Carmen Wong Ulrich: Keep that 401k right where it is

Today Money financial expert Carmen Wong Ulrich joined us for a live Web chat Wednesday to answer your questions.

Here’s one of her answers to questions from the live chat. (See below for the full Q&A and video of Carmen’s TV appearance this morning.)

“I have two mortgages, crushing credit card and loan debt, and my daughter is starting college in the fall via subsidized, unsubsidized, PLUS loans and some scholarship. Would it be smart to use my $150k in my 401(k) to get rid of a huge chunk of this debt? I’m 53.”

“Oh John, Nooooo! Pretty please do not touch that 401k. Even in bankruptcy that money is protected. Continue to protect it. That’s your future. Plus, if you just pull the funds you will end up losing almost 1/2 to taxes and penalties. Instead, let your daughter keep on what she is doing and you can focus on your debt. Have you talked to a nonprofit credit counselor? Do that (go to NFCC.org) and see what your options are. But, promise me to keep that 401k right where it is ”

Here’s the full chat archive and Carmen’s TV appearance:

If you have a question for our TODAY Money experts, submit it here.

To sign up for an e-mail reminder for our next chat, click here.

More source:

Life Inc. - Carmen Wong Ulrich: Keep that 401k right where it is
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Submited at Wednesday, August 17th, 2011 at 8:00 pm on Finance by admin
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