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Are We Being Stupid????

Discuss Finances Here. *Note, this is not a replacement for Professional advice and should not be used for such.

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Re: Are We Being Stupid????

Postby celt » Fri Sep 26, 2014 7:02 am

Depending on the amount of debt.......................if extreme, you may just have to consider bankruptcy. Regarding incoming finances, you could find some type of work to do. Clerical due to your injury. It takes tough choices and even tougher resolve to remedy financial concerns. Dig deep and you will prevail.
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Re: Are We Being Stupid????

Postby ohiosusan89 » Fri Sep 26, 2014 8:38 am

celt wrote:Depending on the amount of debt.......................if extreme, you may just have to consider bankruptcy. Regarding incoming finances, you could find some type of work to do. Clerical due to your injury. It takes tough choices and even tougher resolve to remedy financial concerns. Dig deep and you will prevail.

Nope not extreme debt and we are current on all of our bills. I would love to find a clerical job somewhere but I have no formal clerical training. Thank you for your input. I appreciate everyone's input.
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Re: Are We Being Stupid????

Postby ohiosusan89 » Fri Sep 26, 2014 8:42 am

JayJay wrote:
Grizbrb wrote:Set the financial part aside a minute . What I hear is that the job is taking its toll on him. That is reason enough to change jobs. At one time I was an EMT working 80 hrs a week . There came a point 9 years into it where it started to effect my health very badly . I stepped away from that kind of work and have not regretted it. Money doesn't matter if the job kills you or wrecks your health.
Back to the financial side start paying off your debts . If you are living in debt now at this pay scale then what happens when you cut that pay. You may pay off the credit card with the Retirement funds but find yourself back in debt . I don't know all the details so just my views.

I understood if there was to be a job change, the 401 would be cashed out to pay the 2 credit cards and car debt.
The poster said she had learned her lesson about credit card debt-- I say one thing....all reports say the winter will be as bad as last year or worse. Take that into consideration.
I know we are debt free here but for the mortgage, and the free feeling is awesome.

I paid 3 credit cards off 4 years ago in 8 months(that means I started with one payoff, added another next month, and settled the third the last 3 months --so they overlapped)with a discount deal with all companies. BUT, we didn't know at the time the companies were making these deals to acquire quick cash (they were all almost bankrupt)and our credit shows one as a charge off---I have no idea why only one was on our credit score report.
We sold a 4 wheeler, my older car (36 MPG, and that hurt), our 2000 Honda Shadow motorcycle.
WE LEARNED OUR LESSON..CASH FOR EVERYTHING NOW AND NO CREDIT CARDS.
I do believe prayer does help. Right after that, my husband started receiving disability for his health issues from Vietnam. Without that, we would have had no extra to finance our prepping.

Good luck. And may God bless and help you make the feasible decision. All our needs are different. As are our priorities.

Thank you JayJay for telling me a little of your experience. If what my husband said to me this morning is any indication I think he is close to a decision.
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Re: Are We Being Stupid????

Postby toxoph » Fri Sep 26, 2014 8:52 am

I'm more an optimist than most here, the world will continue much as it always has. I prep because its smart but I also plan as though I will never need them, which is the more likely scenario.

At 43, retirement seems distant but trust me, it comes quicker than you think.

Do NOT cash the 401 unless absolutly neccessary. Pay down debt asap. Scrimp, save, find alternate income and seek a financial advisor.
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Re: Are We Being Stupid????

Postby PatrioticStabilist » Fri Sep 26, 2014 4:22 pm

43 is young, my son will be 45, you have a long time left, you guys are just kids. Get the finances together, may have to bite the bullet
and be frugal for awhile to get it together.

As far as you working, get some training in something, they have programs for the disabled if you are, no reason with no young children at home you can't be working at something also. What would you do if you lost your husband, you would have to do something, would be
prepared as no one ever knows. More education is the key to get out of poverty, it will open up a wealth of jobs.

Sounds like your son needs to do the same, will help all of you in the long run.

Good luck
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Re: Are We Being Stupid????

Postby ohiosusan89 » Fri Sep 26, 2014 6:17 pm

I agree that education is the key to get out of poverty; luckily we are nowhere near poverty.
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Re: Are We Being Stupid????

Postby PatrioticStabilist » Fri Sep 26, 2014 11:14 pm

Then don't cash in the 401k make a plan. Take either the smallest balance credit card and throw everything at it till its paid off with minimum payments on the others. Or the highest interest rate one. Then take that money and go at the next one and continue till they are paid off.

