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Re: need some financial advice
What??? You mean DH has not time to take an extra job????
You mean they don't pay him enough in the job he is at?
I'm shocked....
To you and my office hubby.
I'm in the same boat too. 
Message edited 9/21/2007 3:32:38 PM.
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Posted 9/21/07 1:52 PM  |
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nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
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Re: need some financial advice
I wouldn't take the loan. I would cut out every expense possible (cut cable, cells, etc).
If you take a loan out, it's a temporary solution. Your expenses are what needs to change.
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| Posted 9/21/07 2:20 PM |
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pmpkn087
Life is good...
Member since 9/05 18504 total posts
Name:
Stephanie
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Re: need some financial advice
If you take the loan or the money out of the 401K or IRA, are you sure you won't be in this spot again? I wouldn't take the retirement money. However, only you know what's best for your family.
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| Posted 9/21/07 2:30 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: need some financial advice
Honestly I would take out a loan from my 401K and pay off my debt. It is a loan..you are paying it back and you can still contribute to your 401K. I don't see the big deal with taking out a 401K loan especially if you are no where near close to retiring especially since you are going to pay it back. However I wouldn't withdraw money because of the tax penalties and also the fact that you can't replenish it.
You have 0% interest on your CC's for another few months and I'm assuming you can't pay them off within that time frame without the loan so why put yourself in a position where you are going to suffer more. I would just make sure to cut up the cards or sockdrawer them so you don't end up in the same position. Good Luck!
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| Posted 9/21/07 2:45 PM |
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Re: need some financial advice
Posted by Ang-Rich
Posted by Bxgell2
What about taking a loan on your 401ks/IRAs?
I agree with everyone said above...I would suggest NOT withdrawing the monies from your retirement accounts. In addition to considering taking a loan against it, have you:
Cancelled Cable
Cancelled Cell Phones
Unfortunately, her DH and I can NOT cut our cells because we use them for work. You would think our jobs would pay for it, but they don't.
But we can NOT function without our cells because of the travelling we do all day for our job, besides the fact its the only way daycare can get a hold of us....
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| Posted 9/21/07 3:30 PM |
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ddunne2
LIF Adult
Member since 7/05 4189 total posts
Name:
Doreen
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Re: need some financial advice
Here is what I would do in order to try to get into a better place financially:
1. Cut whatever you can cut. Even if it is a $20 thing, cut it. The littlies things add up.
2. Shop only with cash. Leave the credit cards at home and only use in case of emergency.
3. If that still doens't get you ahead, I would take a small loan against your 401K...just enought to get you to a place where you have a controlled amount every month that will help you make a dent in your debt. Do not withdraw from those accounts.
I personally would take a consolidation loan out before touching 401K. At this stage, you are young enough to use a variety of options to help you.
Yes, some may argue that retirement is not important now, but it is. You can always take out a loan for college tuitions, house renovations, debt consolidation, etc...but there are no loans to fund your retirement. So just be smart about that and resist the urge to touch that money. You will be glad you did when you are able to retire and sip a pina colada from your beach house! 
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| Posted 9/21/07 4:10 PM |
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Eleanor
LIF Adult
Member since 2/06 2223 total posts
Name:
Ellie
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Re: need some financial advice
I really wouldn't use your retirement. There are too many negatives: penalties, paying taxes twice, having a clean slate and temptation to use CC again.
I would seriously put all your bills in front of you. Pay only minimums except for the highest interest or the smallest balance. little by little.
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| Posted 9/21/07 7:26 PM |
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groovypeg
:)
Member since 5/05 2423 total posts
Name:
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Re: need some financial advice UPDATED
update in first post
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| Posted 9/21/07 9:41 PM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: need some financial advice UPDATED
Posted by Tah-wee-ZAH
Posted by Bxgell2
Absolutely not. It's a 10% penalty and then ordinary income tax on top of that. You will end up losing 40-50% in tax obligations. If you are looking to pay off credit card debt, try taking the card with the highest interest and pay that as aggressively as possible while making just the minimum payments on the other cards. When that card is paid off, go to the next highest interest card and pay that aggressively.
Also, start keeping a journal, both you and your husband, and write down EVERY PENNY you spend. That will help you find out places where you can continue to cut and save.
Again, the penalty for withdrawing money from your retirement accounts is much higher then any interest on a credit card and not a good financial decision.
FM me if you need any other help.
Agreed - it's wasting money because you'll get SLAMMED with taxes when you take it out, and then SLAMMED again come tax time. You'll lose almost 40% of the investment.
