Comments on: Women & Money: Tips for Financial Empowerment http://www.blackenterprise.com/wealth-for-life/credit-debt/2009/01/23/women-money-tips-for-financial-empowerment-2/ Your Ultimate Source for Wealth Creation Fri, 19 Mar 2010 15:46:01 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: April McNeel http://www.blackenterprise.com/wealth-for-life/credit-debt/2009/01/23/women-money-tips-for-financial-empowerment-2/comment-page-1/#comment-20581 April McNeel Tue, 14 Jul 2009 04:05:20 +0000 http://blackenterprise.com/?p=23228#comment-20581 I have a 403B (I work for a school so there's no monthly match) worth just under $40,000. It earns very little quarterly interest, and I took out a $12,000 loan against it years ago which I currently repay through automatic deducations monthly. I have been seriously considering surrendering the annuity to eliminate ALL DEBT that I currently have ($38,000 would make me DEBT FREE), and starting over by building a retirement fund that accrues more interest. I was figuring, with no debt, I could take the money that I was using to pay minimums on credit card bills (highest interest rate is a whopping 24%)and place it in a ROTH IRA or another 403B at the annual maximum, and save to buy a house next year. Most people say this is a bad idea, but the idea of eliminating all debt and building my wealth starting immediately sounds tempting. What are your thoughts? I have a 403B (I work for a school so there's no monthly match) worth just under $40,000. It earns very little quarterly interest, and I took out a $12,000 loan against it years ago which I currently repay through automatic deducations monthly. I have been seriously considering surrendering the annuity to eliminate ALL DEBT that I currently have ($38,000 would make me DEBT FREE), and starting over by building a retirement fund that accrues more interest. I was figuring, with no debt, I could take the money that I was using to pay minimums on credit card bills (highest interest rate is a whopping 24%)and place it in a ROTH IRA or another 403B at the annual maximum, and save to buy a house next year. Most people say this is a bad idea, but the idea of eliminating all debt and building my wealth starting immediately sounds tempting. What are your thoughts?

]]> By: Harrine Freeman http://www.blackenterprise.com/wealth-for-life/credit-debt/2009/01/23/women-money-tips-for-financial-empowerment-2/comment-page-1/#comment-3747 Harrine Freeman Tue, 10 Feb 2009 02:17:14 +0000 http://blackenterprise.com/?p=23228#comment-3747 Hi Denise, thanks for your feedback. Verify what you were told by looking at the original paperwork you filed out when you signed up for your company's 401K. If you cannot find the original paperwork contact your Human Resources department and ask for a copy. If you are unable to temporarily stop making deductions to your 401K ask if you can reduce deductions payments, i.e. if you contribute $50 a paycheck reduce it to $25 a paycheck. Temporarily stopping 401K deductions or reducing contributions should only be used as a last resort after you have created a budget, reduced expenses and have stopped charging. Hi Denise, thanks for your feedback. Verify what you were told by looking at the original paperwork you filed out when you signed up for your company's 401K. If you cannot find the original paperwork contact your Human Resources department and ask for a copy.

If you are unable to temporarily stop making deductions to your 401K ask if you can reduce deductions payments, i.e. if you contribute $50 a paycheck reduce it to $25 a paycheck.

Temporarily stopping 401K deductions or reducing contributions should only be used as a last resort after you have created a budget, reduced expenses and have stopped charging.

]]> By: Denise Bethune http://www.blackenterprise.com/wealth-for-life/credit-debt/2009/01/23/women-money-tips-for-financial-empowerment-2/comment-page-1/#comment-3125 Denise Bethune Sat, 24 Jan 2009 19:34:47 +0000 http://blackenterprise.com/?p=23228#comment-3125 Question? What if you work for an organization that won't allow for this temporary stop to 401K. I work for an organization that won't even let you borrow from the 401k. But they do offer a 403b plan to the employees. Question? What if you work for an organization that won't allow for this temporary stop to 401K. I work for an organization that won't even let you borrow from the 401k. But they do offer a 403b plan to the employees.

]]> By: Denise Bethune http://www.blackenterprise.com/wealth-for-life/credit-debt/2009/01/23/women-money-tips-for-financial-empowerment-2/comment-page-1/#comment-3124 Denise Bethune Sat, 24 Jan 2009 19:32:51 +0000 http://blackenterprise.com/?p=23228#comment-3124 Temporarily reduce or stop 401K deductions was a interesting concept, and reduce tax withholding for three to six months. Temporarily reduce or stop 401K deductions was a interesting concept, and reduce tax withholding for three to six months.

]]> By: Women & Money: Tips for Financial Empowerment | BlackNewsTribune.com http://www.blackenterprise.com/wealth-for-life/credit-debt/2009/01/23/women-money-tips-for-financial-empowerment-2/comment-page-1/#comment-3073 Women & Money: Tips for Financial Empowerment | BlackNewsTribune.com Fri, 23 Jan 2009 18:11:35 +0000 http://blackenterprise.com/?p=23228#comment-3073 [...] Read full story [...] [...] Read full story [...]

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