Rukh O'Rorke
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Post by Rukh O'Rorke on Oct 2, 2023 11:15:25 GMT -5
I'm back! Student loan interest started accruing again on 9/1 My autopayment is still active and they will just autodeduct my payments 10/5 - feel sorry for anyone who's loans changed companies and doesn't think the autopayment is transferred too.....that will be a nasty surprise if they are going to boycott the loan repayment as I have heard some chittering about from the youth. My balance is 101,355.87 across 7 separate loans, interest rates between 5.59% and 6.96% . I got a car loan last year and just looked at that to determine where to focus and the car loan is 5.34% so less than all my various loans..... Minimum payment total for the student loans is an eye-watering 1,269.74 monthly. Mentally I was thinking that it would be about 1k as when the pause initially went through I paid off a private loan and 2 old loans from my masters that had been consolidated and did not qualify for the pause....but I guess those were all small potatoes and did not affect my minimum payment by as much as I was wishtimating. It is going to be hard to take right at the moment because I've been juggling credit card balances due to a vacation, vet bills, and some medical costs. So far I've avoided any credit card interest and have been waiting on some RI projects to come in for some extra cash together with sept being a 3 paycheck month I thought I'd be out of those woods soon, but now the student loans rear their ugly little heads..... There was a beautiful period of time there where I was maxing all the 401k, etc. living not large, but maybe a bit medium, and the money was piling up a bit and I was doing the ibonds and then doing some extra to treasuries and taxable account. Not huge amounts, but something every month....It is hard to go back to hardcore belt tightening - which I've been on since returning from vacation in July...Now it is going to be even tighter and looks like I am going to end up paying a bit in credit card interest before the year is out.....Need to marshall up some reimbursement stuff on medical and waiting on data for an RI project. A promotion was recently dangled a bit in my face - but that is not for sure and now on hold till next year anyway. Welp - the pause was fun while it lasted! Have you plotted not just the interest rates on the SLs and car but also the principal balance and number of payments left? When I was racing my debt here, I noted that my car payment (1.99% (oh, the good old days!), principal balance was about $12K at the time) was the lowest interest rate BY FAR on any single debt, but if paid off would free up about $500 per month to put toward another debt. I started to put any extra money toward the car. And it was a Rule of 78s loan where interest was front-loaded so I wasn't even really saving 1.99% by paying it off early. But I did free up $500 per month by doing it that way. You do what works for you, of course, but your best bet might not be going by interest rate only. Thanks, this is something to consider! I will take a look when - if ever! - I have extra to put towards payments. For a couple of months at least, I am just going to be skating by with minimum payments to all.....
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lark1964
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Post by lark1964 on Oct 2, 2023 12:59:32 GMT -5
Shoutouts! lark1964 - Nice progress! Can you use a tagline when you post updates? Makes things a little easier for me. Link to SmileysTagline...?
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nidena
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Post by nidena on Oct 2, 2023 18:03:32 GMT -5
Shoutouts! lark1964 - Nice progress! Can you use a tagline when you post updates? Makes things a little easier for me. Link to SmileysTagline...? Like this: nidena: 8/22/2023 $58,258.53 (8/22/2007 $223,361.20 N453,503,NE648,NPT25) The N### will be the page of your first post but without the N.
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lark1964
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Post by lark1964 on Oct 3, 2023 8:00:35 GMT -5
Like this: nidena: 8/22/2023 $58,258.53 (8/22/2007 $223,361.20 N453,503,NE648,NPT25) The N### will be the page of your first post but without the N. I have no idea what these mean: nidena: 8/22/2023 $58,258.53 (8/22/2007 $223,361.20 N453, 503, NE648, NPT25)
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Minnesotagirl7
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Post by Minnesotagirl7 on Oct 3, 2023 9:23:00 GMT -5
lark1964 - Here is what your tagline is from your last update: lark1964 [2]: 9/18/2023 $75,258.74 (4/13/2023 $80,738.38 C290) First is your name, then date of your last update, then last update total. In parentheses is your race start date, starting race total, starting page. Each time you update, you update the date and $$ total outside of the parentheses. Hope this helps! Thanks.
