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[paulahudson]

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[bumbershoot]

I am really sorry you lost your job and I hope you find a job quickly. I wonder why you aren't starting to look for a job immediately?


I grew up in a rather poor household and I know very small Christmases, so I know that kids can absolutely deal with very small things. They truly do not need their parents to do things like taking out 401k loans to fund presents. It sounds like you are religious, and I REALLY urge you to talk with your religious leader to see if this is really really the right thing to do. For people with beliefs (please note I am not one of them but all of my family are) there's a non-present reason for this time of year and you might consider focusing on that.

Enough of that.

As for your niece, that's a lovely thing you want to do. I wonder why you want to book it NOW and tell her NOW. Many 7 year olds are seriously unable to deal with a countdown that's nearing a full year away. I know my son counts down to his next birthday with incredible impatience starting ON his birthday, and he's one of the kids who actually CAN handle a long countdown! Other kids really can't; drives them batty and it causes them to drive their family batty as well.

I wonder if it'll be better to keep this to yourself, make plans, but not actually book anything until after you have a job and KNOW this trip will work. There just doesn't seem to be a reason to pay for it now, when you have to take out a very precarious loan, when you could book it later on. And being from a family where promises were made and then never mentioned again (my dad, not my mom, my mom was awesome), if something should happen and you could not take this promised trip? Oh it would be more devastating coming from you than it could possibly come from a mom and dad who are already unstable. I would really urge you to hold off on booking it (for your sake) and telling her (for hers).


Sorry if you didn't want to hear this. It's coming from a place of caring about you and your family and your niece, even though I don't know any of you. And also from the place that remembers very small holidays and being entirely OK with them. And we didn't even have any belief system about the holiday like you do, so your kids would probably do even better than we did. (and we did really well)



What you did want...I hope that when you do get a job that you will have a nice vacation policy that kicks in the first year and you'll be allowed to take it in the Fall of 2014.

 

[paulahudson]

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[powellrj]

So 3 weeks ago I was fired from a job of 16 yrs. Well my DISers it still hurts. I am tapping into my 401K(cause if I don't my babies won't have a Christmas). I am also gonna pull funds for a WDW trip next October-making my niece Katie's dreams come true. I took my DD & DS in March 2011, made their dreams come true. My niece has always lived with my Mom & Dad. My sister has never had her crap together. Katie's Dad wants nothing to do with her. This little girl really deserves some magic. Her lot in life has really sucked. She is 7. Her dream is to meet Ariel. I love her to pieces. She is the most giving child I know. Her bday is July 25th. I am fixing her a Disney box to suprise her. All I am asking for is prayers that nothing messes this up. God has a plan for me & I will start looking after 1st of the year-just want prayers that the new employer won't give me a hard time to be off on Fall break.

I hope you can find a new job.

 

[lost*in*cyberspace]

Good luck finding a new job.

Think long and hard about the wisdom of withdrawing funds from your 401K for something non-essential like a vacation and Christmas presents.

 

[paulahudson]

Actually drawing funds to help pay our mortgage.

 

[cjbcam]

Actually drawing funds to help pay our mortgage.

I don't know that taking a vacation if you can't pay your mortgage is a very smart idea. Unless there is extreme circumstances, like you will never be able to do it again cause of health or something. It sounds like your hearts in the right place I hope you can find a job that will let you afford that vacation.

 

[EagleScout]

As others have stated, without more details (which are obviously NOT our business), it is hard for us financial-types on this board to fully "endorse" your trip in light of what appear to be substantial financial issues, to the extent you were seeking some sort of Suze Orman "approved" validation, but it surely seems like your family has some tough times, and you seem nice and with good intent, so to the extent you are simply seeking a prayer "for the best," whatever that means, then you have it from me. Over the past months, we were double-walloped with two separate health crises in our family, and are in the process of doing followup to try to resolve them, so I also appreciate sometimes just wanting to know someone in "the world" is listening. Good luck to you, and if it is any help to have hope for your niece, my father grew up raised by his grandparents and various aunts and uncles, despite having a dad who was very much alive (the primary aunt actually being an early widow herself with two kids of her own), and he turned out great.

 

[Alesia]

You need to start looking for a job now. Every retail store on the planet is looking for temporary help right now; that will get you through until you can find something more permanent.

Trust me, I get the frustration of having to postpone a trip. Right now, I hoping to go to WDW this summer (which is already a postponed trip from last year,) but we've taken some financial hits this fall and If we take one more, a trip this year just won't be possible. It sucks, but it is what it is.

