2095: Should You Take a Hardship Withdrawal? By Cynthia Meyer

Optimal Finance Daily - Financial Independence and Money Advice

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Investing, Business, Education, Self-improvement

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🗓️ 10 November 2022

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

Cynthia Meyer with Financial Finesse talks about hardship withdrawals Episode 2095: Should You Take a Hardship Withdrawal? By Cynthia Meyer After years in the financial services industry, Liz Davidson became disgusted with how many people were being sold financial products and services that were not in their best interest. She decided there had to be a better way to provide people from all walks of life with truly unbiased financial guidance--designed to line their pockets, not their financial advisor’s. This is the story of Financial Finesse and how they give employees and employers unbiased financial wellness as an employee benefit. They help your employees maximize their compensation and benefits by making better financial decisions. You become a partner in their financial security and reap the benefits of a financially healthy workforce. They’ve helped hundreds of thousands of employees change their lives. The original post is located here: https://www.financialfinesse.com/2017/03/27/should-you-take-a-hardship-withdrawal/ Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily, Episode 2095.
0:04.5	Should you take a hardship withdrawal by Cynthia Meyer with FinancialFinesse.com and I'm
0:10.3	your host and personal finance enthusiast Diana Mariam.
0:14.0	We're going to get right to today's post and start optimizing your life.
0:22.8	Should you take a hardship withdrawal by Cynthia Meyer with FinancialFinesse.com?
0:29.4	If you're considering a hardship withdrawal by definition, you have a challenging time-sensitive
0:34.2	financial problem.
0:35.9	You're probably feeling very worried and anxious about your situation.
0:40.1	When money is tight, it's tempting to look to your retirement plan for resources to solve
0:44.7	the problem.
0:46.2	Under certain limited circumstances, you may be able to access funds in your 401k or
0:51.6	403b.
0:52.6	However, just because you could withdraw funds doesn't mean that you should do it.
0:58.2	A hardship withdrawal should only be used as a last resort in a truly urgent situation.
1:04.5	Why?
1:05.5	It's expensive, both now and later.
1:08.8	You'll pay income taxes on the amount you withdraw, as well as an additional 10% penalty
1:14.0	if you're under age 59.5.
1:17.0	If the withdrawal is large, it can bump you up into a higher marginal income tax rate.
1:22.4	Plus, you're taking away funds which should grow to provide income and retirement for
1:27.0	your future self.
1:29.0	Here are some questions to help you find the best choice for your situation.
	...

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