Serious question about finance

[babs7262]

I would like some input. I know I could ask my brother but he would be biased about this and Im really looking for some serious input about this and I know there are some math/numbers people in here

Hypothetical Question: Let's say there is a married couple, the husband works full time and contributes 10% of his salary in a 401K plan that his company offers and kicks in 50%. The wife is disabled and only makes half of what she use to make, infact all but $40 of her SSD check goes for the rent.

The husband makes a decent living (for not having children) but in the winter months he barely makes a full week because of weather.

It is now winter and they are having a rough time because of medical bills and prescriptions and the rising gas prices etc...

Why should they have to struggle when they have a nice chunk of money sitting in a 401k plan. What about now? What if 20 yrs from doesnt exist? Why should the wife have to go w/o pain meds this month while money is just sitting there?

Would it be so wrong to discontinue the 401K, take 70% of it to roll over in a CD or Roth IRA and put the rest in your savings account so you can live like a normal human being? Can this be done? Does the couple have the option of restarting the 401K in another year to catch up on things? Is that so bad and taboo? I know penalties exist but I think the wife would rather have penalties than pain

What do you think? Please, Im asking for no smartass or funny comments

 

[RobWin]

babs7262, just suggest to them that they take out a loan against the plan right there at the employer but don't cash it out because of the taxes and the benefits that they would lose out on.

 

[BingoT]

Wow I feel your pain.
Like my 401k plan I can retire at 57 1/2 and live good.
It's not worth in the long run to alter the plan you started.
The penalties alone will kill ya.
If your income is below avg you have many organizations that will help to help ends meet to a point.Any help is better than none.

 

[lots0]

If you would close out your 401k and use the money to buy gold, you would be in better financial shape and you don't have to put up with all those bogus rules.

If people would have been buying gold instead of 'investing' in these 401k things, they would have increased their net worth by about 15x more than just investing the same amount in a 401k, and you don't have to worry that your gold will lose value and you end up with nothing, like what has happened to a lot of peoples 401k's.

You know what the banks were buying with the money you invested in your 401k??? The Banks were buying gold so they could profit off of that money you invested and still be able to give you a few dollars in interest.

 

[babs7262]

Lots0
Isnt that being the Monday morning quarterback at this point for the couple? How much more do you think it would go up before plummeting again? If it were 10 years ago it would of worked but buying gold now when it is now doubled would be taking a huge risk, wouldnt it? Plus the penalties of w/d from the 401k would eat up the profit, or would I not have penalties because it's getting moved to gold instead of just getting w/d?

 

[RobWin]

If you would close out your 401k and use the money to buy gold, you would be in better financial shape and you don't have to put up with all those bogus rules.

If people would have been buying gold instead of 'investing' in these 401k things, they would have increased their net worth by about 15x more than just investing the same amount in a 401k, and you don't have to worry that your gold will lose value and you end up with nothing, like what has happened to a lot of peoples 401k's.

You know what the banks were buying with the money you invested in your 401k??? The Banks were buying gold so they could profit off of that money you invested and still be able to give you a few dollars in interest.

Those are very good tips and points that you made there lots0 but it probably doesn't help the couple in the interim...JMHO

 

[BingoT]

I rather buy Microsoft shares along time ago too when that all started also.
I can kick myself in the @

 

[LaurieJim]

babs7262, just suggest to them that they take out a loan against the plan right there at the employer but don't cash it out because of the taxes and the benefits that they would lose out on.

babs, rob just gave you the best advice and thats what i would tell you also. just borrow the min. it will take you to get by.

 

[lots0]

I believe, moving the money into gold can be considered rolling it over into another investment and avoiding the penalties. Best to check your 401k rules to be sure. 401k rules are not the same from bank to bank.

Gold is not going down anytime in the foreseeable future, the days of cheap gold are gone forever, IMO.

Don't trust my advice or anyones about this, do your own research and always do what you think is best for you.

 

[oldtrvlagt]

Just a thought but depending on your income there are drug companies that will give you a significant break on your medications or give them to you for free. I can't remember the name of the program but I have seen it and maybe if you Google it you will find it. Also, the borrowing on your 401K does make sense rather than cashing it out because of the penalties..who knows, you may have more money in the future and can repay the loan without penalties and/or interest. Good Luck!

