12,000 dollar investment?

Question

I currently have $12'000 vested balance in a company profit sharing account. I don't make a ton of money (30'000 a year) but is this enough money to put into some kind of investment that has the potential to grow into a decent nest egg over a long time. I'm thirty and really want to start planning for the future but like I said I don't earn alot so it's tough to save money off my earnings. Any help would be great. Thanks.

Answer 1

I hope you dont mean that you are going to withdraw it from your company account to invest! Because you will need a great investment to gain back the near 50% loss you will realize from cashing out of a retirement plan! You will pay regular income tax + 10% penalty for early withdrawal + 20% mandatory withholding.

If you are not happy with the investment options that you have at work, then see if you are allowed to roll it over to another qualified plan like a traditional IRA. Other than that, you may have to just keep what you have.

Answer 2

You may be limited as to what you can do with the money. It will have to maintained in some type of IRS approved retirement account so you don't have to pay both income tax on the entire amount, plus a 10% penalty for early withdrawal from the profit sharing plan.

Answer 3

Many Americans aren't aware of the best savings tactics... but it is recommended for you to save (regardless of your income) 10% of your paycheck and deposit it into your savings account. Whether this is $100 or $1,000 per month, it will grow and if you invest in diversified mutual funds, you will have a large amount of money within 20 to 30 years!

Answer 4

You probably can't take the money out until you leave your job.

Answer 5

Contact me and we can make business with all that cash: [e-mail]