Roll Over Beethoven
by Amanda
Blue Jeans Millionaire welcomes Amanda, Richard’s younger daughter, as our newest contributor.
Ok, if the oldies reference isn’t an indication that I am my father’s daughter, I don’t know what is…
First, a brief overview: after graduating college in 2004, I have had three different jobs in three different states. All voluntary moves, fortunately. I figure I should try different things and experience different cultures while I am young and (relatively) unattached. (I do have a boyfriend and two cats).
After leaving each job, I was presented with the option to either A) cash out my 401(k) with penalties (ooh, tempting!), or B) roll the money over to my Schwab rollover account (the sensible choice).
Now - we live in a society of instant gratification: fast food, weight-loss pills, online shopping, speed-dating … anything that will take the wait or work out of something – we are all for it. Have you ever noticed that lottery winners almost always take the lump sum up front, even if it means less money in the long run? They also squander it on unbelievably useless junk like life-sized statues of the Blues Brothers (true story), but that is another topic altogether…
Option A or B?
I’m not putting myself on a high horse or anything. I grew up in a house full of stylish ladies, and I am not afraid to admit that I am a shameless consumer of all things material. And if not shiny baubles, boy, I sure could use a vacation. Somewhere beachy, tropical, umbrella drink in hand, sea salt in my hair… Hmm, Option A is starting to look good.
But there is Option B, hands on hips, shaking its head disapprovingly at me. Option B is the comfortable, slightly frumpy shoe, when you know those stilettos look good but are gonna kill later on.
When I first heard my options, I was like a cartoon with money signs popping out of my eyes. But when I thought about it, is it really worth it knowing that I’d have to pay the tax and penalty? I wasn’t suffering or experiencing any kind of emergency. Plus, I can afford all the things I want with a little bit of budgeting.
I decided to go with my head and not my gut, and to my surprise, the process was totally painless. A couple minutes filling out a short form, and before I knew it, the transfer was complete.
Since then, I haven’t missed the money at all. Out-of-sight, out-of-mind.
Plus, it’s reassuring to know that I have a nice chunk safely tucked away. Sometimes it feels good to do the right thing! Now if only I could apply that logic to my occasional fast food cravings…