If you can take a loan on your IRA/401k, that's the best way to do it - you will get charged interest, but it goes right back into your account, and usually you can pay it back VERYYYYY slowly .
Otherwise, I'd open a 0% interest card and transfer all your balances. Dh and I did this when we were paying for renovations on our house, and paying off our cars. It took us just about 2 years to pay it off, but we did it without paying any interest.
I agree with both.
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I agree as well. DH & I got out of $40K worth of debt on our own within about two years without a HELOC (we did not own a home at the time) and without pulling the $$ out of our retirement.
It was by far the HARDEST thing we EVER did. Literally we did not got out to eat...EVER. We asked for GC to restaurants and clothing stores for Christmas, birthdays, etc. so we could go am splurge. We negotiated with our creditors over the phone and by mail. This process took a lot of time, but it was worth it. We basically paid the highest interest, lowest balance debt off first, then applied that payment to the next highest interest debt, and so on. We were paying out $800 a month towards debt for two years. We had to become more responsible and we did without...a lot. While friends were buying new cars, homes, furniture, clothes, shoes, etc. We lived as if we were poor. We ate steak once every three months, I took leftovers to work, we did not go to movies, we would have picnic dates, we would play cards, basically anything low budget. It sucked while we were doing it, but it was the best feeling in the world when that debt was off our back. Knowing we did it on our own, that we did not have another huge loan to pay off.
Then, we started saving. We purchased our home, had our child,put $$ towards her college while I was preggo, put $$ into retirement funds for both of us. There is no better feeling. You can do it.
Expect it will take you just as long to get out of debt as it took for you to get into debt. Know that if we did it (and we were young & stupid with our $$) you and your DH can do it too. It is just like loosing weight, it takes discipline and the willingness to cut back and stick to it.
Joanna - you went through labor & delivery, after that getting out of debt is a cakewalk.
Feel free to FM me if you want to.
Message edited 9/21/2007 10:02:35 PM.
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| Posted 9/21/07 9:54 PM |
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monkeybride
My Everything
Member since 5/05 20541 total posts
Name:
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Re: need some financial advice UPDATED
Posted by dm24angel
I just think too much emphasis is placed on retirement.
As an only child who has to worry about her mother who has no retirement I couldn't disagree with this more.
Retirement is something you have to save for. You can't take a loan to retire. Who knows what Social Security and the cost of living will even be like 30 or 40 years from now.
To the OP, Good luck with the financial advisor. I hope you can come to a solution that eases some of the worry you have.
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| Posted 9/22/07 12:04 AM |
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dm24angel
Happiness
Member since 5/05 34581 total posts
Name:
Donna
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Re: need some financial advice UPDATED
Posted by monkeybride
Posted by dm24angel
I just think too much emphasis is placed on retirement.
As an only child who has to worry about her mother who has no retirement I couldn't disagree with this more.
Retirement is something you have to save for. You can't take a loan to retire. Who knows what Social Security and the cost of living will even be like 30 or 40 years from now.
To the OP, Good luck with the financial advisor. I hope you can come to a solution that eases some of the worry you have.
Im in the SAME boat...Im an only child , and my mom has me and only me and she has next to nothing in retirement, and I 100% Am aware as is my husband that she will need to lean on us heavily once she retires...We are prepared for that and we have never seen it as a burden.
She has helped us financially ( wedding and IVF) and we understand that we will repay her when the time comes.
To me, thats what family does.
I dont plan to do that to my son, but I hope if it came down to it , he would feel the same way I do.
We have already discussed getting a house with room for her , because she will obviously be there with us.
Just because its a burden to you , doesnt mean everyone feels the same way.
I posted just how I felt.
I understand you respectfully disagree.
There are two sides to every story and opinion.
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| Posted 9/22/07 12:10 AM |
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Re: need some financial advice UPDATED
Posted by monkeybride
Posted by dm24angel
I just think too much emphasis is placed on retirement.
As an only child who has to worry about her mother who has no retirement I couldn't disagree with this more.
Retirement is something you have to save for. You can't take a loan to retire. Who knows what Social Security and the cost of living will even be like 30 or 40 years from now.
To the OP, Good luck with the financial advisor. I hope you can come to a solution that eases some of the worry you have.
I think about retirement everyday.... at least now I can work everyday - what am I going to do when I'm old? Especially in the field I'm in - not a lot of elderly...
My gma lives VERY very comfortably at 83. I want to know I can live like her someday....
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| Posted 9/22/07 7:10 AM |
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