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.
Answers | 2
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.