OK, financial gurus, how stupid is this idea.....
#1
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As some of you know I was recently laid off, but received a decent severance.
I'm considering returning the '15 BRZ to stock (ground controls, 18x9.5 RPF1s, Open Flash tablet, MXP Cat-back), pulling a bit of cash from 401k to make up any negative equity from it being such a new car and ditching it.
I would then go find a nice NB2, put some down, and essentially knock vehicle expenses by roughly $425 per month.
Thoughts? I'm hoping to get a job fast enough that unemployment will carry me and not have to touch my severance so I can just leave it in savings.
*I don't need a lecture about living within means, I was doing it when I was married (which ended a few months ago), we lived in a small house and I was able to drive a new car and still put 4 figures into 401k and savings per month.
But life has decided to hit the reset button for me.
I'm considering returning the '15 BRZ to stock (ground controls, 18x9.5 RPF1s, Open Flash tablet, MXP Cat-back), pulling a bit of cash from 401k to make up any negative equity from it being such a new car and ditching it.
I would then go find a nice NB2, put some down, and essentially knock vehicle expenses by roughly $425 per month.
Thoughts? I'm hoping to get a job fast enough that unemployment will carry me and not have to touch my severance so I can just leave it in savings.
*I don't need a lecture about living within means, I was doing it when I was married (which ended a few months ago), we lived in a small house and I was able to drive a new car and still put 4 figures into 401k and savings per month.
But life has decided to hit the reset button for me.
#4
Boost Pope
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There are NB deals to be had out there. The youngest of them is now 10 years and two generations old, and the prices are reflecting this.
#6
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<br />The one thing I'll say is if you need to pull money from your 401k, take a loan against it instead of a hardship withdrawal. <br /><br />When you take a loan from your 401k you actually pay yourself back with interest instead of taking the tax bath as a result of liquidation.<br />
#8
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Most will let you take a loan at any time.
*full disclosure*
I'm a mortgage loan officer
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#9
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2015 BRZ Limited ~8500 miles
18x9.5 Enkei RPF1s with 255/35 Dunlop Direzza IIs (maybe 2500 miles no track or autoX)
Ground control coilovers/camber plates 375f/425r spring rates
Open Flash Tablet
MXP Catback exhaust
Switched to all Motul synthetic fluids in engine/transmission/diff at 6100 miles
Not sure what I'd want, if you're friend is interested, I'll call the bank and see where I'm at. If he's interested, I can get it cleaned up and get more pics.
#10
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I could, but given recent events, I'd REALLY like to keep as much reserve cash as possible. As it looks like I'm going to have to move to find a job, and who knows how long that will take? Not to mention, depending on where I moved to, I'm looking at about 5-7 cities, that really quickly eat up another $3k+ in cash.
Bang! Correctomundo.
Bang! Correctomundo.
#11
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I could, but given recent events, I'd REALLY like to keep as much reserve cash as possible. As it looks like I'm going to have to move to find a job, and who knows how long that will take? Not to mention, depending on where I moved to, I'm looking at about 5-7 cities, that really quickly eat up another $3k+ in cash.
Bang! Correctomundo.
Bang! Correctomundo.
If for some reason you need cash short term you can still pull from a 401k/IRA/retirement vehicle for up to 6 weeks without Incurring any tax penalties, provided you can return the cash in that time frame.
#12
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Another option is to buy a cheaper car cash to get rid of having to carry full coverage insurance on it. Like a high mile civic for example, or even a high mile NB but something cheap you can buy for like 3K and pay cash, then just carry liability insurance to save money on insurance as well. Once you find your new normal you can adjust your cars as needed.
Agreed on sell the BRZ as you described (return to stock first to minimize loss on parts purchased). I would do that and get that thing looking NEW and try to find the right buyer to get the most out of it.
Agreed on sell the BRZ as you described (return to stock first to minimize loss on parts purchased). I would do that and get that thing looking NEW and try to find the right buyer to get the most out of it.
#13
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^That's probably the best bet, but putting $2-3k down on a nicer/newer NB that wouldn't need immediate maintenance might make life a little easier.
Especially if I end up having to store my big stuff here at my buddies house, and put my clothes and inflatable mattress in the car and having to drive across the country for a job.
Especially if I end up having to store my big stuff here at my buddies house, and put my clothes and inflatable mattress in the car and having to drive across the country for a job.
#19
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<p>There's been a lot of advice given on the topic of 401K/IRA things. Some of it good but a lot of it false. A great resource is the IRS for <strong><em>fairly</em></strong> clrearly written rules on just about everything related to this. Rather then generalize and possibly mistype something I'll link to the index page. Most of the answers on the subject of loans, withdrawals, rollovers are there and clear.</p><p>I hate to see somebody get screwed over financially because of wrong advice; Site Index ? Information for Retirement Plans</p>
#20
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<p>There's been a lot of advice given on the topic of 401K/IRA things. Some of it good but a lot of it false. A great resource is the IRS for <strong><em>fairly</em></strong> clrearly written rules on just about everything related to this. Rather then generalize and possibly mistype something I'll link to the index page. Most of the answers on the subject of loans, withdrawals, rollovers are there and clear.</p><p>I hate to see somebody get screwed over financially because of wrong advice; Site Index ? Information for Retirement Plans</p>
Temporary withdrawals are commonplace in CA when home buying to meet reserve requirements for jumbo loans. You don't pay tax immediately, and you don't have to pay tax at all if its returned within a certain time frame. That said, check with your financial planner/institution/CPA first.