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chiver78
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Post by chiver78 on Oct 3, 2023 9:50:36 GMT -5
turtling along while I wait on the work situation to settle out. but hey, progress is progress. oh, and I got alerts from various bank accounts that my FICO score updated this week - it is now a chill 781. chiver78 10/3/23 $9,119.44 (5/9/20 $138,495.31)
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lark1964
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Post by lark1964 on Oct 3, 2023 13:22:12 GMT -5
OK, let's assess:
I am changing the game (for myself, yay, me!). It's not without complexities, but overall it will make some massive differences.
The money I am going to access is from my pension. As I mentioned before, when you get to my age (59 1/2), you have options you may not have thought of before, certainly when my boyfriend - who sells insurance - told me about this, it was not something I'd even known about, much less considered. And he laughed, he says it's not something anyone is told about, they don't tell you your options in HR and 401K money management groups. And most insurance companies don't tell you a lot because one of the things that I'm going to be changing this year is to drop my balance on my term life - I'll be 60, and when you turn 60, your premium value gets cut in half, and every year after that it goes down. So where I'm currently paying $109 / mo into my term life to get 3x my salary in cash for my beneficiaries, as of April 3, 2024, that payout will be cut in half - but I'd still be paying $109 (or whatever, probably $115 next year). I'm dropping the extended insurance payout.
My family will still receive one year's salary from my job if I die sooner than later. But one of the things would be my bills would also go to my beneficiaries, so I'll be fixing that with paying things off. (All your debts go to your family and friends, keep this in mind!)
What I'm receiving is $10K direct from my pension (actually $12,500*80%), and I'll pay off the $4,500 balance of a pension loan I took about 52 months ago (not quite five years) of $32,000. This loan carries interest of 4.25%, fixed. This has been locking my pension value, it was useful when I did it, but now I need to clean things up. So after that $4,500, I'll also pay off some small fry, Wayfair, Care Credit, Citibank, BofA, Mattress Firm. And it won't have a huge impact on the balance of my pension.
I'll also get new glasses and I have to buy a set of tires. (Life happens).
THEN - I'll be able to borrow against my pension again - a considerably higher number than $32K, I am crossing my fingers for $55-60K. I'll get this as another low interest pension loan (considering prime these days? Probably not less than 8%), and then I'll pay off the high interest things - Lowe's, Target, Home Depot, I'll be able to make a dent in Discover, and what I have left I'll put into savings as well as do a few things in my house, like solar panels, my heat exhaust fan, and finish the last few things with the renovation that I had to halt when I ran out of money.
This will give me a new pension loan bill of probably about $1250-1400 a month, but overall will kill about $1800 month in bills. Plus the new loan's interest will be *considerably* less than the exorbitant interest rates we're all buried with these days. The nice thing about taking out the pension loan, also, is that it does not affect my credit, so that will soar, yay, me!
Did I mention that before all of this began, I was out of debt for except my mortgage and car payment? My score was 742. It's 634 right now. *sigh*
So - tomorrow, the first deposit of $10K should process, according to TIAA, it might take a day or two to show up, but it will be there, if not tomorrow, by Friday. And the games begin! Yay!
I'll post updates probably about the 15th.
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TheOtherMe
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Post by TheOtherMe on Oct 3, 2023 14:59:16 GMT -5
OK, let's assess: My family will still receive one year's salary from my job if I die sooner than later. But one of the things would be my bills would also go to my beneficiaries, so I'll be fixing that with paying things off. (All your debts go to your family and friends, keep this in mind!) Your debts go to your Estate. They do not go to your family and friends. If the Estate runs out of money, creditors will send bills to your family and try to get the money but they owe nothing from their own pocket. The debts could go to your family and friends if they co-signed for something. That is the only way your debt could get to your friends.
