4 Ways to Purify Your 401(k) from Haram Earnings

📚 Books & Weekend Reads Blog
#1

A note to the reader: In my last piece, I shared the importance of a 401(k) retirement account and explored the different ways you can set it up in a halal way. Below, we’re going to focus on some practical ways you can cleanse the gains in your retirement accounts from impermissible investments by way of purification.

This is a companion discussion topic for the original entry at https://blog.zoya.finance/4-ways-to-purify-your-401k-from-haram-earnings/
#2

Practical with some actionable takeaways. Worth your time if you’ve ever wondered about what to do with your employer’s contributions.

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#3

This is a great article. Thank you for the template. Have been avoiding 401ks but will be advocating for an self directed brokerage account to my employer

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#4

So happy you found it beneficial @Ahmer

for others wondering about the template, it’s from this blog post’s sister post. Link to the template below

#5

Thank you for sharing this great article! Knowing that gains fluctuate, is the cash purification on monthy basis or annual?

#6

Glad you found it useful!

Would your gains fluctuate? When I read the blog post, I only read it as actualized gains. As long as the money is still invested in the company, I’ve not made any gains. As for dividends, I think it makes sense to purify those every year. This is not financial advice, just my reading of the blog post.

What do you think?

#7

A post was split to a new topic: Purifying Stocks - What do with fees and taxes

#8

Thank you for the article.
How do I figure out what is the %age of haram earnings, my 401k has, it was invested in Fidelity 500 fund.

Also the breakdown I have for 401k is the contributed amount, the change in value and the dividends so I will just need to purify the change in value and the dividends right?

Thanks

#9

How do I figure out what is the %age of haram earnings, my 401k has, it was invested in Fidelity 500 fund.

The non-compliant percentage can be found in Zoya under the ticker FXAIX.

Also the breakdown I have for 401k is the contributed amount, the change in value and the dividends so I will just need to purify the change in value and the dividends right?

Correct.

#10

I am trying to learn more about stocks so my husband’s investments earn a halal profit. His fidelity account by his company is invested in the Fidelity Target Fund 2055. I have tried to find the ticker symbol for it or even the holdings under it but was not successful. Also, I have only learned what a ticker symbol is this week so please don’t be surprised if my comment sounds a bit noobish. It would be really helpful if someone could help me figure out the non-compliant ratio of this fund. Jzk.

#11

Also, this article is super helpful. Thank you sister and brothers.

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