 

[RobWin]

Just a thought but depending on your income there are drug companies that will give you a significant break on your medications or give them to you for free. I can't remember the name of the program but I have seen it and maybe if you Google it you will find it. Also, the borrowing on your 401K does make sense rather than cashing it out because of the penalties..who knows, you may have more money in the future and can repay the loan without penalties and/or interest. Good Luck!

And don't forget Wal-Mart has $4.00 prescriptions...

 

[BingoT]

For drugs the best way is Medco Health.
They mail them to you
This is a in drug prescriptions

 

[LaurieJim]

And don't forget Wal-Mart has $4.00 prescriptions...

.....thats also a great point and if your near a cvs drug store they to will honor the same price if the drug is on the 4.00 cost list.i know alot of it depends on the drug itself and how the doctor writes out the script and the amount of the dosage, so my buddy the pharmicist told me, montel williams also has a deal that was on t.v awhile back but i havent seen anything on it recently.please be careful of these drug savings programs going around also, they say they will save you money but you end up losing money in the end. it took me forever to get my mom off of one as she is diabetic and they just kept taking the money out until we and the bank threatened a lawsuit.my mothers doctor now gives my mom samples that last 3 and 4 months until her next appointment and i can tell you insulin and strips are not cheap, so ask your doctor also if they can do the same barbara. hope all works out..................laurie

 

[babs7262]

None of my drugs are on the $4 list at Walmart,Target or CVS......not one! out of six I take!

PA...they think Rich and I make too much money for any drug company help. I applied at all of them and have been turned down. We make too much money. I have no idea where all of it goes....LOL....I know what your thinking but it really isnt gambling. Im a $10- $20 a day habit, sometimes I skip days,which is fair considering I dont have to drive to a job or buy lunch and need some form of entertainment. PA is just expensive. I know people in other states and or towns in my state that pay $500 for the same apt we pay $819 a month for but we are on a second floor with heavy furniture and I just dont have the physical whatever to move.

Ill just buy the most important one tomorrow and if we get this check we are expecting on Monday night, Ill buy the other one on Tuesday. Im just annoyed that Rich spends so much time giving free estimates for roof jobs and they never have the money to get the job done. And with VInny last week and my friend the week before, I guess Im just at the end of my rope with all of this shit going on at once.

Just cross your fingers and hope RIch gets this side job. They HAVE to get a new roof, it will leak shortly and it will give us an extra $5K to put in the bank. We will know by the end of the week . Just forget I wrote this .....I was vulnerable at the time. There are people much worse off than us and we always bounce back with even more than we thought. Its that time of year, you'll see, Ill be fine and write this again next year at this timeLOL

Sorry, just needed to vent I guess. You all gave sound advice and his boss is going to loan us $500 and take from his check so we dont pay penalties from using the 401K. THey are great to us. And if we are alive and well in 20 years, we'll be loaded!! LMAO

 

[RobWin]

None of my drugs are on the $4 list at Walmart,Target or CVS......not one! out of six I take!

PA...they think Rich and I make too much money for any drug company help. I applied at all of them and have been turned down. We make too much money. I have no idea where all of it goes....LOL....I know what your thinking but it really isnt gambling. Im a $10- $20 a day habit, sometimes I skip days,which is fair considering I dont have to drive to a job or buy lunch and need some form of entertainment. PA is just expensive. I know people in other states and or towns in my state that pay $500 for the same apt we pay $819 a month for but we are on a second floor with heavy furniture and I just dont have the physical whatever to move.

Ill just buy the most important one tomorrow and if we get this check we are expecting on Monday night, Ill buy the other one on Tuesday. Im just annoyed that Rich spends so much time giving free estimates for roof jobs and they never have the money to get the job done. And with VInny last week and my friend the week before, I guess Im just at the end of my rope with all of this shit going on at once.

Just cross your fingers and hope RIch gets this side job. They HAVE to get a new roof, it will leak shortly and it will give us an extra $5K to put in the bank. We will know by the end of the week . Just forget I wrote this .....I was vulnerable at the time. There are people much worse off than us and we always bounce back with even more than we thought. Its that time of year, you'll see, Ill be fine and write this again next year at this timeLOL

Sorry, just needed to vent I guess. You all gave sound advice and his boss is going to loan us $500 and take from his check so we dont pay penalties from using the 401K. THey are great to us. And if we are alive and well in 20 years, we'll be loaded!! LMAO

Hang in there Babs and be strong, things will get better for you soon, I'll say a prayer for you too...