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seriousthistime
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Post by seriousthistime on Oct 3, 2023 15:22:55 GMT -5
OK, let's assess: I am changing the game (for myself, yay, me!). It's not without complexities, but overall it will make some massive differences. The money I am going to access is from my pension. As I mentioned before, when you get to my age (59 1/2), you have options you may not have thought of before, certainly when my boyfriend - who sells insurance - told me about this, it was not something I'd even known about, much less considered. And he laughed, he says it's not something anyone is told about, they don't tell you your options in HR and 401K money management groups. And most insurance companies don't tell you a lot because one of the things that I'm going to be changing this year is to drop my balance on my term life - I'll be 60, and when you turn 60, your premium value gets cut in half, and every year after that it goes down. So where I'm currently paying $109 / mo into my term life to get 3x my salary in cash for my beneficiaries, as of April 3, 2024, that payout will be cut in half - but I'd still be paying $109 (or whatever, probably $115 next year). I'm dropping the extended insurance payout. My family will still receive one year's salary from my job if I die sooner than later. But one of the things would be my bills would also go to my beneficiaries, so I'll be fixing that with paying things off. (All your debts go to your family and friends, keep this in mind!)What I'm receiving is $10K direct from my pension (actually $12,500*80%), and I'll pay off the $4,500 balance of a pension loan I took about 52 months ago (not quite five years) of $32,000. This loan carries interest of 4.25%, fixed. This has been locking my pension value, it was useful when I did it, but now I need to clean things up. So after that $4,500, I'll also pay off some small fry, Wayfair, Care Credit, Citibank, BofA, Mattress Firm. And it won't have a huge impact on the balance of my pension. I'll also get new glasses and I have to buy a set of tires. (Life happens). THEN - I'll be able to borrow against my pension again - a considerably higher number than $32K, I am crossing my fingers for $55-60K. I'll get this as another low interest pension loan (considering prime these days? Probably not less than 8%), and then I'll pay off the high interest things - Lowe's, Target, Home Depot, I'll be able to make a dent in Discover, and what I have left I'll put into savings as well as do a few things in my house, like solar panels, my heat exhaust fan, and finish the last few things with the renovation that I had to halt when I ran out of money. This will give me a new pension loan bill of probably about $1250-1400 a month, but overall will kill about $1800 month in bills. Plus the new loan's interest will be *considerably* less than the exorbitant interest rates we're all buried with these days. The nice thing about taking out the pension loan, also, is that it does not affect my credit, so that will soar, yay, me! Did I mention that before all of this began, I was out of debt for except my mortgage and car payment? My score was 742. It's 634 right now. *sigh* So - tomorrow, the first deposit of $10K should process, according to TIAA, it might take a day or two to show up, but it will be there, if not tomorrow, by Friday. And the games begin! Yay! I'll post updates probably about the 15th. I think it depends. Do you have any assets that would become an asset to the estate before they're distributed to the heirs? Or do all your assets have beneficiary designations (401k, IRAs, investment and bank accounts)? Do you have a transfer on death instrument recorded on the house? Not available in all states, however... My understanding is that assets passing to designated beneficiaries are outside the estate and are not subject to being tapped to pay off the debts of the estate. (I'm assuming by "debts" you are talking about more than insurance premiums which they would of course want to keep paying until the estate is liquidated.) Maybe you meant to say your heirs would need to pay your debts from the estate assets. Or were they co-signers on any of the debt you're worrying about? Maybe I was lucky that my employer did provide workshops that explained all of this to us. But it is only available if you take the workshop. Otherwise, read the plan documents. For example, with my former employer in order to carry health insurance over into retirement, you had to have been enrolled in one of the employer's health plans for the 5 years prior to retirement. They had a number of plans to choose from, and you didn't need to be with the same plan as long as you were getting health coverage through one of the plans for 5 years. A former coworker got caught up in this when her husband retired. He had been carrying the health coverage through his employer. When he retired, they switched to her employer's coverage. Only when she started in earnest to set a retirement date did she realize she would have to work longer to keep the coverage. They both are under age 65. Ask questions, read the documents, ask more questions. It can be a minefield.
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seriousthistime
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Post by seriousthistime on Oct 3, 2023 15:23:49 GMT -5
TheOtherMe beat me to it. Great minds think alike!
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muffyinthered
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Post by muffyinthered on Oct 4, 2023 9:42:54 GMT -5
lark1964 - My husband and I retired 5 years ago. Make sure that you still have money in your 401k or IRA because you will need it. You still have to pay for Medicare and you definitely need to buy supplemental insurance because Medicare doesn't pay for everything. Only about 80% of bills and you are responsible for the rest of the payment. And of course the supplemental insurance premiums are going up every year. Being retired is nice but costly, so don't mess up with your 401k or your pension. You will need it all.