I'm sorry but I still see no reason you cannot work at something, obviously you are a good speller can construct sentences and get your point across so you are definitely able to learn. Do it, if nothing else for yourself like I said you never know what can happen. That's why I wanted a degree, I didn't want to end up in poverty if I lost my husband were divorced or whatever. They can become ill too.

And your young son definitely needs further education.

My son couldn't decide what he should do. He played around during and after high school so we would not pay for him to go to college because of that, mean I guess. He joined the army stayed in for 10 years, got 2 years of college. I kept telling him to finish, he thought an associates would do it. He worked for a contractor in S Korea for many years and his bosses encouraged him to finish. At the time he was working a lot of hours, part owner of a bar he was taking care of in his off hours, and was doing his college work online. It took him another year and a half with his wife griping because they didn't go out, really! It was only a few months after he finished he was hired by the DOD. He has done well but would not have without additional schooling.

It doesn't matter if its a vocational school or 2 year program or something, I think its doable. If you need a GED first work on that, then go from there. I have an accounting degree and if I needed to even now at almost 70 I could find something mainly because I keep my skillset up. It might only be temp or less money for a local business that needs part time but I could work as long as I have my mental faculties. And my husband will be 69 next year and is still very much in demand, so 43 is definitely still very young with another 20 working years in your life.
Again, it sounds like you folks situation is fixable just need to do a few things to make it happen.

Good luck to you.
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Re: Are We Being Stupid????

Postby Onegreenguy » Fri Sep 26, 2014 11:18 pm

My financial advice is contrary to most so take it FWIW. Cash in the 401k and pay off your debt. The interest you're paying on your debt is most assuredly higher than the interest you're getting on your 401k...so you'd come out financially ahead by paying off the debt. What good is a 401k if the stress of a job kills you off before you could ever use it? It's also a rather large assumption these days that an IRA/401k/SS will even be around when you need it. It boggles my mind all the preppers out there who are prepping for financial collapse yet have the bulk of their net worth tied up in paper assets like stocks, bonds, ETF's, mutual funds etc. http://theeconomiccollapseblog.com/arch ... erivatives There's other ways to look at having "money" for retirement. Try buying much (most) of what you need for retirement before retirement such as own outright a small energy efficient house on a few acres that's got a well and a septic system. That'll get rid of your monthly water and sewer bill in your retirement years. Put solar panels and/or wind power on your roof or in your yard to get rid of your electric bill. Grow/raise much of your own food to cut your food bill way down. I could go on and on...

I was in the restaurant business for almost 20 years until earlier this year. I had to get out, it was killing me...longer and longer hours filled with more and more stress, while the pay and benefits keep getting smaller and smaller. We came up with a plan (exit strategy really) and worked it to minimize the adjustment pains. I cashed out my 401k as well and spent it strategically. Yes, for now I make less but have MUCH more time to spend with my family, and garden/farm, as well as work on creating additional income streams instead of working 65+ hours a week.
"The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to its close. In its place we are entering a period of consequences."

-Winston Churchill's oft-quoted warning on the eve of World War II
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Re: Are We Being Stupid????

Postby PatrioticStabilist » Sat Sep 27, 2014 11:25 am

You are correct if the money is used to pay down debt and then they do not accumulate the debt again. It certainly would take
discipline to do that. I've seen so many people do the latter.

We keep most of ours in safe investments, earning nothing, but money market, CD's, and I bonds. To me the stock market has
become a ponzie scheme of sorts. To many people have lost their tails and are now reearning it all over again.

Still with everyone in the family helping it will make it easier also. Hope they can find a way that works for all members of the
family. There is no future in someone killing himself in a job.
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Re: Are We Being Stupid????

Postby JayJay » Sat Sep 27, 2014 12:24 pm

I know Dave Ramsey teaches differently--but my way worked for me. ;)
Pay the smallest debt you have as fast as you can....and then use that monthly payment no longer needed for that debt toward the next smallest debt ....then use those two monthly payments no longer needed toward the next smallest debt.
It takes discipline, but at my old age I now have one credit card. It gets used for online prepper orders and vitamins used to stock up from puritanpride and is always paid upon receiving statement; therefore no interest; I'm using them... and every other thing purchased in this house is bought with cash.

Cash in the 401k and pay off your debt. The interest you're paying on your debt is most assuredly higher than the interest you're getting on your 401k...

I agree with all of this statement.
Plus the fact that PISSLOSI is making threats to centralize all 401s, IRAs, bonds, savings and give a ?% each month to the holders IF they are worthy???
HAPPINESS is not a fish you catch but a fish you feed.
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Re: Are We Being Stupid????

Postby prepdoc » Wed Oct 08, 2014 2:03 pm

I think its possible to make a transition but it will take time and effort on everyones part in your home.

