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27 y/- debt vs. withdrawing from savings

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4frnt
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27 y/- debt vs. withdrawing from savings  Reply with quote  

I am 27 and have about ~$140K in retirement savings ($80K in a traditional IRA rolled over from a previous 401k and $60K in a Roth IRA). I also have an additional $10K in "liquid" savings in a brokerage account. I have never had any debt. I built up my savings after several years at a well paying job but have moved to the startup world and live in manhattan so I've been slowly eating through my checking / brokerage account.

Now to my question: If I go eat through the rest of my "liquid" savings of $10K, what would be the best approach to get cash? I really hate the idea of taking from my 401k or Roth IRA but I also hate debt. What are my options? What should I do if this were to happen?

Thanks
Post Mon Aug 15, 2016 8:35 pm
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oldguy
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quote:
have moved to the startup world and live in manhattan


What is "startup"? business? investing? entrepreneur? real estate?

Do you have a W2 job?
Post Mon Aug 15, 2016 8:51 pm
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4frnt
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Cash: $ 0.45

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quote:
Originally posted by oldguy
quote:
have moved to the startup world and live in manhattan


What is "startup"? business? investing? entrepreneur? real estate?

Do you have a W2 job?



I work for an early stage venture capital funded business in the travel industry. I was hired as the first employee (apart from the two co-founders) and negotiated a compensation package that provided me greater equity in exchange for lower salary ($55K).
Post Mon Aug 15, 2016 9:01 pm
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oldguy
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Is the $55k W2 money?
In addition to your $55k, what's your spending burn rate? Ie, how long will the $10k last? I would learn that first - and if it's a very short time, I would re-negotiate the $55k, you don't want to burn-thru your $140k (and pay the $40k Fed/NY state/City Taxes, the $11,000 SS/Med Tax, plus the 'early withdrawal' penalty of $14,000. ) There won't be much left if you allow that to happen.
Post Mon Aug 15, 2016 10:16 pm
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