Help Debts

Posts Tagged ‘401k’

i’m wondering which, if any, of my debts i should pay off with my 401k money. i have a one-time penalty-free withdrawal, and i would like to make the most of it. based on my debts, am i better off investing the 401k and letting it grow, or using it to pay off some/all of my debts?

ASSET
401k money- ,000 (minus whatever taxes will be taken out when i withdraw, this is what i have to play with)

DEBT
,000 promissary note (interest free) to pay off over 20 years (5/month)
00 credit card (currently on a promotional 0% interest rate)
00 credit card (6.9% interest)
00 student loan (2.5% interest)

so, my debt is mostly low-interest or interest-free, and i’m wondering how to handle using the 401k money…

pay some of it off, invest the rest?

pay all of it off, invest the rest?

continue making monthly payment, and invest the entire 401k?

thanks in advance!
i got divorced and was told i had a one-time opportunity to take out some money. was this incorrect information?

I have credit card debts equal to 15% of the value of my 401k. I can take a loan from my 401k and pay it back over 5 years at 8.5%. Currently my credit cards have a rate 3-5 percentage points above that. I am 30 years old and contribute the max to my 401k. My feeling is that I might as well be paying the interest to myself instead of to the credit cards. Also I am 25-30 years away from retiring. I can use the money I save from paying my credit cards each month and start a Roth IRA and/or invest it in mutual funds and stocks as well as college plans for my daughter. I also have money in mutual funds that I could liquidate to pay my credit cards. What do you think is the best option? I figure I am young enough where this is a good option because I know you really are not supposed to use your 401k for loans

I have a great credit history and score, never late on payments, and pay more than the minimum due, but I don’t know if I should refinace house, do something with 401k, or get a big loan. I don’t know the differnce between credit counseling and debt consolidation, or other options I may have and not even know about, I would love to not have to hurt my credit score… I’m not even considering bankruptcy, just want to get these stupid cards paid off!

I have a lot of debt and I am getting sued for some past debt. I know that taking money out of the 401k reduces my retirement savings, but isn’t that better than debt problems? I have 30 years left to work so I could build it back up over time…

What if they racked up K in credit card debt and borrowed against their 401K for a down payment on their house and I cannot sell the house for more than what is owed? Do I have to pay for it?
I am the executor or executrix of the estate. Obviously I am not going to execute my parent!

I’m not very good in giving financial advices so please help my friend. She has substantial money invested in her 401k. However, she has debts incurred in the years past and she would want to pay it off. Would it be better if she just close her 401k and start her life debt free (or at least with less debt). She knows she will be taxed about 7% but she said she has to do something. Help! Thanks…:)
Thanks so much for your ideas and suggestions. I will forward everything to her. Her debts is not because of a lavish lifestyle but because of immigration lawyers , child care (she’s a single mom here; husband still in her birth country); rentals, etc. Her previous employer where she has 401k closed and moved to North Carolina. That’s why she’s kind of desperate. But thanks!

I am currently 35yrs old and would like to invest about k into some kind of stocks. I know there is a recession which in my mind means eventually all the stocks will bounce back. Granted there is no guarantee but it’s most likely. I am currently debt free so this is money that I do not need in another aspect of my life. I come from a very poor family so there is no rich relative to get advice from. If I were to ask my family about this they most likely would say to give it to them or hide it under my mattress! lol So any help would be greatly appreciated.
I do not have a 401k at work I am in the military and I am contributing to my TSP. I am already saving for my daughters college fund which has been 0 a month since I was 5 months pregnant (she is now 11yrs old). Also I have no mortgage since I do not own a home and I live in Germany. So at this point this money is literally gathering dust.