http://financialcrisis.org/2009/06/bankruptcy/ Personal Financial Planning during a Financial Crisis Sun, 07 Aug 2011 16:14:21 +0000 hourly 1 http://wordpress.org/?v=3.3 http://financialcrisis.org/2009/06/bankruptcy/comment-page-1/#comment-134 What to do When you Lose Your Job | Financial Crisis and Personal Finance News, Articles and Tips @ FinancialCrisis.Org Thu, 26 Nov 2009 11:33:43 +0000 http://financialcrisis.org/?p=180#comment-134 [...] Don’t be tempted to ransack your 401(k) or IRA to get through this rough patch. You will be stung for taxes and penalties now, plus you will lose the tax-deferred returns you could have made. If you have 30 years to retirement, and assuming 8% annual growth, taking out $10,000 now means $109,000 less when you retire. Retirement funds are protected in bankruptcy court, so they should never be used to pay your credit card debt, which is wiped clean if you go bankrupt. [...] [...] Don’t be tempted to ransack your 401(k) or IRA to get through this rough patch. You will be stung for taxes and penalties now, plus you will lose the tax-deferred returns you could have made. If you have 30 years to retirement, and assuming 8% annual growth, taking out $10,000 now means $109,000 less when you retire. Retirement funds are protected in bankruptcy court, so they should never be used to pay your credit card debt, which is wiped clean if you go bankrupt. [...]

]]>