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Money Guy Show

"I Took Out a 401(k) Loan - What Should I Do?"

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Investing, Education, Business

4.73.1K Ratings

🗓️ 22 May 2023

⏱️ 21 minutes

🧾️ Download transcript

Summary

How can you course-correct after taking out a 401(k) loan for a down payment? We'll walk you through that question and more in today's Q&A episode! Jump start your journey with our FREE financial resources Reach your goals faster with our products Take the relationship to the next level: become a client Subscribe on YouTube for early access and go beyond the podcast Connect with us on social media for more content Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Next up is a question from Jesse.

0:10.3

It says, I'm tired of my job and I'm planning to not only quit but leave my industry for

0:16.0

something else.

0:17.5

The downside is, I'll probably take a pretty big pay cut.

0:21.9

Any advice on navigating this?

0:26.0

My mom always used to say, failing to plan is planning to fail.

0:33.9

I think if you're going to go into this Jesse one, kudos to you for recognizing you're

0:38.5

in a job you don't like and maybe in a career field you don't want to be in.

0:41.6

You said, I don't like this, I want to change, I'd like to potentially be doing something

0:45.8

different.

0:46.8

That's great that you've recognized that.

0:48.1

Now comes the hard work.

0:49.4

You actually have to put the plan in place to figure out what makes that possible.

0:53.1

I don't know your situation.

0:54.9

You're married, do you have children, do you have debt obligations, what you're rent,

0:58.6

what you're mortgage, all these things that factor into it.

1:01.6

You got to figure out if I'm making X dollars and I'm going to be making 70% of X dollars

1:06.8

at this new job, how do I bridge the gap?

1:09.9

We here at our firm have heard a number of career changers.

1:12.8

We have former musicians, we have former doctors, we have former accountants, former engineers.

1:21.7

What are the things that we tell them is, hey, you were very storied in success in the

1:25.2

career that you were in, but here you might have to take a step back because you have to

...

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