This calculator demonstrates the future retirement financial loss you may experience when electing to repay your debt with an extended repayment program offered by creditors, credit counseling, or debt settlement rather than intervene on your debt with solutions like bankruptcy, which terminate the debt quickly and allow you to resume saving again for retirement. How …
“Dear Steve, My husband lost his job about 4 years ago. We were in debt then and had started to make extra payments to try to get out of debt. With the loss of his income, I went back to just making minimum payments on everything. I took money out of my 401k just to …
“Dear Steve, I am a 62 year old single woman. I retired in June with a fixed PERS retirement pension and am also collecting my social security pension for a total of annual income of about $64,000. I have about $20,000 left in credit card debt that I have been paying down on a fixed …
“Dear Steve, Consolidating debt to avoid high interest rates or deplete 401K. Have taken on about $50K in credit card debt and have secured mostly 0% interest rate cards that are coming due over the next several months. I have depleted my brokerage savings but still have an IRA and 401K that I could tap …
“Dear Steve, 48 year old female, married, 1 child 14 years olds in 9th grade – college bound. 11 years at job with vested pension, Roth and traditional IRA’s, home owner – 174,000.00 at 6% (fixed VA) monthly payment with taxes and insurance – 1507.00, 800 credit scores, 2 cars financed at 2.5% totaling – …
“Dear Steve, My wife and I paid off our debts and we don’t want to go there again. I recently found a better job but it is going to involve significant upfront expenses in terms of move etc which is not paid for by the company. I have a 403b from my current employer with …
I’m not sure how many times I can say it, don’t drain your retirement assets to pay debt. It’s a bad idea on so many levels. In a couple of posts I even talk about the long term consequences of tapping those funds. See Here’s Why a 401(k) Loan to Pay Off Debt Can Cost …
“Dear Steve, 20 years same company making 200 or more each year in a sales role. Got fired unexpectedly. Been riding large debt load for years, but managing it I guess because of big income. My monthly nut is about 4k. + another 3k to float my excessive bad debt: Two cc: 32k 0% 12 …
“Dear Steve, 85 Year old WWII vet, ill health, In the late 80’s and early 90’s ran up $125,000 on several credit cards due to medical expenses and travel to other states to care for both our parents. We have spent all our IRA and about 85% of 401k on these bank cards. After retirement, …
Borrowing from a 401k is a major decision. It is important you make certain considerations before borrowing from your 401k, so that your loan doesn’t negatively impact your retirement. The key aspect to borrowing from a 401k vs withdrawing from one, is you won’t have to pay taxes or penalties unless you default on your …