Wow, sorry to hear about this!
Will be praying for you, a fellow FReeper, in this time of need.
As for financial advice, I’m not really qualified to give it...
You lose a LOT when you cash in the 401K/Retirement funds. Talk with a lawyer and an accountant before you take such steps. Sorry about the job.
I think paying off a house is a smart move.
How about drawing unemployment and looking for another job first? Sounds to me like you are going straight to the nuclear option.
Prayers. Times are terrible. My business is dead dead dead. Zero phone calls lately. Double the work for half the pay.
have you looked for other employment??? my wife was out of work for a while then boom! she got two big offers the same week....
hang in there as long as you can before foreclosure and depleting your retirement savings...any chance of selling your house??? short sale??
NOT a financial genius here, but I hear people call in to Dave Ramsay all the time with questions like this. He knows what he’s talking about and is able to walk them through the tangles. Might be worth a try. What I hear is - usually there is a better way to do it than the person has thought of.
I feel bad for you man. Don’t know what to tell you.
Houses are depressedright now in most places and arent selling well. Cashing in the 401 might not be a good idea.
If you pay off a house it does not end. You still have taxes maintenance,and other expenses.
Still if the house is dragging you down it may have to go.
I wish you all the luck in th world and hope you find new employment. God Bless You man.
If you are younger than 59, the greedy government will take its chunk out of your savings if you withdraw them, so look for other ways to get by.
Cut your cable, phone, and any other frivolous expenses. (Watch free over-the-air-TV if you must have it, and buy a Trac Phone with prepaid cards.) Increase the deductible on your car and home insurance. Use restaurant coupons and clip food coupons from your Sunday paper to stretch your money. Look up money saving tips online, and you will find many more tips from others in Obama’s vast army of unemployed.
Tell everyone you know that you need a job and will take anything for now. Now is not the time to be proud.
Jesus invites you, “Call upon Me in the day of trouble. I will deliver you, and you will glorify Me.” We will add you to our prayer list.
You'll need money for food, think Food Stamps, Unemployment funds and contact your local church and/or local government for whatever is available (food, cheese, etc.).
Clothing same as above.
As for Shelter, Mortgage companies take a very long time to get around to it. Concentrate on keeping Electricity, Water and Phone going. A free cell phone may be available so think of ditching your expensive home phone.
Attend Networking course at your Unemployment office ASAP. Networking is the key to your next job. Educational funds may be available and attending courses in or near your field can help keep your sanity.
Been there with you.
SR
If you are over 50, consult an attorney with experience in age discrimination law. File a claim for unemployment insurance tomorrow when the state office opens. Network with friends in your industry or related business to find out about openings.
Economize, but don’t ravage your retirement plan or make any radical moves with your home.
Don’t buy, rent. Just take out enough from your 401K on Dec 31 to pay the the rent each year. Also, RENT FIRST. Because when you walk away from the mortgage your credit rating goes to crap.
Might consider other options before touching those 401Ks. My brother did that and he just got hammered with taxes. Now he’s trying to finance paying for those taxes.
You’re entitled to unemployment. Use it. It’s a messed up economy.
Good luck and hope you find something soon.
I got laid off in 2009 and sold my house, got a new job, with a better living location, etc.
I’ll be praying for you. It can be done.
Sorry, FRee America52...yet another Preezy O victim...
Cash in your assets, buy bartering goods, metals, tobbacco, whiskey or pure grain alcohol....time to go Galt.
With this lawless administration, and nobody on “The Hill” willing to hold them to account, it is time to go Galt.
I might be assuming too much, as we are not aquianted...if you can tap your 401 to maintain status quo until January 20, 2013, do so.
As you are finding out, your home is a very illiquid asset that isn't easily sold to generate the funds you may need for other things. If I were in your position I would sell the home outright and rent for a while with the proceeds of the sale before even thinking of cashing out the retirement accounts.
Most important of all ... you need to slow down, step back, get advice from people who know a lot about these things, and think carefully before doing anything that could have serious unknown tax consequences later.
What kind of leasing market do you have in your area? Depending of how much you are underwater on your current home it might be make sense to lease your current home if the lease would cover much of the current mortgage payment rather than defaulting. Next step might be to rent rather than buy a smaller place while looking for another job.Do you want to exhaust all your emergency reserve in the IRA in an all cash purchase of another home? The longer you can retain your IRA as a emergency reserve while looking the better.
I’m just thankful for you that you did not lose your job at my age with my financial situation. Pay cash for a smaller house? I probably wouldn’t qualify for a small rental. I’m holding onto the home I’ve had for 25 years, just praying our corrupt politicians don’t tax me out of it. I’ll never live long enough to find another job.