I have 65,000 and will probably loose half of it to tax and early withdrawl penalties but at this point to many bills and unable to keep up with them
2007-08-16 09:37:26 · 9 answers · asked by Darlene D 2 in Business & Finance ➔ Personal Finance
The easiest way not to lose money from your 401K is -- DO NOT CASH IT! Just deal with the situation you have and forget that you have the 401K. If you have to file for bankruptcy, do that, it is possible that judge will not force you to liquidate your 401K.
But at this time just forget you have it. Stop contributing to it, if things are really bad, but do not withdraw if you have to pay penalties.
2007-08-16 09:48:48 · answer #1 · answered by Alexander K 3 · 0⤊ 0⤋
you are looking at it all wrong == why you need to do is make your self a glass of tea and look around and see what you have that you need and not what want --- if you have that much in your 401k you have to have a good job -- so lets get rid of the cell phone -- internet -- cable tv -- extra car/insurance -- that will be about 600 or 700 dollars that can go for bills --- how about your gym membership -- can you just run out side -- i believe you get my point -- what will happen you will take out the money -- pay the taxes and fees --pay the bills and an year or two be right in the same boat --but this time without a 401 to bail your out so put aside about 5.00 for a pail!!!
2007-08-20 08:22:03 · answer #2 · answered by mister ed 7 · 0⤊ 0⤋
Don't do it. Better idea is to not panic and start working on improving your way of handling money. A couple of good books to help you out:
Debt proof living by Mary Hunt
Total Money Makeover by Dave Ramsey.
Dave Ramsey's course called "Financial Peace" is taught throughout the country. Many times at local churches. You may want to see if you can find a location and go through the program. It will change your life. You can find a class by visting his website: www.daveramsey.com
2007-08-20 04:32:34 · answer #3 · answered by Stealth555 2 · 0⤊ 0⤋
There is no way to avoid taking penalties. You're much better off getting an unsecured (or secured, if possible) loan to cover your bills. Your 401k is likely all you'll have to fall back on when you retire. Don't ruin your future for the present.
2007-08-16 09:45:26 · answer #4 · answered by suavebola 2 · 0⤊ 0⤋
Get educated, find your nearest citinet office, they educate the public in how money works. It is free, no funky gymics, nor some one trying to sell u something, no nonsense.
You can easily make those 65k onto $250K+ in 5 yrs, by choosing wisely your financial vehicles.
It will take you only a few hrs to get good education to make the most sound move, so you won't regret it ltr.
2007-08-16 15:53:39 · answer #5 · answered by maloumg 3 · 0⤊ 0⤋
Depends on how liquid you want to keep it. To loose very little, roll it into an IRA. See your local bank or investment guru for this one. If you take it out and don't re-invest it, you will have to pay taxes on it plus penalty.
2007-08-16 09:46:10 · answer #6 · answered by JohanStulmer 3 · 0⤊ 0⤋
There is no easy way to not lose money. You will pay tax and a penalty no matter how you do it.
2007-08-16 09:40:58 · answer #7 · answered by hirebookkeeper 6 · 0⤊ 0⤋
do not cash it!!!!! I REPEAT........do not cash it!!!!!! What you loose will not be worth it. Call a bill consolidator and create manageable payments to get out of debt. In the end, you will be out of debt..........but then you will have no retirement.......DO NOT DO THIS!!!!
2007-08-16 09:52:04 · answer #8 · answered by chi 3 · 0⤊ 0⤋
Roll the money into an index annunity. You will not lose money. If you need suggestions, please feel free to contact:
charliehappner@aol.com
2007-08-16 11:58:40 · answer #9 · answered by happner 1 · 0⤊ 0⤋