"BMS" <mcfarland[at]yahoo.com> wrote in message
news:lnRod.559131$mD.225930[at]attbi_s02...
- quote -

he were much younger the annual distribution would probably not help
much.

JW

If he's 55


"jw" <jw[at]unearthly.net> wrote in message
news:saOod.2217$TG2.1198[at]trnddc01...
- quote -

"John A. Weeks III" <john[at]johnweeks.com> wrote in message
news:231120041254567501%john[at]johnweeks.com...

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Assuming he really should dip into the IRA -- why could he not apply
the Rule 72t and withdraw money and at least avoid the penalties?

Just a thought.

JW

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Excellent advice hear. Any funds drawn from a IRA would not only
be "Income Taxable", but you would also be subject to the Early
Withdrawal Penalty. Bad Idea.....
Cal Lester CLU

In article <c2e518cb.0411230744.2ebda9b5[at]posting.google.com> ,
ClanCampbell <clancampbell[at]gmail.com> wrote:

- quote -

$15K is not that much debt. That isn't even a new car worth of debt
given the price of new cars these days.

You have a few options. First, cut your spending. Second, earn
more money. You can do this by taking on a part-time job, delivering
newspapers, or delivering pizza. Next, clean out the house and sell
everything but the wife & kids. Next, make sure that your wife is
gainfully employeed. See if she can take on some extra hours at
Christmas working retail. If you can bring in an extra $250 a week
working part time, you can have the credit card stuff nailed in 15
months.

Yes, 15 months is a long time, but then again, it took you about
a year to dig this hole, so don't expect to climb out in less than
a year.

Finally, since another year has gone by, so your credit record should
be one year better than it was a year ago. Time is the key factor
in getting better credit. So, assuming that you didn't have any
late pays or any new credit issues, you should be able to go into
your bank or credit union and get a new home equity loan to replace
the bummer rate that you got last year. Do it quickly since rates
are headed north.

- quote -

No...unless you plan to die at age 65. You are going to need
something to live on in retirement. Everyone eventually has
to slow down and stop working, and you will too, someday. Unless
you want to scavange garbage cans and compete with the alley cats
at the dumpster deli, you will need that retirement savings.

In addition, you will pay hefty penalties and taxes on that money,
so you will be lucky to end up with $10K of that $20K when you
are done taking it out. This is very expensive money, and not
a good wealth-building plan.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

Long story short, I was unemployed for about a year a couple of years
back. Lots of debt later (2nd on house, credit cards, etc...) I have
managed to accumulate about $15k in revolving credit card debt. I
refinanced my home a year ago (poor credit rating did not help refi.
rate), but still find myself having a hard time making the CC payments
on time. I have little equity in house left. Interest on cards will
make it impossible to pay off in the near future. I am 37 with wife
and two kids. I live in Arizona.

What little retirement I have left (lost 2/3 or holdings between 2001
and 2003), I still have about $20k in SEP-IRA. Should I take out that
money to pay off debt or is there another suggestion?

Thanks,

CC