Financial Overview - The individual has a total of $800,000 in two 401(k) plans and a $69,000 lump-sum pension, alongside $150,000 in Roth IRAs for both spouses, and $400,000 in real estate equity with a low mortgage of less than $50,000 [1][2] - The individual also holds approximately $1 million in cryptocurrency, which has appreciated by 88% over the past year [1][4] Retirement Planning - The individual plans to utilize "rule of 55" withdrawals to pay off the mortgage and sell small amounts of crypto to sustain until age 59 1/2 [3][4] - Social Security is not expected to be a reliable source of income, with the belief that it will be insolvent in 15 years, and the individual plans to delay claiming benefits until age 70 [3][4] Tax Considerations - The individual has not filed taxes in 20 years, despite having taxes withheld and no undeclared income, which raises concerns about future tax obligations [4][5] - Professional assistance from a CPA and tax attorney is recommended to address the tax filing issue and ensure compliance with the IRS [6]

Group 1 - Justin has been unemployed for a year but is now focused on catching up on retirement savings after returning to work [1] - His new employer offers a 401(k) match of 75% on contributions, up to 8% of his salary, prompting him to consider contributing half of each paycheck to his 401(k) [2][4] - A 401(k) is an employer-sponsored retirement savings account that allows employees to contribute a percentage of their paycheck before taxes, reducing taxable income [3] Group 2 - Contributions to a 401(k) are typically invested in mutual funds or ETFs, and many employers offer matching contributions based on employee contributions [4] - In 2025, the employee contribution limit for a 401(k) is set at $23,500, with a combined limit of $70,000 for employee and employer contributions [5] - Individuals aged 50 and over can make catch-up contributions, with specific limits based on age [6]

If you really think about what we encourage and incentivize through our various promos and matches, it's retirement. So, the journey of a customer through the Robin Hood platform is they usually come in because they're interested in buying a particular stock, you know, one of the innovation stocks, whether it be a Tesla, Nvidia, Amazon, or or many others that are at the frontier of innovation and technology. So, they come in to buy a stock, sometimes a crypto, they become a gold member, and then they start ...

Core Insights - The article discusses the financial implications of withdrawing funds from retirement accounts during a divorce, highlighting the potential penalties and long-term consequences of such actions. Group 1: Financial Consequences of Withdrawal - Withdrawing funds directly from retirement accounts incurs a 10% penalty plus possible income tax, which could push individuals into a higher tax bracket [1][2] - Removing $70,000 now could result in a loss of over $379,000 in future growth by age 65, assuming a 7% annual growth rate [2] - If funds are transferred to an ex-spouse's retirement account, it can be done tax and penalty-free, reducing the financial burden of early withdrawal [3][7] Group 2: Alternatives to Withdrawal - Immediate access to cash from retirement accounts avoids the need for loans or interest payments, but it may not be the best long-term strategy [4] - Other options include negotiating a payment plan with the ex-spouse, making concessions in the divorce settlement, or borrowing against a life insurance policy [9][10][13] - A combination of withdrawing part of the retirement funds and taking a small personal loan can limit both the retirement impact and debt burden [14] Group 3: Considerations for Decision-Making - Financial advisors generally recommend that withdrawing from retirement accounts should be a last resort, as it can create significant setbacks for future financial security [5] - The decision on whether to withdraw from a retirement account or take on new debt depends on various factors, including the willingness of the ex-spouse to cooperate and the individual's financial situation [15][16]

Investment Opportunity - Opening 401ks to private assets aims to provide retirement savers with potentially higher returns and more investment options [2] - BlackRock estimates that adding private market assets could increase returns by approximately 50 basis points (0.5%) annually [2] - This could lead to a potential increase of 15% in 401k plan value over a 40-year period [2] Potential Risks and Concerns - Private equity's inclusion in retirement accounts may lead to increased costs for investors [3] - Private assets are generally less liquid compared to publicly traded stocks and bonds [3] - This illiquidity could make it more difficult for individuals to access their savings quickly before retirement [3] - Assessing and valuing private assets can be more challenging due to limited publicly available information [4] - Greater risk is involved due to the difficulty in assessing and valuing private assets [4]

Regulatory Change - Executive Order expected to allow Bitcoin and crypto investments in 401(k) retirement savings [1] Market Impact - Americans hold $87 trillion in 401(k) retirement accounts, representing a significant potential influx of capital into Bitcoin and crypto markets [1]

🇺🇸 Why Trump’s Executive order that allows Bitcoin and other cryptocurrencies in 401(k)s is ULTRA bullish ?1) There are $9 trillion retirement savings which can now hold crypto investments like Bitcoin ETFs.That 1 point is more than enough, it’s fucking $9 trillion man !! ...

Policy Change - Trump executive order allows Americans to invest 401K retirement savings into Bitcoin and crypto [1] Market Size - Americans hold $9 trillion in 401K savings [1]