Is there a reason why you are not working? Are you collecting SSI or have a disability preventing you?

Have you had an honest conversation with your son about the financial expectations of him living there?

Have you thrown your credit cards "figuratively" away? combine both into one with the lowest possible interest rate and then NEVER EVER use it again?

There are plenty of opportunities to make $ if you put your mind to it. Do you have a craft/hobby or items you can make and sell? Do you have an account on ebay or other selling site? Can you grow some of your own food? Do you faithfully use coupons? Are you familiar with garage sales/thrift sales? Can you do something as simple as babysitting that adds income and is usually not on the books? What about house cleaning for someone? I pay my cleaning lady $20 an hour for a total of 6 hours a week or $120 a week, $20 a day extra if she watches my cats when im traveling or working out of town. With a gig like that you could put all of that $ on to the credit card bill.

Depleting your 401k is almost always a horrible idea
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Re: Are We Being Stupid????

Postby KazKaz » Thu Feb 09, 2017 3:03 am

Interesting post.
Although I'm sure it is not intentional, the contradictions are endless.
Since the initial inquiry is soliciting opinions, I will throw my perspective into the proverbial hat.
Simplify.
Know exactly where you stand before grasping for a solution out of some perceived need for a knee-jerk reaction.
If nobody involved requires life or death surgery, relax.
Sit down on a day off with the financial statements and a pot of coffee cooking, eliminate the distractions.. and get to work.
Audit yourselves.
Figure out the ins and outs of your financial standing.
Where can you make compromises, concessions, what are the priorities (short term and long term)?
Put them in order.
Now you have a goal, an objective.
Create stepping stones to encourage self-discipline.
Create a budget based on what you have now discovered in the process of spending a couple hours of pulling your hair out.
A retirement plan is typically a resource of last resort. Educating yourselves of the long term power of compound interest would be a real eye opener in terms of perspectives.
Nobody here can give you the solution to your personal riddle? That comes from within. You have all the pieces of the puzzle, and we can't see them.
I once had a 401k that I did very well with.
I made the mistake of borrowing against it to purchase a house. Economy ate my job a couple years later. The banking crisis of a decade ago ate the house.
I will never trust a bank to hold my money again.
But, that is my choice.
For others, the interest offered is enough to justify the risk.
To each their own.
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Re: Are We Being Stupid????

Postby theoutback » Thu Feb 09, 2017 5:05 am

Well, since this was resurrected from a few years ago, is there an update you care to share ohiosusan89? Just wondering if you made that big change.
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Re: Are We Being Stupid????

Postby KazKaz » Thu Feb 09, 2017 9:00 am

That's kinda what I was getting at.
The curiosity of knowing how the situation has evolved?
In reading through the post, I saw the month, but didn't notice the year. Oops!
Quite a difference between a 3 month old thread and a 27 month old one.
Hopefully everything worked out for the best?
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Re: Are We Being Stupid????

Postby ohiosusan89 » Thu Feb 09, 2017 11:18 pm

theoutback wrote:Well, since this was resurrected from a few years ago, is there an update you care to share ohiosusan89? Just wondering if you made that big change.

I will give an update. My husband actually held on for another year at his old job and gave his notice in November 2015 with his last day being the first Friday in December. Almost right away he got in with a temp service working for Honda. He started that in January of 2016 and we paid off all debts but the house. Unfortunately, he realized that factory work was not for him plus the pay was not the best and we couldn't afford the health insurance that was offered through the temp agency. We also found out that it could take up to 7 years to get permanently hired in to Honda. Fast forward to April and he got a message from his old job that they hoped things were working out but if things weren't they would love to have him back. To us it was divine intervention because we had been talking about him possibly trying to go back to driving a truck. He started back in May but instead of having 5 day a week routing he is in chain accounts which is nights and 4 days a week. But he only has to make the 45 minute commute 3 days a week because 2 of his delivery nights are on an overnight run. He actually likes it much better than his old work schedule. He also started back with a guaranteed weekly amount for pay which came in handy because my daughter, her husband, and three kids had to move in with us in May. They were with us until the beginning of September and weren't able to contribute much to the household budget because they were trying to save up money to get back in their own place. They had originally moved into a new place at the beginning of May and quickly discovered it was not a safe environment for the children and the landlord let them out of the lease but kept their deposit; which while hurt them financially it could have been much worse if the landlord had made them pay for the whole year of the lease. 2016 was a whirlwind of change and all of the plans I had for trying to better with my prepping went out the window. We just concentrated on getting through the Summer with so many extra mouths to feed and luckily I had a lot of canned and boxed food stored up that saved us on our grocery bill. I am hoping that 2017 is a little calmer on the home front than 2016 was.
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