spot.  If I only execute 1 month, the balance goes from $50k to $33k, 1/2 to 1/3!  If I execute only the first 3 months, the remaining balance is $18k, which is pretty damn low.  You know that can’t last more than 18 more months.  I could do 3 months of condo, and then switch to maxing the 401(k) for the rest of the year with good confidence that I could return to the condo pay off and kill it in 3 months.

Another thing I could do is only focus on the first 3 months period.  Perhaps phrasing it that way would make it easier to sacrifice more.  If I eliminated all my savings in that 3 months, I could do $16k+$11k+$8k extra, leaving me with a $12k balance (and no savings), but with 9 months left in the year to take care of everything and a guarantee that the mortgage would be dead in early 2018, worst case scenario.  No savings isn’t the best plan for job switching, but maybe I’ll know by then whether I am going to switch jobs.

Future me would have a mortgage balance of $3k or $4k in that scenario.  He’d feel pretty good about that, right?  What if I had a mortgage balance of $4k right now?  Well, it would be nice, but I’d still have a mortgage payment.  I’d really want it to just be dead.


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