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	<title>Comments for Ms. Morrison Speaks Money</title>
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	<link>http://msmorrisonspeaks.com</link>
	<description>We Can Do It Women!</description>
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		<title>Comment on Is It EVER OK To Borrow From My 401K? by MsMorrison</title>
		<link>http://msmorrisonspeaks.com/income-in-retirement-2/borrow-from-my-401k/comment-page-1/#comment-5355</link>
		<dc:creator>MsMorrison</dc:creator>
		<pubDate>Thu, 03 Nov 2011 21:14:02 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?p=1023#comment-5355</guid>
		<description>Congratulations on landing another job, Shawn!  IF you are now living well within your means, especially with your new lower salary, I could see the advantage to paying for the roof and perhaps paying off some or all of your credit cards with a 401(k) loan, The rule is that one can borrow &lt;strong&gt;the lesser of &lt;/strong&gt;$50,000 or one-half of your retirement plan balance, $50,000 in your case.  

You would have to transfer the 401(k) from your former employer to your current employer&#039;s 401(k) plan in order for the new employer to withhold the correct repayment amount from your current paycheck.  Realize too, that SHOULD you leave your current employer with an outstanding 401(k) loan, you would be required to repay the loan, or if you could not, the outstanding loan amount would be deemed a distribution, and taxed to you in your current tax bracket, and you would also have to pay an early withdrawal penalty of 10% if you are under age 59 1/2.  

HOWEVER be advised that 401(k) loans for purposes-other-than-the-purchase-of-a-new-home, are amortized over a 5 year period, and repayments are deducted directly from your paycheck.  I love the fact that the loan &lt;strong&gt;will get&lt;/strong&gt; repaid, automatically from your paycheck, AND that the interest rate you are paying is credited right back into your account.
Depending on the interest rate charged however, this monthly repayment amount could be sizable.  For example, a $17,000 loan over 5 years at 5% interest equates to a $320.81 monthly repayment deduction from your paycheck that automatically gets deposited into your 401(k) account.  The same $17,000 loan at 4% equates to $313.08 per month.  Add the cost of the roof repair atop that credit card loan amount and if you cannot afford the repayment schedule, given that the loan amortization period is a short 5 years, then work backwards to determine how much you can afford as a monthly repayment, and borrow that amount.  
Your credit card debt is generally amortized over a much longer period than 5 years, hence the low minimum payment thereon.  
If you have established a Home Equity Line of credit--with your house value as collateral--I may suggest that you utilize that line of credit for either the roof repairs OR the repayment of credit card debt, since the amortization of a Home Equity Line is generally 15 or 20 years, resulting in a lower payment.  Remember, you can always send in extra principal payments any month as well to reduce the overall interest you are paying.  In the case of borrowing from a Home Equity Line, one can generally tax-deduct the interest paid on amounts borrowed up to $100,000, so in this way, you convert the interest you are paying on the credit cards to tax-deductible interest, which is favorable to non-tax-deductible interest.
So, figure our what you can afford to pay each month towards the loan repayment and possibly utilize both of these seemingly available sources--401(k) loan and/or Home Equity Loan.
