[Mutterly]

I am considering opening own consulting business. Should I consider pulling money from my 401 plan for start up cost? I am 44yr and have about 40,000 in my 401

Thanks in advance!

[Fr_Chuck]

Have you did a business plan, have you looked into the business,

I have always hated to see people spend their entire retirement savings and then lose their entire savings and retirement.

[ScottGem]

I am considering opening own consulting business. Should I consider pulling money from my 401 plan for start up cost? I am 44yr and have about 40,000 in my 401

No, No and NO!

First, there is the tax 10% penalty you will take on the distribution. Then there is the tax liability.

What startup costs would there be for a consulting business? Mostly business cards, a brochure some advertising. If you are not prepared for those costs already, you should be holding off. Raiding part of your nest egg is definitely not the way to go.

[Mutterly]

Have you did a business plan, have you looked into the business,

I have always hated to see people spend thier entire retirement savings and then lose their entire savings and retirement.

Yes I have completed a business plan and have identified first clients. My concern is I will have to discontinue my 8-5 employment due to conflict of interest / company guidelines and I was thinking about my 401 monies in case of the worse scenario to cover living expenses until my business is strong and income is coming in.

[taxsearcher]

I agree with what Scott said. Definitely not. Leave the retirement saving alone. Borrow if necessary.