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debthaven
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Post by debthaven on Oct 4, 2023 10:33:53 GMT -5
lark1964 55-60K seems like a lot so close to retirement. Could you pay off the smaller items with the 10K loan and rent out the room to a paying tenant instead? Also, maybe it would be wiser to wait on the solar panels?
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Rukh O'Rorke
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Post by Rukh O'Rorke on Oct 4, 2023 10:59:23 GMT -5
OK, let's assess: I am changing the game (for myself, yay, me!). It's not without complexities, but overall it will make some massive differences. The money I am going to access is from my pension. As I mentioned before, when you get to my age (59 1/2), you have options you may not have thought of before, certainly when my boyfriend - who sells insurance - told me about this, it was not something I'd even known about, much less considered. And he laughed, he says it's not something anyone is told about, they don't tell you your options in HR and 401K money management groups. And most insurance companies don't tell you a lot because one of the things that I'm going to be changing this year is to drop my balance on my term life - I'll be 60, and when you turn 60, your premium value gets cut in half, and every year after that it goes down. So where I'm currently paying $109 / mo into my term life to get 3x my salary in cash for my beneficiaries, as of April 3, 2024, that payout will be cut in half - but I'd still be paying $109 (or whatever, probably $115 next year). I'm dropping the extended insurance payout. My family will still receive one year's salary from my job if I die sooner than later. But one of the things would be my bills would also go to my beneficiaries, so I'll be fixing that with paying things off. (All your debts go to your family and friends, keep this in mind!) What I'm receiving is $10K direct from my pension (actually $12,500*80%), and I'll pay off the $4,500 balance of a pension loan I took about 52 months ago (not quite five years) of $32,000. This loan carries interest of 4.25%, fixed. This has been locking my pension value, it was useful when I did it, but now I need to clean things up. So after that $4,500, I'll also pay off some small fry, Wayfair, Care Credit, Citibank, BofA, Mattress Firm. And it won't have a huge impact on the balance of my pension. I'll also get new glasses and I have to buy a set of tires. (Life happens). THEN - I'll be able to borrow against my pension again - a considerably higher number than $32K, I am crossing my fingers for $55-60K. I'll get this as another low interest pension loan (considering prime these days? Probably not less than 8%), and then I'll pay off the high interest things - Lowe's, Target, Home Depot, I'll be able to make a dent in Discover, and what I have left I'll put into savings as well as do a few things in my house, like solar panels, my heat exhaust fan, and finish the last few things with the renovation that I had to halt when I ran out of money. This will give me a new pension loan bill of probably about $1250-1400 a month, but overall will kill about $1800 month in bills. Plus the new loan's interest will be *considerably* less than the exorbitant interest rates we're all buried with these days. The nice thing about taking out the pension loan, also, is that it does not affect my credit, so that will soar, yay, me! Did I mention that before all of this began, I was out of debt for except my mortgage and car payment? My score was 742. It's 634 right now. *sigh* So - tomorrow, the first deposit of $10K should process, according to TIAA, it might take a day or two to show up, but it will be there, if not tomorrow, by Friday. And the games begin! Yay! I'll post updates probably about the 15th. This has me concerned, Lark. I've heard horror stories of people borrowing from and cashing out their retirement resources, only to declare bankrupcy later - and all those retirement funds would have been protected. I think people don't talk about these options because they aren't what the retirement money is for.
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seriousthistime
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Post by seriousthistime on Oct 4, 2023 11:14:20 GMT -5
To be honest, there are times when withdrawing money from a 401k or IRA is a good move. I withdrew a chunk of money from an IRA when I was 65 and still working. I used it for a larger downpayment on a house purchase in a pricey market. Paid a bunch in taxes to do that. When I sold the house 6 years later, my equity had more than doubled. Thanks to that, and a move to a less pricey market, I could pay cash for my house. But in this particular case, lark1964 is not simply transferring the asset from the retirement account to a different appreciating asset.