If, after just three weeks of unemployment, I was borrowing money from my 401k to pay the mortgage, there would absolutely be no trip. I know that's not what you want to hear.

 

[Peachkins]

Actually drawing funds to help pay our mortgage.

So you already have money for the trip set aside then? I'm sorry, but I would be using that money to pay your mortgage right now. Don't draw out of your 401k unless you absolutely have to- and I don't mean for an optional trip. It's nice that you want to plan a trip for your niece, but you should be concentrating on getting your regular bills paid right now. And start looking for a job now. Plan your trip once you get your new job and your income is stable.

 

[MSSANDRA]

While 7 is a great age for a trip, I absolutely would not plan a trip right now. While our family has been through some job losses in the past 20 years, we have been able to keep our retirement sacred. We know people that have not been able to do that and as they age, fear is gripping them. Choosing it to save your home is one thing, but for trips and gifts....you may want to really pray about that one. Your answer may be yes, but I would take a lot of time to listen and decide. Shop low and smart and Christmas does not have to cost a fortune.

Its a scary time. Prayers for you.

 

[disney ambassador]

I say go for it!! If it won't ruin your life than make the most of it. Life is short and you need to live every moment like it is your last but be prepared for a long life. Some of our greatest memories are our trips to Disney and they help us get through the hard times. As long as the bills can get paid, than I say no harm done. You can't take money with you to the grave.

 

[EagleScout]

I say go for it!! If it won't ruin your life than make the most of it. Life is short and you need to live every moment like it is your last but be prepared for a long life. Some of our greatest memories are our trips to Disney and they help us get through the hard times. As long as the bills can get paid, than I say no harm done. You can't take money with you to the grave.

As I mentioned before, I sincerely included a prayer for the op, but to answer your post, it clearly appears that her bills cannot get paid, to use your baseline test of whether she should go - she is making a withdrawal from her 401k to make her next mortgage payment.

 

[RitaE]

I say go for it!! If it won't ruin your life than make the most of it. Life is short and you need to live every moment like it is your last but be prepared for a long life. Some of our greatest memories are our trips to Disney and they help us get through the hard times. As long as the bills can get paid, than I say no harm done. You can't take money with you to the grave.

You can't take your money to the grave but you can take it to the Retirement Community and the Nursing Home.

 

[Luv Bunnies]

You can't take your money to the grave but you can take it to the Retirement Community and the Nursing Home.

True. You can also leave it to your kids so they, hopefully, won't have the same financial struggles.

 

[TobiasFunke]

It might be better if you just bought an ariel costume and dressed up and pretended to be ariel. It'd save a lot of money and you could possibly get a job doing it around town at birthday parties. Do you have red hair?

 

[lost*in*cyberspace]

It might be better if you just bought an ariel costume and dressed up and pretended to be ariel. It'd save a lot of money and you could possibly get a job doing it around town at birthday parties. Do you have red hair?

Seriously?

 

[Marionnette]

I wasn't very clear in my post-sorry for that. I won't tell her until next July on her bday. I am taking time to pray about where He wants me to go from here. I had a bank job and I really don't believe that is where I am meant to be. I am not taking a loan but a draw from the 401K. I have reasons which I have discussed with someone but don't think this is the place to list. Really I should not have mentioned that. I have just read so many posts and this group is very caring. Thank you for your concern.

Withdrawing from your 401K before the age of 59.5 years comes with a lot of penalties. You will owe the taxes on that money. The federal government will keep at least 20% of whatever you withdraw just to cover the taxes and early withdrawal penalty.

You will also lose all future earnings on that investment, which could amount to over $25K over 30 years assuming a very modest 6% rate of growth.

There are plenty of valid reasons for taking money out of a 401k. Taking a trip to Disney World is not one of them. If you have the money to pay for a trip but not your mortgage, you need to reallocate those funds to what's really important - keeping a roof over your kids' heads.

 

[StitchesGr8Fan]

Withdrawing from your 401K before the age of 59.5 years comes with a lot of penalties. You will owe the taxes on that money. The federal government will keep at least 20% of whatever you withdraw just to cover the taxes and early withdrawal penalty. You will also lose all future earnings on that investment, which could amount to over $25K over 30 years assuming a very modest 6% rate of growth. There are plenty of valid reasons for taking money out of a 401k. Taking a trip to Disney World is not one of them. If you have the money to pay for a trip but not your mortgage, you need to reallocate those funds to what's really important - keeping a roof over your kids' heads.

You lose closer to 40% after taxes and penalties according to the financial planners I've talked to.