Taking money out of retirement funds to purchase cards

[G1911]

Originally Posted by Peter_Spaeth

I wouldn't advocate draining retirement accounts by any means, but it isn't an all or nothing proposition.

If you’re to the point where you’re taking money out of retirement accounts, and incurring the heavy taxes and fees for doing that early and improperly, I have a hard time seeing how this person isn’t going all in. Once you’ve gone this far, there isn’t much further to go.

I have no problem if people want to invest some money in coins, stamps, crypto, beanie babies or cardboard. It’s riskier, but there’s also a plausible chance they will outperform my index funds. If you’re taking money out of retirement accounts to do it, this person really should hit pause and reflect on what they are doing.

[steve B]

It's not something I would do.

I also wouldn't take on debt to buy collectibles, although I've been told that I won't be a serious collector until I do. That was regarding a stamp that was "needed" to maybe make an exhibit worthy of a top prize. Of course there's only one, and the last sale was 60K, more debt than I'd ever consider for a collectible.