I would like to either cash my pension out, or get a loan against it. Is that possible?

I am having a financial problem, and this is the only way I can see to solve it. I have tried applying for loans and been turned down. Any advice is appreciated.

Asked by MOMMOMMOM52

2 Answers

Log in or sign up with email
By submitting you agree to our Terms of Service
Answered by James Barath, CMPS, Certified Mortgage Planner in Crown Point, IN
Without knowing the specific details to your financial situation, nor the guidelines and provisions of your pension... you should go direct to your human resources and inquire accordingly. You may also want to call your pension plan administrator and ask them directly what are the options and criteria in order for you to take an early distribution. | 06.16.16 @ 21:12
Comment
Log in or sign up with email
By submitting you agree to our Terms of Service
$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 00:44
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi MOMMOMMOM52

You asked a similar question earlier, here is the MoneyTips link.

I also agree with James Barath.
We have some folks in this situation as well. Rather than sell you a product, we prefer to solve the underlying problem. We need to go in-depth with these financial problems. Always do what is in your best interest.

Please discuss these questions directly with us, your accountant, pension administrator and your trusted advisors.
1. What are the terms of your pension?
2. What are the tax consequences of taking a loan against your pension account?
3. With debt financing, how much debt can you afford before you are able to pay it?

The SEC and FINRA are warning investors about the risks involved in selling or buying rights to pension or settlement income streams via products like pension loans, structured settlements or secondary-market annuities.

Every situation is different. Feel free to contact us directly. We can set-up a conference with your other advisors to flesh out the details and determine your bottom line - what you are getting in return for the use of your hard earned pension $$.

It's not what you make; it's what you keep that determines your lifestyle. | 06.17.16 @ 00:51
Comment
Log in or sign up with email
By submitting you agree to our Terms of Service
$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 00:44
Log in or sign up with email
By submitting you agree to our Terms of Service
Free MoneyTips Membership!

Get FREE, full access to MoneyTips.com

Answered by

Related Questions