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muffyinthered
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Post by muffyinthered on Oct 4, 2023 11:46:25 GMT -5
lark1964 - Just remember even if you pay back the 401k you will lose those years of appreciation of the money in the account. I am not sure how long you plan to work but with the amount you mentioned you are thinking of taking out you would have to work a bunch of years. Unless you have a rich relative leaving you a bunch of money down the road, I would not suggest you do this. Take it from me, retirement is expensive.
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debthaven
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Post by debthaven on Oct 4, 2023 12:58:51 GMT -5
This will give me a new pension loan bill of probably about $1250-1400 a month, but overall will kill about $1800 month in bills.
There is not a huge difference between 1400 and 1800/month... it's not orders of magnitude.
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Post by minnesotapaintlady on Oct 4, 2023 13:34:23 GMT -5
So where I'm currently paying $109 / mo into my term life to get 3x my salary in cash for my beneficiaries, That seems like very expensive life insurance (although I'm assuming 3X your salary isn't millions of dollars ) I currently pay $35/month for 500K of term life...although I did get this at 42, not 60. Do you need life insurance? Nobody is depending on your income and the free 1X your salary should be able to handle any final expenses.
As previous posters have stated, the bills do not go to your family. If your estate can't cover them, the creditors are SOL.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Oct 4, 2023 16:40:10 GMT -5
So where I'm currently paying $109 / mo into my term life to get 3x my salary in cash for my beneficiaries, That seems like very expensive life insurance (although I'm assuming 3X your salary isn't millions of dollars ) I currently pay $35/month for 500K of term life...although I did get this at 42, not 60. Do you need life insurance? Nobody is depending on your income and the free 1X your salary should be able to handle any final expenses.
As previous posters have stated, the bills do not go to your family. If your estate can't cover them, the creditors are SOL.
The cost for mine is about the same as larks I think, but company pays, and I just have to do taxes on that cost as a taxable benefit
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Rukh O'Rorke
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Post by Rukh O'Rorke on Oct 4, 2023 16:43:42 GMT -5
the benefit is about 350k should I die, I'm unclear if it is double for ADD? but I get the 350 if i lose some limbs...
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nidena
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Post by nidena on Oct 4, 2023 21:11:57 GMT -5
lark1964 55-60K seems like a lot so close to retirement. Could you pay off the smaller items with the 10K loan and rent out the room to a paying tenant instead? Also, maybe it would be wiser to wait on the solar panels? I don't see lark1964 getting a new tenant any time soon. She's currently trying to get rid of the one who's been there since late last year and hasn't paid a penny since the first couple months. She keeps telling me to hold off coming out to drag the woman out by her ears.
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debthaven
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Post by debthaven on Oct 5, 2023 1:26:24 GMT -5
Ugh I’m sorry to hear that. 😞
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lark1964
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Post by lark1964 on Oct 5, 2023 5:56:07 GMT -5
Jeez. People, my retirement fund is over $325K. I can borrow against $100K of it (I don't understand the breakdown, but it's my Roth plus something else as part of my fund), and really, I can only borrow up to 80% of THAT... And I'm not retiring tomorrow.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Oct 5, 2023 11:34:42 GMT -5
Jeez. People, my retirement fund is over $325K. I can borrow against $100K of it (I don't understand the breakdown, but it's my Roth plus something else as part of my fund), and really, I can only borrow up to 80% of THAT... And I'm not retiring tomorrow. using the 4% rule, 325k provides $1083 per month for retirement, before any applicable taxes, (I think assumes at least 60% stocks) At 225k, that drops to 750 a month. If we use the phil YM button and assume this money is invested in the market for 5 years (since you not retiring right now...) That would be 1825 per month. That would be 1263 per month. Of course we all make decisions based on 1000s of factors going into our lives at that moment, just providing some context for how these decisions may change you future finances, and how I use this stuff to help my decision making.
