Hacking Your 401K

his blog does not advocate usual advice which is to “max out and wait” because this likely limits your mobility, your assets are tied up in taxable income | May 13, 2013 by Wall Street Playboys

A few questions have come in more tailored to personal finance and one item that keeps coming up is 401K distributions and contributions. This blog does not advocate usual advice which is to “max out and wait” because this likely limits your mobility, your assets are tied up in taxable income and of course if you’re still worried about income at 60 you’ve chosen the wrong career. Here is a good guide for someone who is going to join the work force and wants to maximize his liquidity.

Year 1: The thing about jobs after college is this… You’re only working half of the year. This means you have minimal taxes because bonuses are generally not paid until January and even if they are paid in December you’re not getting a full year, it’s just a stub payment. So if you’re starting in June/July here’s a non-conventional move… Max out your 401K in the half year.