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KPMG I cleared all the rounds of my interview with KPMG and was asked to provide necessary documents and fill a CAF form a week back and had a HR discussion too. I have requested for about 3Lakhs additional fixed pay since my current CTC has increased and HR said she will get back on this. It's been a week and haven't heard back on the offer letter. How long do you think I should wait. Please wait.
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Rising Star
I would not touch the 401k
Did you factor in the taxes that will be due when you pull out of your 401k? Depending on your other earnings in the year, this can be a big number.
What’s your rate? Why don’t you just refinance your student loan to a lower interest rate now?
I wouldn’t touch 401k till retirement to avoid higher taxes and additional 10% withdrawal fees. Also, as long as your return is higher than the interest rate on your student loan it doesn’t make sense economically.
I believe student loans avg to 6.8%, maybe a little less with automatic payments. Scared to refinance into non-gov’t loans because of losing some benefits. I mostly don’t want them hanging over my head anymore.
Biden might forgive a huge portion of that. I would wait a half year or so and then decide. Then you could refinance to a much lower rate (2-3%) with any remainder. Your 401k will return more than that % -much more.
Take comfort knowing you’re making a sound financial decision instead of making a financially poor choice by paying it off with your 401k
Second this. I would wait to see how Biden’s first 90 days are and to see the pandemic plays out. Department of education may keep the loans in forbearance until a high percentage of the population is vaccinated.
How much do you make a year. Could you take this year and knock them out(maybe stop/slow down investing)
Can you just pay down what you can with the cash out refinance and pay the rest sans the 401K withdrawal?
Depends on the amounts/interest rates. What are your student loans?
Taking equity out of your house for another debt isn't a good idea. I was really referring to the 401k portion, but they both aren't sound ideas.
Bite the bullet, save and payoff the student loans.
Rising Star
Touch not the 401K. Check your student refi rates m, you can do this without hard inquiry. Also just keep chipping at the student loans slowly. That’s the way to do it.