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lark1964
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Post by lark1964 on Oct 5, 2023 11:44:36 GMT -5
That would be 1825 per month. << ?? I'm not sure I understand what you're talking about? I put 12.5% of my salary into my pension fund every month. I'll continue to contribute to it. The fund has been steadily growing for 15 years. I started out putting... I think 8% after I'd been at my job three years? I've increased it 0.5% every couple of years, plus I put in ROTH funds, so about 17% of my salary goes in between the two. The current estimate is that I have $5,285 / mo with retirement at 65, if I stay there another 5 years. I don't want to remain another 5, I'm looking at possibly 2 more. Maybe 3. Because... it's 62, now for me be eligible for SS benefits, etc. If they still exist in two years, that is. I'm going to eat up as much of my mortgage as I can between now and then, as well. And I plan to pay back as much as possible as I borrow, I would prefer to pay it all off if it's possible, I'm certainly going to try.
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lark1964
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Post by lark1964 on Oct 5, 2023 11:46:59 GMT -5
the benefit is about 350k should I die, I'm unclear if it is double for ADD? but I get the 350 if i lose some limbs... It's always weird they offer things like that - if you have "an amputation against your will" - does anyone ever seek one out?
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Rukh O'Rorke
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Post by Rukh O'Rorke on Oct 5, 2023 11:50:28 GMT -5
the benefit is about 350k should I die, I'm unclear if it is double for ADD? but I get the 350 if i lose some limbs... It's always weird they offer things like that - if you have "an amputation against your will" - does anyone ever seek one out? oh my gosh.....would be horrible that someone might think they need the money that badly?? also - sadly there are some people who want to be amputees....and deliberately destroy their limbs....very crazy to think that...
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Post by minnesotapaintlady on Oct 5, 2023 12:35:43 GMT -5
That would be 1825 per month. << ?? I'm not sure I understand what you're talking about? I put 12.5% of my salary into my pension fund every month. I'll continue to contribute to it. The fund has been steadily growing for 15 years. I started out putting... I think 8% after I'd been at my job three years? I've increased it 0.5% every couple of years, plus I put in ROTH funds, so about 17% of my salary goes in between the two. The current estimate is that I have $5,285 / mo with retirement at 65, if I stay there another 5 years. I don't want to remain another 5, I'm looking at possibly 2 more. Maybe 3. Because... it's 62, now for me be eligible for SS benefits, etc. If they still exist in two years, that is. I'm going to eat up as much of my mortgage as I can between now and then, as well. And I plan to pay back as much as possible as I borrow, I would prefer to pay it all off if it's possible, I'm certainly going to try. Is the 325K in addition to the pension or the cash value of your pension?
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lark1964
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Post by lark1964 on Oct 5, 2023 14:05:22 GMT -5
OK. I have $325 currently in my pension. I can borrow 80% against $119,000. Or that was the total, because I made the withdrawal of $10K (80% is $12.5K), so now my total of my one fund - the "active" fund - is ~$106K. And then I have the rest of it, the "retirement" portion which I cannot touch in any way shape form or fashion until I retire, that's another ~$206K.
And I'm working for the next year or two, at least, making regular contributions, it will be much better before I do finally hang up my shingle.
As for the other thing - I know, I recall watching ER one night, a couple of strung out addicts had decided to chop off one's left arm so they could collect the amputation payout from his insurance. It was disturbing to say the least...
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TheOtherMe
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Post by TheOtherMe on Oct 5, 2023 14:45:19 GMT -5
Do you understand that debts pass to your estate and not to your family and friends unless they co-signed loans for you.
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Post by minnesotapaintlady on Oct 5, 2023 15:17:49 GMT -5
OK. I have $325 currently in my pension. I can borrow 80% against $119,000. Or that was the total, because I made the withdrawal of $10K (80% is $12.5K), so now my total of my one fund - the "active" fund - is ~$106K. And then I have the rest of it, the "retirement" portion which I cannot touch in any way shape form or fashion until I retire, that's another ~$206K. And I'm working for the next year or two, at least, making regular contributions, it will be much better before I do finally hang up my shingle. As for the other thing - I know, I recall watching ER one night, a couple of strung out addicts had decided to chop off one's left arm so they could collect the amputation payout from his insurance. It was disturbing to say the least... Totally apologize for going off on a tangent, but I'm perplexed that the can manage a 63K/year payout on a 325K account. Even if it doubles by age 65 that's a 10% annual draw. But, I admit I know zilch about pensions and maybe this is just "your" account and the employer has a matching one or something?
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