Deleted
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Post by Deleted on May 22, 2011 19:15:57 GMT -5
MMC, I agree, they can probably afford it, if all continues to go well. But would you really be comfortable with that level of debt on three depreciating assets, and borrowing more for the kitchen? And having that little in the bank in savings? I certainly wouldn't. And I'm one of the few people here that find it easier to pay off debt than to save LOL. The trailer payment is going away soon and the truck should be at the point where it isn't under water anymore. The boat is another story. If they feel good about their job's stability, then I still say go for it.. If we back out unemployed, underemployed, and discouraged, we still have 80% of the working population stable. I'm ready for people with means to start spending again to break us out of stagnation.
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Gardening Grandma
Senior Associate
Joined: Dec 20, 2010 13:39:46 GMT -5
Posts: 17,962
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Post by Gardening Grandma on May 22, 2011 20:47:49 GMT -5
"You may think you have a stable job, all it takes is a buy out by another company or hedge fund and then a reorganization of your company to find out quickly what can happen."
Or a dr saying, I don't like the looks of this. I'm going to order more tests. You find out that you are seriously ill and can't work any longer. So you lose your job and health insurance along with it. Now you are ill, can't work and don't have health insurance to cover treatment. An EF of $11,000 has disappeared. Now what?
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schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,817
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Post by schildi on May 22, 2011 21:44:03 GMT -5
"You may think you have a stable job, all it takes is a buy out by another company or hedge fund and then a reorganization of your company to find out quickly what can happen." Or a dr saying, I don't like the looks of this. I'm going to order more tests. You find out that you are seriously ill and can't work any longer. So you lose your job and health insurance along with it. Now you are ill, can't work and don't have health insurance to cover treatment. An EF of $11,000 has disappeared. Now what? All true, but in that case any reasonable EF most likely would not cut it for very long.
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Deleted
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Post by Deleted on May 22, 2011 23:54:45 GMT -5
"You may think you have a stable job, all it takes is a buy out by another company or hedge fund and then a reorganization of your company to find out quickly what can happen." Or a dr saying, I don't like the looks of this. I'm going to order more tests. You find out that you are seriously ill and can't work any longer. So you lose your job and health insurance along with it. Now you are ill, can't work and don't have health insurance to cover treatment. An EF of $11,000 has disappeared. Now what? All true, but in that case any reasonable EF most likely would not cut it for very long. When I look over their budget, I see a bunch of stuff that could be slashed in short order including getting rid of the truck, trailer, and boat, which also greatly lowers insurance costs. So take the remaining employed spouse, add unemployment benefits, and cut the budget to the bone and they could go a long time with a modest EF and the 401k is the big safety net. Easy enough to avoid penalties on the 401k - all they have to do is get divorced and have 1/2 go to her. ;D
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Post by mawmawandlovingit on May 23, 2011 5:46:24 GMT -5
So, after reading all the responses and really thinking about it this weekend, I think what I have decided to do is.......put 1/2 of what is left of the budget into savings and then 1/2 into paying off the debt. I should have the trailer paid off in no time, then I can start working on the boat and so on. I will try to get at least 6 months into my EF before I begin to think about the remodel. More than likely I will not wait until I save up the money for the remodel since that will take years. Once I get one or two of the loans paid off and my EF up I will consider pulling out from the Heloc.
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happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
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Post by happyscooter on May 23, 2011 6:28:36 GMT -5
'First 20% would be withheld for taxes and since you are in such at least that bracket or possibly higher you might have to pay even more. There will be a 10% early withdrawal penalty if he is not at least 55 1/2. So 30% off the top. $485-145=$340'
Now that the original question has been answered, I have a question for patstab #32. Aren't the taxes percentage the same as regular taxes, like 28%? Also isn't the age 59 1/2?
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Deleted
Joined: Jun 30, 2024 1:59:03 GMT -5
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Post by Deleted on May 23, 2011 7:52:59 GMT -5
'First 20% would be withheld for taxes and since you are in such at least that bracket or possibly higher you might have to pay even more. There will be a 10% early withdrawal penalty if he is not at least 55 1/2. So 30% off the top. $485-145=$340' Now that the original question has been answered, I have a question for patstab #32. Aren't the taxes percentage the same as regular taxes, like 28%? Also isn't the age 59 1/2? Yes, withdrawals are subject to the person's normal tax rate. They just take 20% up front as a "down payment".. The 55 age is where someone can take a hardship withdrawal penalty free under certain conditions.
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happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
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Post by happyscooter on May 23, 2011 8:32:37 GMT -5
Oh, I see.
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