Ask Experts Questions for FREE Help !
Ask
    adamsgirl's Avatar
    adamsgirl Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 25, 2011, 06:05 PM
    Does it make sense for me to cash out my 401k to avoid bankruptcy?
    Our family business has not fared well over the last few years, and our savings are completely gone. I am a stay-at-home mom, but have a significant amount built up in my 401k from when I was working. If I cash it out, we will have enough money to live on for a year. Therefore, the salary my husband takes from his small manufacturing business could be instead used to pay vendors, etc, and avoid bankruptcy. I know the penalties on early withdrawal from 401k are severe, but am wondering if it's worth it to take the hit to avoid bankrupting the business and the resulting negative impact on our credit score. Many thanks in advance for your advice.
    Wondergirl's Avatar
    Wondergirl Posts: 39,354, Reputation: 5431
    Jobs & Parenting Expert
    		  
    #2

    Feb 25, 2011, 06:10 PM

    I would not mess with a 401(k). I retired recently and realize now how important they are.

    How old are you and your husband? Can the family business survive and become a success, or is it a losing proposition?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Does this make sense? [ 1 Answers ]

Hello, I am writing a report to an audit committee, and I think I am having an off day, nothing I write makes sense! Ok so I will write the sentence I currently am having an issue with, and go from there. If you need more info just let me know. "The Municipality’s staff have put a large...

Trying to Make Sense of It all [ 112 Answers ]

So here I sit at work - browsing the Internet for a definitive answer, but I have come to realize there is no definitive answer to my question. Here is the background: All is fine and well in my life - great boyfriend of 4 years, great family and a few great friends (which I have done on...

Filing bankruptcy to avoid home foreclosure [ 1 Answers ]

I am recently divorced and got ownership of our home - equity in the home is about $10,000. I have about $50,000 in personal loans and credit card debt - amassed within the last couple years. I have a paid-for car worth about $5,000. I cannot make my house note with all these bills. If I file for...

Does this make sense to anyone. [ 13 Answers ]

This confuses me, so maybe I should stop thinking about it... Maybe someone can understand it... How can someone tell you things such as "I still have very strong feelings for you", "I am miserable constantly becuase your gone now", "I know im making a mistake by leaving you" and "I still think...

It doesn't make sense [ 4 Answers ]

Our home was remodeled in 1968, at that tome there was a garage under the house, which we closed off and made into a basement. I have no idea how the drains were done. Now, after all these years our basements has water backing up from the drains ( Not the ones for sewage, thank God. What should be...

View more questions Search