This Calculator Shows How Much You Will Lose When You Cash Out an Old 401 (K)
If you have an old 401 (k) from a company you no longer work for, you might be tempted to cash it out rather than move it elsewhere . This tool will show you how much it will cost you in the long run.
It is common knowledge that 401 (k) cashing out is the worst possible option. However, sometimes you have a job for a year without a significant investment in employer contributions and very little money in your account. It’s easy to think that a couple thousand dollars won’t affect your retirement spending.
This calculator shows you two things: how much your initial investment might be worth at the time of retirement (you can adjust your expected rate of return if you want a more conservative or generous estimate), and how much you ” really get if you cash out after taxes and fines. While the results won’t surprise anyone – investing provides more than cashing out early! Shocking! – it will help you demonstrate to yourself or others how significant the difference is.
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