Top Strategies for Managing Debt during a Financial CrisisWritten by Susan Oriely
To survive times of financial crisis, it is crucial to keep in mind two most important imperatives. First, don't panic; second, set your priorities.A calm thoughtful approach to your family's evaluating necessities becomes your priority in today's tough economic times. Look at your monthly income (or average monthly income) and subtract from it you fixed costs of living. Fixed costs are housing, utilities, food, auto (or other mode of transportation), clothing (necessities), insurance, child care/school, etc. DO NOT INCLUDE CREDIT CARDS. Recreation and luxuries are not necessities. Are you making enough to cover fixed costs? Are you living beyond your means?
| | The Individual 401k - BIG Business Benefits For The Home BusinessWritten by Lamaute Capital, Inc.
Major mutual fund and investment management companies now offer self employed individuals 401k plans that are easy to install and administer at very low cost. What's more independent contractors and small business owners can borrow part of their retirement savings tax-free and penalty free by taking advantage of a loan provision in these new plans. Depending on who's offering them, these individual plans are sold under different trademarked names such as (solo 401k, uni-k plan, personal(k), one person 401k, mini-401k, solo-owner 401k, etc.,.) Small business owners can establish an individual 401k and transfer their IRA, 401k, 403b, or other qualified retirement funds into this new retirement plan. Once funds are in plan, owners can borrow 50% of their 401k account balance up to $50,000 tax-free and penalty free provided they pay back loan. Any business owner with no employees other than co-owners or spouses can establish an individual 401 k plan. It doesn't matter if you are a startup or been in business for years. Your may work as an independent contractor with 1099 income, freelancer, sole proprietor, or in a partnership, Limited Liability Company (LLC), or corporation. . It is fairly common for employees of large companies to have option to borrow from their 401(k). But before 2002, small business owners were not allowed same privilege. Instead, owners needing to tap their retirement funds for whatever reasons had to take cash distributions from their IRAs or other retirement accounts. This required them to pay federal and state taxes on distributions, plus generally a 10% penalty if they were under age 59 ½. They also lost chance to put money back into their retirement accounts.
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