Ok, I'd like to know what you guys think about this. My wife and I have about $20,000 debt (including student loans). I was considering taking half of my 401k out to pay the debt off. We would still have about $40,000 in 401k left between the both of us. This would make us debt free and also enable my wife to be a stay at home wife and not have to work.

Do you think this is a good idea? I am a firm believer that the rapture is going to happen very soon. I seriously doubt that we will be here 30 years from now to even use retirement. The wife thinks its a bad idea. She is not as much of a watcher as me so she thinks the rapture could happen years and years from now. She does want to be able to stay home as we have one child and are trying for another. Should we do it? Would you guys do it?

Josh,

I am not telling you what do to except for this: Pray about it brother! =)

With that said, I understand your willingness to pay down on your debt- I have a little more debt than you do (THanks to student loan)

I have to look at my family first and foremost- I am all about believeing the Good Lord is going to come back soon for us, but for me and in this tough economy you need to do what is best for your family.

You mentioned your wife is not a watcher- I can relate- My wife doesnt like me talking about it. I believe they will go with me in the rapture, but what if she doesnt? God said we all will be tested and our faith is what will be tested.

What good is that money that you pay your debtors to you if we have to endure the rest of the birth pangs of a financial crisis? If your asking my opinion I would hang on to it and keep your wife happy- That is another thing to consider- Keep your wife happy! =)

Eric

Josh,

It's your decision and yes indeed do pray about it, what's right for the both of you.

However, if that was my decision I'd pay off the debt and be debt free. This is the only way to do it...that's exactly what my husband and I did years ago, and soon he'll be retiring. We're debt free, and are in much better shape than many others our age. Therefore, we don't need much money to live us as our Pensions will cover our needs.

If your wife wants to stay home with your child, and have more children, it's the only way to be is debt free, with a bit of nest egg left over.

It's something you and your wife will have to decide for yourself what's right for you both.

Blessings in Christ,

Valerie

Josh, Here is my 2cents.
I would say you both need to pray together
about it until you come to a meeting of the minds, especially since you said, 'she doesn't like the idea'.

Since this is a 'no deadline' sort of decision, I
would just bring it to the Lord and then be willing
to wait until He gives you both peace, one direction or the other.

God Bless You Both,
Alleluiah

I also wanted to add that in the end it comes down
to trusting the Lord ~ even if we make mistakes ~
Amen!

As I have a business that prepares income tax..remember IF you do this..you will get hit with a 10% penalty..right off the top..and then you will have to pay taxes on the money..so if you fall in the 28% tax bracket..you will have to pay $2000 in fines and then $560 in taxes..plus state taxes...and local if you have any...

not too good of an idea...but you must make the decision..But make the decision knowing all the facts..

Sandy

Why is that? Is Josh's 401k not his to use as he pleases? Is it against the law to actually do so? Why would the government punish him for using it?

The reason for that is because 401K's are a tax deferred retirement accounts..and to make them equitable ..you cannot touch them until you are 59 1/2 years old.without paying a penalty..those are the rules you agreed to when you put your money in a tax deferred retirement account...if you take it out before what you agreed to..there is a penalty..

It is the same rules for everybody..rich or poor..

And I wrote wrong..it is $5600 not $560...just checked it..sorry

Good financial advice Sandy. The penalties and tax burden may not make robbing the 401K worthwhile. Being debt free is definitely the way to be, but taking money from a tax sheltered investment may not be the right approach. Some accounts let you borrow against it, pay off the debt and then pay yourself back with interest. When the rapture occurs the only money borrowed is from your own account.

Definitely pray about it.

Mike Caron