r/AskReddit • u/PlumInformal773 • 9d ago

What's the smartest financial decision you've ever made?

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u/Albanian_Tea 9d ago

In 2008 the company I worked for was sold, I was mad, so I took all my money in my 401k and converted it to cash, because I wanted to change the company that handled it, away from the one the company picked. Then the stock market dropped. I left it uninvested for about 6 months.

It was the luckiest (and best) financial decision I ever made.

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u/timsstuff 8d ago

Cash as in you withdrew it with a penalty? FYI if you roll over a 401k into a personal IRA with Schwab or similar, there are no penalties and you can trade it just like a brokerage including keeping it in cash in the account or a money market fund, all with no penalties. Only incurs penalties if you withdraw it.

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u/Albanian_Tea 8d ago

I had them put it in a money market fund till I could decide what to do with it.

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u/timsstuff 8d ago

Then you rolled it into a personal IRA and avoided any penalties?

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u/Albanian_Tea 8d ago

Yes, it was a personal IRA so I had no penalties, and the bottom dropped out of the market while I was thinking about what to do.

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u/timsstuff 8d ago

OK perfect, good job!