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Pension loans
Old 04-28-2013, 06:45 AM   #1
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Pension loans

I did not know these types of loans existed. Not sure if anyone has tried these loans or is planning to get cash against their pensions ?

Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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Old 04-28-2013, 06:56 AM   #2
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The article really highlights the absurdity of doing this:
Mr. Govan said the offer of quick, seemingly easy cash sounded too good to refuse. He said he agreed to sign over $353 a month of his $1,033 monthly disability pension for five years in exchange for $10,000 in cash up front. Those terms, including fees and finance charges, work out to an effective annual interest rate of more than 36 percent. After Mr. Govan belatedly did the math, he was shocked.

All that glitters is not gold. -G. Chaucer, W. Shakespeare
All that is gold does not glitter. -J.R.R. Tolkien
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Old 04-28-2013, 06:59 AM   #3
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Originally Posted by Brett_Cameron View Post
The article really highlights the absurdity of doing this:
It also highlights the financial illiteracy many face in this country.
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Old 04-28-2013, 07:04 AM   #4
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Old 04-28-2013, 07:06 AM   #5
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Originally Posted by MichaelB View Post
It also highlights the financial illiteracy many face in this country.
Yes, multiplying $353/month * 12 months a year * 5 years to get $21,180 and compare it to the $10,000 up front you receive is a difficult exercise.
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Old 04-28-2013, 07:13 AM   #6
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As soon as I read the first few sentences my mind walked through all of the bad stories and sympathy that will happen. One of the great things about public service is that at some point the gov will take care of you. Now some enterprising folks have found a way to legally separate you from that promise. The "victims" will blame everyone for failing to protect them. The press will ask the pols why they didn't protect them and your favorite will say that she/he has introduced legislation to fix it but the other party is blocking them. Plus ca change, plus c'est la meme chose.

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