FULL INTERVIEW: Financial expert talks about finding other sources of money

FULL INTERVIEW: Financial expert talks about finding other sources of money

There are some options forpeople to get money from othersources and I I wanted to talkabout which I don't think hasbeen largely talked about.

Isyou know asking a relative?yeah their money and that'sthat's kind of a.

It's tough togive advice.

Yeah, you know,but this these aren't normaltimes.

I agree you know in injust in my in my experience inthe business.

I'm in.

I've comeacross you know families thatare making loans to one anothersometimes it works out.Sometimes it doesn't work out.it can create more problemsthan it results, However, youit may be an option that'savailable to you know you mayhave a mom or a dad who may beretired and have some money putaway that they can kinda helpyou you know get to get youthrough it it.

It's again.

Itcomes down to such anindividual basisBut it is an alternative.

It isan alternative the otheralternative and I've heardabout this talk about is thelast resort from a lot of iswithdrawing from a 401 K plan.I wanna go into this in depth alittle bit sure what the rulesare and how they've changed andwhat are the options for peoplewho do have money in a 401 K.That's sitting there right now.Well, you know I've I've youknow this anybody who knows mewould say you know, I've beentelling people to stay sociallydistance from the retirementmoney you know in normal timesand again.

Underscore is notnormal times.

I think people inthis day and age you know sincethe 401 K began replacing thepension, The 401 K is reallybecome the nest egg the savingsplace for the majority ofpeople that can do it.

Sothat's really where their moneytheir money is you are allowedcurrently alyt free hardshipwithdrawal up toa hundred thousand dollars infrom your IRA.

You then have upto three years to pay the.

Onthe withdraw or you have up tothree years to return thatdistribution back into your 401K and if you do that, it'sconsidered a rollover andthere's no taxable event foryounger people that thegovernment has in placeprovision that tries to keepyou from tapping into the moneybefore it's 59 -and-a-half.they've relaxed that normallythey'll hit you with a 10percent penalty on any moneythat you take out of yourretirement plan prior to age 59and a half that's.

You don'thave to worry about the penaltyso you can go ahead and takemoney and I always advisepeople listen if you have to doit and again we go backexpenses of daily living If youneed to get that money out,take it out, but just try to bejudicious about it.

You know,don't take more than you needto reward yourself forsomething that you've gonethrough.

Take out what you needto meet your immediate needsand you can actually reducethat tax burden and I'm notmistaken by even returning athird or half of that moneywithin the field.

Whatever.

Youreturned oh and you have threeyears to pay the taxes on it oryou have three years to returnthat money and any money thatcomes back in.

It's justconsidered a rollover acontribution back into theplan.

There'll be no taxes.just say you took you took 10Grand out.

You put three backwell, the three that you putback, you won't be taxed on theseven that you've you've keptout and didn't pay taxes onyou'll pay taxes and I just putout a woman.

Lisa Why should wehave to touch our 401 K andagain we were talking aboutthis is kind of a last-ditch.It's a last resort.

It is it'sa last resort but again toLisa's point we've always knownthat you know when we retire,we'll be a pension.

Thepensions went away.

It's reallyfalling on the individual toput money into a plan and onaverage, I've seen thestatistics.

You really can'tbuild up a six -month nest eggand most people can't and thenstill find the the the 401 Kplan with the 401 K advantages.more people will opt to do thatfirst, so that really is thatyou know safe that rainingmoney fun.

That's where mostpeople haven't.

That's why it'sso attractive.

Tap into itbecause that's really wheremost