On Friday, I went into our bank accounts

mid-day to discover that they had all been wiped out. Every penny I had set aside for the mortgage due on the 15th, anything we had for food, medicine, gas – it was all gone. Garnishment… No notice…

We have amazing friends who have brought over food, bought my husband’s meds, and given us gas money. So, the immediate necessities of keeping body and soul together are met. But the mortgage is due on the 15th….

I have about $8K in a personal 401K (rolled over from my last job). I could take the mortgage money out of it, but there would be a 10% penalty ($265 dollars) The late fee on the mortgage payment is about that much. Should I pull it out, suck up the loss, and bail us out?

I don’t think I could pull the mortgage together by the end of the month, and I’m afraid that if I did, I would just be behind for January (late fee) and continue that vicious cycle. My husband did not get his paycheck on Friday as he was supposed to, so that made it even harder.

Ya, after BS2, contribute

the maximum they will match, then take the difference between that percentage from 15% and put that into a ROTH, so it will be tax-free growth and no taxes taken out when you take it out at retirement.

Posted in tax

Thanks everyone for the reply

I will talk to my husband and probably contribute up to the match. And no, we would never consider this for our kids college, I just want to be able to save for it as my oldest is only 7.5years away from college.

I would like people’s opinion on what Mark would recommend

I leant my TMM to my brother, so I don’t have my book and I don’t remember reading this section. My husband and I are trying to decide whether to join his company’s 401K that he is now eligible for. He is almost 41, I am 38. We are on BS2 and have 2 kids 11 and 7. I have a 401k with approx $4,000 in it which I contribute 3% since it is matched by my company. We have no savings for our kids college education. It looks like from the company information, that 3% is matched by the company. For my husband’s years of service, 50 cents on the dollar will be matched. Any suggestions would be greatly appreciated! Thanks.

I really do not know the answer

I know that my dh job matches 4.5% if you put in 6% that is the max. So we are putting in 6%. We had heard/read not sure where Dave said if it was going to take you a long time to get through bs2 and your company has a match then do it. I have no clue where I heard it but that is the way we are going with it.
Maybe it is not right but we are doing fine with it.

Will the surgery mean you can’t pay her that month’s payment?

If not, tell her to MHOB! Sorry that you are getting the run around. Can your surgery wait? Is it necessary? (I don’t know anything about fibroids.) If it can’t wait, tell her that. What does your DH think? Maybe he should talk to her.

If this is your only debt beside the house, and it sounds like it’s about $10K? then maybe you should get a loan from the bank and pay your ILs. That would not be incurring new debt, just moving around existing debt.

Good luck with your inlaws

that has to be a tough situation especially when she tells you that their debt needs to be paid back first. Dave always talks about “the borrower is slave to the lender”…and if you owe money to family, the Thanksgiving dinner tastes different. I’ve done it too…
Your responsibilty maybe to pay back the debt, but also be healthy, so if you decide to do the surgery in December or later, my prayers will go out to you either way!! God Bless you!!!

A while back I asked for advise

on how to handle a problem with a credit card company and how to pay them back. They had sent it to an attorney and the law firm was threatening to take us to court and garnish our wages. I am now beginning to think that might have been the route to go. We borrowed some money from my husband’s parents and we are paying them back 500.00 a month for the next 18 months with no interest.

We were very thankful for this opportunity and we felt blessed that we didn’t have to pay interest. Well – today I got back from the doctors and I found out that I am going to have to have surgery in December because I have really bad fibroids and I am anemic and it needs to be taken care of. I will have to take about a week off of work.

I was told by my mother in law today that I had a responsibility and a debt to pay and now wasn’t the time to take off of work. She suggested that I wait to have surgery till after my debt is paid to them and she was serious.

Other then our home this is our last debt to pay and promise that I will never borrow money from anybody again!

3 major lessons learned here!