Cashed out 401K pre-BK

[anonymuse]

I am fessing up. I did the same. Now I am scared sh*tless about what I am going to do in my old age. Seems there are lots of us. I talked to someone the other day who told me she had done the same after loosing her job.

I'm so scared too. I'm single and late 30-something. Want to get married (but no prospects.) Want children dearly. I'll be paying off student loans for some time yet. And I'm not making enough to have extra to even contribute to the 401K plan. I don't know if I'm more scared of not having a retirement fund or living the rest of my life alone for my job with no one to share my life with.

[anonymuse]

we have all done thinking its the right thing to do. I got bad advice from my lawyer about cashing one in and now the trustee to in the process of trying to get some of it back from the credit card company. I should have filed in 2002 when my business failed instead of dodging the creditors for three years.

I have lived and learned and am still learning.

At least it's nice to know that some trustees give a hoot that we did everything we could to avoid BK and even went into funds that we didn't know at the time would be protected.

[miss puff]

My hand is raised as well. We did a "hardship withdrawal" to keep the house and he gets penalized for 6 months and can't contribute to it.

[debtisbad]

Anon,

I am scared to death too. I have no pension or savings at this point. Some nights I don't even sleep. I am going back to school to try and start another career. Sometimes I just cry on my way coming back from school. Life has gotten so hard these days.

As for you, with your degree can you get a higher paying job? Maybe try to put a little away in some high return funds (probably china or india) where economies are growing fast. We are all going to have to play catch up. I figure, too, that I will be living out my old days in Mexico. Do you know how many retired Americans are living in Mexico these days? It is HUGE!!!! They even have their own website. Some left because they couldn't stand the politics, but some left because they could not afford to live here. I read their site sometimes at www.chapala.com

[anonymuse]

Anon,
As for you, with your degree can you get a higher paying job? Maybe try to put a little away in some high return funds (probably china or india) where economies are growing fast. We are all going to have to play catch up. I figure, too, that I will be living out my old days in Mexico. Do you know how many retired Americans are living in Mexico these days? It is HUGE!!!! They even have their own website. Some left because they couldn't stand the politics, but some left because they could not afford to live here. I read their site sometimes at www.chapala.com

I know this is probably not the most ethical thing to do (please don't slam me for this, I tear myself up thinking about this); however, on the advice of my lawyer, I've put off my job search for something better until after I have filed and my case is finished so that I can remain under the median income and file a Chapter 7. If I could travel all of the time, I could raise my salary to possible from $39K to $60K; however, due to my car accident, I can barely stand an hour ride in a car. I can't even imagine spending more than that on a flight and I can't tote around a laptop even with a briefcase on wheels. And working like that is hardly a 40 hour a week job, and the sleep disruption would definitely wreak havoc with my bipolar condition. I just feel like I'm in such a rut where illness is running my dang boring life and all I do is work, eat and sleep.

[SinkingFast]

I understand, Anon. About travel for work.

My Brother-in-Law was a very successful Sales Exec in Television Advertising. Rose thru the ranks to become Station Manager of Sales for a couple of larger market TV stations.

He developed diabetes. Type B. Isn't that the late onset one?? And now he can't travel as well. He had to change Sales type jobs. Instead of on the move every day, he travels once a month, MAYBE. With the change in job to get less travel for his health came a huge pay cut.

Diet is very important for him, and it's hard to maintain proper diet when you're traveling so much. Also, they struggled to find an exercise program for him. He has bad knees. So his doctor finally recommended Water Aerobics. That has worked wonders, but you can't find that just any place when you're traveling.

I completely understand about not changing jobs due to health reasons. You have to take care of you first, or you won't even be able to do what you do now.

[jane taylor]

Hey Anon!

I am the LAST person to slam you! We cashed in every cent of our retirement and equity in our home just trying to survive and "do the right thing." Now we are in our early 40s, have two teenagers, and have NOTHING!
It is beyond scary at times.

The thought has crossed my mind that if I lost my job, I'd just convert to a 7, sell the house and start over. I am praying of course that I keep my job (things are looking up now!) or that I get a better paying one. (I know, I know, the Trustee will take some of it, hopefully the next place I go will be the last!!)

Most people try to do their best and do what is in "good faith."

Don't beat yourself up, my friend!

I try and think about what I've gained through all of this, but some days are harder than others. We will survive.

Hang in there and hope you have a great weekend!

jane

[anonymuse]

Thanks, Jane. I know that there are a few that might pounce on me, and I didn't want that to happen. When your stumbling around trying to make ends meet, for a lot (and I think most) we aren't looking way down the road to see what we could/should do if BK ends up being the last resort. Pre-BK planning--the idea of it just makes me laugh! I couldn't take advantage of the system even if I wanted to! lol