Good luck Shawn, and write back if you have further questions!</description>
		<content:encoded><![CDATA[<p>Congratulations on landing another job, Shawn!  IF you are now living well within your means, especially with your new lower salary, I could see the advantage to paying for the roof and perhaps paying off some or all of your credit cards with a 401(k) loan, The rule is that one can borrow <strong>the lesser of </strong>$50,000 or one-half of your retirement plan balance, $50,000 in your case.  </p>
<p>You would have to transfer the 401(k) from your former employer to your current employer&#8217;s 401(k) plan in order for the new employer to withhold the correct repayment amount from your current paycheck.  Realize too, that SHOULD you leave your current employer with an outstanding 401(k) loan, you would be required to repay the loan, or if you could not, the outstanding loan amount would be deemed a distribution, and taxed to you in your current tax bracket, and you would also have to pay an early withdrawal penalty of 10% if you are under age 59 1/2.  </p>
<p>HOWEVER be advised that 401(k) loans for purposes-other-than-the-purchase-of-a-new-home, are amortized over a 5 year period, and repayments are deducted directly from your paycheck.  I love the fact that the loan <strong>will get</strong> repaid, automatically from your paycheck, AND that the interest rate you are paying is credited right back into your account.<br />
Depending on the interest rate charged however, this monthly repayment amount could be sizable.  For example, a $17,000 loan over 5 years at 5% interest equates to a $320.81 monthly repayment deduction from your paycheck that automatically gets deposited into your 401(k) account.  The same $17,000 loan at 4% equates to $313.08 per month.  Add the cost of the roof repair atop that credit card loan amount and if you cannot afford the repayment schedule, given that the loan amortization period is a short 5 years, then work backwards to determine how much you can afford as a monthly repayment, and borrow that amount.<br />
Your credit card debt is generally amortized over a much longer period than 5 years, hence the low minimum payment thereon.<br />
If you have established a Home Equity Line of credit&#8211;with your house value as collateral&#8211;I may suggest that you utilize that line of credit for either the roof repairs OR the repayment of credit card debt, since the amortization of a Home Equity Line is generally 15 or 20 years, resulting in a lower payment.  Remember, you can always send in extra principal payments any month as well to reduce the overall interest you are paying.  In the case of borrowing from a Home Equity Line, one can generally tax-deduct the interest paid on amounts borrowed up to $100,000, so in this way, you convert the interest you are paying on the credit cards to tax-deductible interest, which is favorable to non-tax-deductible interest.<br />
So, figure our what you can afford to pay each month towards the loan repayment and possibly utilize both of these seemingly available sources&#8211;401(k) loan and/or Home Equity Loan.<br />
Good luck Shawn, and write back if you have further questions!</p>
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		<title>Comment on Compound Interest by Betty</title>
		<link>http://msmorrisonspeaks.com/ask-the-expert/compound-interest/comment-page-1/#comment-5347</link>
		<dc:creator>Betty</dc:creator>
		<pubDate>Fri, 21 Oct 2011 04:11:07 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?page_id=1392#comment-5347</guid>
		<description>Yes indeed, banks will have each of the compound rates available and posted:
Daily
Monthly
Annually 
at least, and often times more time periods than that as well.  If it is not posted, ask your bank for this information.
God Speed.</description>
		<content:encoded><![CDATA[<p>Yes indeed, banks will have each of the compound rates available and posted:<br />
Daily<br />
Monthly<br />
Annually<br />
at least, and often times more time periods than that as well.  If it is not posted, ask your bank for this information.<br />
God Speed.</p>
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		<title>Comment on Is It EVER OK To Borrow From My 401K? by shawn fath</title>
		<link>http://msmorrisonspeaks.com/income-in-retirement-2/borrow-from-my-401k/comment-page-1/#comment-5345</link>
		<dc:creator>shawn fath</dc:creator>
		<pubDate>Tue, 18 Oct 2011 16:36:08 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?p=1023#comment-5345</guid>
		<description>So I need my roof replaced. I have $160,000.00 in my 401k $23,000.00 of it is not in any stocks or bonds. I was out of work for 6 months got a new job making half of what I did before. Can I barrow Money for my roof I also owe $17k in credit cards can I barrow to pay them off?</description>
		<content:encoded><![CDATA[<p>So I need my roof replaced. I have $160,000.00 in my 401k $23,000.00 of it is not in any stocks or bonds. I was out of work for 6 months got a new job making half of what I did before. Can I barrow Money for my roof I also owe $17k in credit cards can I barrow to pay them off?</p>
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		<title>Comment on Compound Interest by Dotty</title>
		<link>http://msmorrisonspeaks.com/ask-the-expert/compound-interest/comment-page-1/#comment-5344</link>
