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Re: Emergency fund almost depleted
Old 02-14-2007, 12:33 AM   #21
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Re: Emergency fund almost depleted

Ok roger....lets agree to disagree. I don't think I ever suggested a 401k loan, but the double taxation issue is better suited for another thread. I am not in a position to know what is best for OP......just putting options on the tabe to be sorted through. I presumed OP would not need advice to "get a bank loan" or "use home equity line" as these seem obvious and may not be available if his employment has ended. It has been stated that rollovers from an employer plan do not require witholding, but I have not verified that statement. I do recall that multiple rollovers are permitted also, so one could possibly initiate a second rollover to pay back the 1st and so on until the urgent need is satified by sale of property or new employment. I agree these may be desperate measures, especially for someone with serious concerns at stake, but I sincerely wish OP will find an easy resolution and have a positive outcome.

This does underscore the value of have a line of credit in reserve in advance of such a situation
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Re: Emergency fund almost depleted
Old 02-14-2007, 07:08 AM   #22
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Re: Emergency fund almost depleted

dwk, one other point.

Assume, for now, that you'll get a mortgage to buy that condo. The builder may assist with loan costs, and you can pay it off later. There is a time when credit is good and necessary ... I would encourage you to not be quite so focused on getting rid of debt to the point you have little flexibility.

Having available, but untapped credit can be a very good thing. And occasionally tapping credit is OK, from my perspective.
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Re: Emergency fund almost depleted
Old 02-14-2007, 09:03 AM   #23
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Re: Emergency fund almost depleted

Quote:
Originally Posted by Martha
What tough breaks! Years ago I used to work on social security appeals and I find it unconscionable that so many people are denied benefits on application and have to appeal to get benefits. Thirty years later the only thing that seems to have changed is that the waiting periods have increased.
I agree. The Social Security website states in layman's terms the person must no be able to work they did and the SSA must think they cannot adjust to other work. I think that is a load of crap. I can't see a CEO of a major company (example only) becoming disabled and and because they can stand up and say hi have their disability claim denied, because they can be a door greeter someplace. I think it should be similar to unemployment, where the person is not required to go below a certain level from their previous employment. To me the layman's definition is how they interpret the law. Reading the law it seems the interpretation is a very strict interpretation.
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Re: Emergency fund almost depleted
Old 02-14-2007, 07:34 PM   #24
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Re: Emergency fund almost depleted

Quote:
I can't see a CEO of a major company (example only) becoming disabled and and because they can stand up and say hi have their disability claim denied, because they can be a door greeter someplace.
Can't say I disagree, but I would like to point out that there are a lot of rickety old people out working as door greeters because they need the money.

I know this wasn't the main point of your comment, but I'd just like to say that IMHO that kind of work is either beneath everybody, or beneath nobody.

Besides, have you seen CEO salaries? Anyone who's helmed a major company for about 15 seconds walks away a billioinaire! ;-D
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Re: Emergency fund almost depleted
Old 02-14-2007, 07:48 PM   #25
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Re: Emergency fund almost depleted

Does the double taxation really matter in this case ?
You would have to call the people that handle your 401k and see what your company rules are. I am sure there are federal rules but many of the rules surrounding loans are decided by the company. I have a loan from my old job that they debit my checking account once a month to pay back. You only get taxed twice on the interest you pay back on the loan. You would of course have to get this done before leaving the company.

If you look at doing a credit card deal make sure you get out yer magnifying glass and study the fine print. They are %R%^% and ^%^%# !!
Rob
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Re: Emergency fund almost depleted
Old 02-14-2007, 08:14 PM   #26
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Re: Emergency fund almost depleted

Quote:
Originally Posted by dwk
So I'm going to lose my retirement health benfits. I do get a severence package for 7 months and can take a lump sum distribution in 3 years.
Is there a way to retire now with a reduced pension that would keep your medical benefits ?

Few years ago, my FIL was likely to get laid off - his wife had serious medical issues - he opted to start drawing a reduced pension to keep medical beneifts retained - especially because his insurability was shaky with his wife's condition.

Best of luck to you.
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Re: Emergency fund almost depleted
Old 02-14-2007, 10:56 PM   #27
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Re: Emergency fund almost depleted

You might want to do a search for "401k loans". There is an excellent discusssion from last June on this topic. Conclusion: it is almost always a real loser because of double taxation. A 401k loan should be the last choice.
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