Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am the father of 6 young kids and have a wife who is about to start nursing school and doesnt work. I lost my job about a month ago and its looking like I could be out of work for a while. Even with unemployment funds we will come up about a grand a month short of making ends meet, though we do have some savings (about 6 grand) to help out. We also have college and mutual funds. At what point should we be thinking about pulling them out? If we pull them out now, we'll have to pay a penalty but OTOH we have the money in our hands if we need it and there is no risk of them going down even further in value. If we leave the money in, we risk them losing more money and then if we need it for later, the money is gone.
I am the father of 6 young kids and have a wife who is about to start nursing school and doesnt work. I lost my job about a month ago and its looking like I could be out of work for a while. Even with unemployment funds we will come up about a grand a month short of making ends meet, though we do have some savings (about 6 grand) to help out. We also have college and mutual funds. At what point should we be thinking about pulling them out? If we pull them out now, we'll have to pay a penalty but OTOH we have the money in our hands if we need it and there is no risk of them going down even further in value. If we leave the money in, we risk them losing more money and then if we need it for later, the money is gone.
What would you do if you were in my shoes?
Thanks
Well, I don't have any children, so I am not faced with the same emotional and responsibility hurdles you are currently faced with. Having said that, I have cashed in my mutual funds twice, and both of them were to move across country. Fast forward ten years, the money was never replaced and that savings is irretrievably gone.
My sister and her husband have a very nice home near D.C. and they just got a refinance at 4.5 percent. That would be the best way to go. This was not one of those variable refinances.
The obvious answer is to have your either you or your wife work part-time. Unemployment allows you to work around 1/3 of your benefits, without losing any of your benefits. If you could bring in 150 a week, that would close your short-gap. But obvious you would need to be able to bike to work and not use gas, bring your lunch, etc.. This could be a personal assistant, walking dogs, etc...
But getting back to your original question. I would not cash in those mutual funds. But I would move them to conservative stocks or money market funds or bond funds. That way, you will not lose money and the money is there if your children are starving or you can't pay your mortgage.
Don't try to pull your money until it's absolutely necessary. In the meantime, check the withdrawal information. It could be that you would be eligible for a hardship withdrawal that would eliminate penalties.
It might not be the best time for your wife to start school. If you aren't going to work then she needs to, you need $1000 a month. You can also reduce expenses by $1000. I wouldn't pull money out of savings at this point...you have other options.
That's true about nursing school. I trust it's a two-year program, as fast as possible? Community college?
If I had to tap my retirement money (as I've considered), I'd take it out piecemeal, as little as possible at a time, to lessen the immediate tax/penalty hit. It would also help keep my mind focused on paring spending down to the absolute bone, and/or finding part time work, anything, but having to take out that money and take the hit.
I don't know how college accounts work with taxes and penalties, but I'd consider hitting them first in the same slow way. You can get loans for college later, but you can't borrow for retirement. And with six kids... college isn't the be-all and end-all for everyone, and with six kids, financial aid would likely be available at least somewhat.
I do agree that your wife soldiering on through RN school is the wisest move for her. Her new income is within sight then, and so is shift work, overtime, etc. Even two jobs. I've seen plenty of people make it work, although with a bit fewer than six kids.
Good luck. This economy is hurting so many people in so many ways.
No, don't do that...a nuring degree is worth its wait in gold. But it is not for everyone. You must have a very strong personality, not easily hurt, have tough skin. One of my family has one, but is unable to work, because they can't deal with the long hours, high stress, etc.. So has degree, but can't keep a job.
But your wife definitely could work part-time as a care worker - 10 hours per week or even as work study, through her school.
Again good luck!
No, don't do that...a nuring degree is worth its wait in gold.
You are talking to a family here who is going to be on the streets in 6 months if they don't do anything. The mother has got to get a job and fast!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A thought
