Looking for serious advice.. Should I sell my Truck? Struggling.....

Bad idea. Time is your ally here; don't touch your investment funds. They are for investment, not bailing out bad debt.

The idea is to get straight without touching those funds. Let them grow and work for you passively over time, trust me.

Sell the truck and move on.

 

Geez, there is some good advice and some terrible advice in this thread.

 

every thread on TW pretty much

 

A new vehicle is used the second the wheels go over the curb. Every vehicle you see on the road is used. Be your own bank. Anyone who has 100K or more in the bank should finance their own vehicles. You won't
t need that money for many years. Then you can take as long a note as you wish.

when you are using YOUR cash it tends to make someone think twice about the purchase, IN your case you should pay off all debt THEN save, It is far better to receive interest than to pay it.

 

This is what I did with my 13. There will always be trucks but you can't get back time and it sucks to be strapped for cash due to a huge payment

 

It depends on which is more his vehicle loan or the interest he's getting on the 100k. In today's market even a monkey can average 7% or higher.. And while the 100k can be built back up, the loss on compounding interest cannot.

Say you finance $15,000 at Toyota's promotional rate of .9% whether you do 36 months, 48 months or 60 months the total interest paid on the loan is within $150 between all 3 ($209, $277, $346). Adding an extra 24 months doesn't mean you cannot afford the vehicle it just means you can have the added insurance of not having to always pay $428 a month. You'd be dumb NOT to take 60 months at .9%, since even an online savings account now offers higher interest rates than .9%... Use your money to make money and use Toyotas money to buy the truck. $350 in interest paid over 60months on a $15,000 loan is chump change.

 

The match is limited to 6% of contribution. I can always resume during the year and still get he match.

 

My month to month costs have risen with each kid. My kids are a 2.5 y/o and 7 m/o, and another one is coming in August.

what's killing me right now are these daycare costs. for two kids, daycare is 2200 dollars, and this is the cheapest we could find. I have a Childcare FSA, so I at least get to write off 5000 of this. My wife is going to be working for home following the new baby, so this will help.

I didn't plan to have this third kid, but as Christians, my wife and I chose to keep the kids.

 

Serious advice: Sell the truck. Do NOT withdrawl from your 401k and keep contributing up the the 6% match. Find other ways to cut corners until you can get past your present situation.

 

have equity in the house?

 

My student loan is currently $1K at 6.3% and $5K at 3.2%

The auto loan is $26K at 3.25%


My wife drives Mini cooper Country Man S. We plane to replace that with a used Toyota SUV not sure on which one though. I don't want to spend more than $15k A van is ideal, but my wife refuses to drive a van because it makes her feel old. Vans are really expensive now, so I rather not buy one.

I got two car seats in the Tacoma right now. I feel I could get a third one in with no problem.

 

The loan against your 401k is the way to go. You can make that a longer loan at a lower payment. Interest rate should be competitive, but it's not that big of a deal since you are paying yourself that interest.

In short, get 401k loan and pay off all debt. Make loan long enough that that you can comfortably make the payment and continue your 401k contributions. Don't let free money pass you by...

 

I am not a home owner. I plan to own a house at later time. Homes are just way too expense in my local area. I just can't pay $1.5 million for a 2000 sqft house. I refuse to do it. There is no justification in my mind for that price.

Right now I make decent money, and I want build more assets. After that, I am going to leave the SF bay area if not California for good.

 

The thought of withdrawal from my 401K scares me, but i will do my research

 

you are borrowing from yourself and paying yourself back instead of "The man"

 

I know how you feel. You will need to check your plan. I know of one company that won't let you continue contributions if you get a loan, but that's pretty uncommon as far as I know. There are also implications if you lose your job while the loan is outstanding. You'll need to check what those may be.

 

Dont you get hit with fees and penalties and taxes?

 

There is usually a small administrative fee. No penalties or taxes unless you don't pay the loan or leave the company and don't pay the loan within 60 days (depending on plan).

 

fees are based upon the 401k originator, but most only charge like $25 to take a loan out against your 401k while allowing you to contribute and pay back at same time. If you are fired or leave usually you have to pay back the amount in 60-90days or they will nail you on your taxes for it

 

Working from home as a parent will help tremendously. Without knowing your incomes, it could be cheaper for one of you to not work or work part time instead.

I do agree with paying more on the truck versus the student loan, since the latter give you the tax credit.