“Hey Derek, What Should I Do??” – Answering Your Money Questions….#2

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“Hey Derek! I’m at a crossroads and I don’t know what to do! Can you help me?!”

These are the types of emails I get each week from my long-time readers, and I absolutely LOVE it.

Today, we’ll be helping out David and Megan. Here are their questions:

“My husband and I have really been trying to get rid of our debt over the last year and a half or so and aren’t doing too bad. We’re paying off debt smallest to largest, but the big balance on the credit card is what truly makes me nervous – it’s $22k with a 10% rate. I have some money in my 403B, and was wondering if it would be smart to make a withdrawal, pay off the debt, and then put those old payments toward my retirement fund?” – Megan

“I know that you promote self-insuring whenever you can. Do you ever recommend self-insuring when it comes to life insurance?” – David

I absolutely love having smart readers. Both of these are great questions.

 

In short, Megan – I hardly ever recommend that someone withdraw money from their 401k or 403b while they’re still young. I believe that you can scrounge up the money yourself, through vigorous saving and odd jobs, over the next couple of years. For the long answer and some nifty charts and graphs, check out the video.

David, your question is awesome. I can really tell you’re thinking about saving money wherever you can, but you don’t want to be stupid about it. In short, you can self insure your life if you have 10 years’ worth of expenses saved up in a fairly accessible account. If you want to hear more about self-insuring, be sure to take a look at the video.

Thanks for the questions everyone. Keep them coming and I’ll answer them next week!

 

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2 comments to “Hey Derek, What Should I Do??” – Answering Your Money Questions….#2

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