top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Hitting the retirement fund allowable?

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Hitting the retirement fund allowable?

    I think this was brought up before but here goes. Obviously, having filed for ch.7 the beginning of month, I am barely making it. I make $1,600/mo clear (that's Florida for you.) and have a great job. However, it's not enough to take care of all the bills without flip/floping on which to pay when. My 341 is Nov. 15th in Tampa.

    Can I take any money out of my Oppenheimer SEP without creating a problem to pay my rent, for example? If this is possible, would I have to wait till my 341 or after? I don't have any disposable income and my case is no asset...Don't want any red flags.

    I'm due for a raise after the first of the year but I don't know for how much. My rent is 700/mo and trying to get my car insurance down from 290/mo...remainder of which is not enough to pay the bills w/o help. My boyfriend was helping me but is between jobs at the moment. I also have $10K in a TIAA/CREF retirement fund that I'd like to dissolve & like pay up rent for a while. I also pay 275/mo child support...I am just running on empty...
    Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
    Who it was we were below, where we've been and where we go
    Tags: None
    #2
    If you take money out rather than taking out a loan, you'll need to pay taxes and penalties. You would likely clear only about 50% of the money.

    Hitting up your retirement fund is a very bad financial move to resolve a short-term cash flow problem. And, unfortunately, in this case, it sounds like you may have a longer-term problem where you're just not earning enough.

    Have you considered any other alternatives? Think about what you'd do if you didn't have any retirement savings. You won't if you cash it out now and then do it again in the future. Eventually, the pot will be empty, and you'll be struggling to make it right on through your retirement years.

    Is it just the filing fee that put you in a jam? If you're not paying on any of your debts, you should have enough to make it. If not, you're going to need to make some more permanent changes with your finances.

    Comment

      #3
      I was thinking of hitting up the TIAA..

      because it is something that is only going to pay me $90 a month come 2025. It's been sitting since 1987...like I said, my rent is 700/mo. and I make 1,500/mo...the next 700 is child support 275 and car insurance 290 = 565...700-565 leaves 135...electric is 100...cell phone 70...food? who can eat...it may be a short term issue until my boyfriend can help me out but still...? I'm going to try and get the car insurance dropped a 100...but rent is not going to change. Rent in Florida in the Bradenton/Sarasota area is high due to our new found popularity from the NYTimes...700 is cheap...even 5K from the TIAA fund would give me 6 months to pull things together. I have another retirement fund so I'm not out of it....I just don't want to get in trouble or appear to have disposable income...and I don't....with electric at 100, cable at 50, water at 40, gas 40/week...there's no way I can continue like this...yes, maybe a second job...?
      Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
      Who it was we were below, where we've been and where we go

      Comment

        #4
        It sounds like your are in a squeeze even having filed BK. Lightning is right. Despite the fact you probably are staying in a relatively inexpensive place in Florida, you still dont have any money left over for emergencies, etc., and I would not count on someone else, i.e, boyfriend to help because that again is a short term solution. $700 for rent is too much on the money you bring home. You have choices; work a second job, move to a cheaper place or get a roommate to split expenses. Even if you could withdraw money from your retirement it will cost you taxwise and it might indeed send up a red flag to the trustee. As painful as it is to hear you have to have a long term plan. Having filed BK and having it discharged has changed drastically the way my husband and I do business. If those of us who have had to file dont change our way of doing things we will be right back where we started. Bottom line is you can borrow your way out of debt.

        Comment

          #5
          correction sorry....you CANNOT BORROW YOUR WAY OUT OF DEBT.....

          Comment

            #6
            Boyfriend is the one who put me...

            in this squeeze...he's supposed to be helping not hindering...I have another month of being ok...but if he doesn't help, I need another job or a roomate or to sleep at work!
            Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
            Who it was we were below, where we've been and where we go

            Comment

              #7
              How short are you each month? Looks like you've got a food budget only an anorexic could love. BF lives with you? Of course, the best 'off the radar' solution would be for him to pick up some seasonal work and throw some money into the pot - most retailers are hiring for jobs thru Christmas. If you're way in the hole each month, you might take one yourself, if you have to, but I'd try to stay even, or even a little negative with respect to your listed expenses on your petition.

              I have followed a local case in which an older man w/ no job was pulling $2K per month from his IRA to pay mortgage and living expenses, and he did receive his discharge in July, so I guess that this can work - I'd just hate to see you do it if you don't absolutely have to.

              Comment

                #8
                Being that all my ducks are in order...

                Originally posted by bezoar
                How short are you each month? Looks like you've got a food budget only an anorexic could love. BF lives with you? Of course, the best 'off the radar' solution would be for him to pick up some seasonal work and throw some money into the pot - most retailers are hiring for jobs thru Christmas. If you're way in the hole each month, you might take one yourself, if you have to, but I'd try to stay even, or even a little negative with respect to your listed expenses on your petition.

                I have followed a local case in which an older man w/ no job was pulling $2K per month from his IRA to pay mortgage and living expenses, and he did receive his discharge in July, so I guess that this can work - I'd just hate to see you do it if you don't absolutely have to.
                I hate to have to do something like this....so I'm sitting here thinking....
                Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
                Who it was we were below, where we've been and where we go

                Comment

                  #9
                  If your boyfriend is supposed to be helping out with bills (assuming you live together), and he's not, then you both have to adjust your lifestyles to fit within the income constraints you have. There's only one difference between you guys and a married couple, and that's a legally binding contract. If you were married and he lost his job or stopped paying the bills, you'd either have to start earning more to cover the gap, cut expenses, or get a divorce.

                  Comment

                  Previous template Next

                  bottom Ad Widget

                  Collapse
                  Working...
                  X