		<dc:creator>Dotty</dc:creator>
		<pubDate>Tue, 18 Oct 2011 15:55:18 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?page_id=1392#comment-5344</guid>
		<description>Can these compounding accounts be found at any bank?  Do they have a special name so we know what to look for?</description>
		<content:encoded><![CDATA[<p>Can these compounding accounts be found at any bank?  Do they have a special name so we know what to look for?</p>
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		<title>Comment on March Green Money Tip &#8211; Reduce How Much You Use Your Car by MsMorrison</title>
		<link>http://msmorrisonspeaks.com/green-money-tip/green-money-tip-3/comment-page-1/#comment-5333</link>
		<dc:creator>MsMorrison</dc:creator>
		<pubDate>Fri, 07 Oct 2011 15:50:14 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?p=1107#comment-5333</guid>
		<description>Yes Jeanette,
We too often miss wonderful opportunities right within our reach, that indeed can add JOY to our lives!  Thanks for sharing.</description>
		<content:encoded><![CDATA[<p>Yes Jeanette,<br />
We too often miss wonderful opportunities right within our reach, that indeed can add JOY to our lives!  Thanks for sharing.</p>
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		<title>Comment on Did Hurricane Irene Meet The Media&#8217;s Hyped Expectations? by MsMorrison</title>
		<link>http://msmorrisonspeaks.com/investing-for-beginners/did-hurricane-irene-meet-the-medias-hyped-expectations/comment-page-1/#comment-5332</link>
		<dc:creator>MsMorrison</dc:creator>
		<pubDate>Fri, 07 Oct 2011 15:46:24 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?p=1328#comment-5332</guid>
		<description>Wise woman, Dotty!!  Couldn&#039;t agree more.</description>
		<content:encoded><![CDATA[<p>Wise woman, Dotty!!  Couldn&#8217;t agree more.</p>
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		<title>Comment on Betty Ford&#8217;s Tremendous Wealth by MsMorrison</title>
		<link>http://msmorrisonspeaks.com/what-is-wealth/betty-fords-tremendous-wealth/comment-page-1/#comment-5331</link>
		<dc:creator>MsMorrison</dc:creator>
		<pubDate>Fri, 07 Oct 2011 15:45:22 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?p=1282#comment-5331</guid>
		<description>I haven&#039;t heard about any such funds, unfortunately.  Good luck!</description>
		<content:encoded><![CDATA[<p>I haven&#8217;t heard about any such funds, unfortunately.  Good luck!</p>
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		<title>Comment on Betty Ford&#8217;s Tremendous Wealth by Bobbie Flores</title>
		<link>http://msmorrisonspeaks.com/what-is-wealth/betty-fords-tremendous-wealth/comment-page-1/#comment-5315</link>
		<dc:creator>Bobbie Flores</dc:creator>
		<pubDate>Mon, 26 Sep 2011 06:37:29 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?p=1282#comment-5315</guid>
		<description>I heard that as a tax payer you could get some money from Betty Ford to help you if you have children.  Is this a true statement?</description>
		<content:encoded><![CDATA[<p>I heard that as a tax payer you could get some money from Betty Ford to help you if you have children.  Is this a true statement?</p>
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		<title>Comment on Did Hurricane Irene Meet The Media&#8217;s Hyped Expectations? by Dotty Scott</title>
		<link>http://msmorrisonspeaks.com/investing-for-beginners/did-hurricane-irene-meet-the-medias-hyped-expectations/comment-page-1/#comment-5312</link>
		<dc:creator>Dotty Scott</dc:creator>
		<pubDate>Fri, 02 Sep 2011 18:51:41 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?p=1328#comment-5312</guid>
		<description>I gave up on the Media back at 911.  I appreciate hearing a news story once - and that is it.  I no longer watch the news at all.  Life is much better that way.  When I need to know something I will look it up on the Internet and use my own judgment - not buy into hype.</description>
		<content:encoded><![CDATA[<p>I gave up on the Media back at 911.  I appreciate hearing a news story once &#8211; and that is it.  I no longer watch the news at all.  Life is much better that way.  When I need to know something I will look it up on the Internet and use my own judgment &#8211; not buy into hype.</p>
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		<title>Comment on Aurora Winters &#8211; &#8216;Struggling And Soaring With Angels: Healing A Broken Heart&#8217; by Widowed, What's Next? No Financial Decisions For A Year, if possible! &#124; Ms. Morrison Speaks Money</title>
		<link>http://msmorrisonspeaks.com/widowed/aurora-winters/comment-page-1/#comment-5308</link>
		<dc:creator>Widowed, What's Next? No Financial Decisions For A Year, if possible! &#124; Ms. Morrison Speaks Money</dc:creator>
		<pubDate>Tue, 19 Jul 2011 14:49:47 +0000</pubDate>
		<guid isPermaLink="false">http://msmorrisonspeaks.com/?p=1293#comment-5308</guid>
		<description>[...] I interviewed Aurora Winter of the Grief Coach Academy who reiterated a piece of wisdom I&#8217;ve long shared with clients of mine.  She then went on to [...]</description>
		<content:encoded><![CDATA[<p>[...] I interviewed Aurora Winter of the Grief Coach Academy who reiterated a piece of wisdom I&#8217;ve long shared with clients of mine.  She then went on to [...]</p>
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