HELP SAHM's! I have a finiancial question!

[ggeorgiagirl]

Hello to anyone who is kind enough to read this!!!

This is my first year as a stay at home mom I know that money is tight for everyone who does this so you can probably understand!

My question: Have any of you ever taken money out of your Tax Sheltered Annuity? Can you even do this? How much do they charge? I know that there are some types of reasons that you can withdraw (i.e. Medical Bills). Is there any way that you can take the money out without them charging an early withdrawl fee...since I am no longer employed??!! Does this question even make sense? Basically, I would like to withdraw some of my $$ (maybe even all...it's not much anyway). Can any one give me advice?

HUGS and KISSES

Beth

 

[Mouse House Mama]

Honestly as a SAHM I have to tell you that I would never touch anything like that. It may not be much but let's say that you do have a realy emergency? At least it is there, and since it has been put away for I assume retirement I would just leave it alone. Unless you are destitute and can't put food on the table I wouldn't touch it. I know that may sound crazy but that's how I feel. If you are new to being a SAHM just know that the budgeting gets easier and you'd be surprised at how you can stretch a dollar! Check out the Budget Board for some great ideas. I am often surprised by how much I can save without having any impact on my family. Congratulations on your first year home!

 

[Darcy03231]

A lot depends on how the plan was written. Most plans let you withdraw the money once you no longer work there. Keep in mind if you take the money out you will pay a 10% penalty unless you're taking it out for one of the approved reasons, ie first home, college expeses, etc., and you have to pay taxes on it at your current tax rate. If you have $10,000.00 in it you'd pay a penalty of $1,000.00 and if you're in the 28% tax bracket you'd pay $2,800.00 in taxes. Now your $10,000.00 will net you $6,200.00. If you take it out and roll it into an IRA or other retirement plan you won't pay the penalty and you'll be taxed at the rate you're at when you take it out. Most people find their tax rate drops at retirement due to lower income, so you'll lose less to taxes.

 

[pperfectmom]

I'm a SAHM with a couple of dinky part-time jobs. I quit my job 2 years ago when DS was born and collected all my retirement against a lot of advice. I also took a penalty and collected on my 401K. I know it goes against common advice, but sometimes you have to do something anyway. If you do, don't feel bad about it. Doing this allowed me to stay home over a year without any extra income at all so it was worth it to me.

 

[ILMICKEY]

Hi,
My husband and I use our income tax refunds. If you budget wisely $3000 can go far. Start making and selling crafts, or have a garage sale. All that money will add up. Or babysit for other kids, even a few hours a week will eventually add up!!

Good luck!

 

[NemoMOm]

I know this doesn't answer your question, but I thought you might like this. There is a website called wahm.com (work-at-home-moms). If you go to the forums you can find some really good jobs that you can work from at home. Be careful of scams, your best bet is to read some of what the other moms do and like. You can make anwhere from 7-15$ hr and make your own schedule (like when the kids are asleep ) Good Luck

 

[camdensmom]

I was a SAHM for the 1st year and returned to the classroom this past September. I would not borrow the money. Like others have said you may REALLY need it at some point.

Start by writing down EVERY penny that gets spent in a month. Take a real good look at that and see how you might cut back. Then take a good look at the big picture and see if there are other ways to live within your means (trading in a car, skipping vacations, etc.)

It can be very frustrating being at home, but there are so many great ways to make and save money. Hang in there.

 

[mom2taylorandemily]

Don't touch it unless it is an extreme emergency, which does happen. I was a SAHM for 7 years and actually I am now, but I substitute teach at their school, so I am still with my girls every day or I am at home. Try other things, like getting rid of cable, go to a dial up internet service, don't eat out and eat more meals at home. Have you DH take lunch to work instead of eating out with colleagues, if possible. All these add up, it can be done.