Suze Orman has me on financial lockdown
My best friend Charlie*, who lives in Minneapolis, was recently home for a visit. When he's in town, it's dangerous for both of our pocketbooks. We love to hit the local antique and secondhand stores, drink grande nonfat no-whip mochas, and get kicked out of Barnes & Noble for giggling too loudly. Seriously, we've been asked to leave. Twice.
On this particular Saturday, Charlie and I were in line at Culver's 
, our favorite Midwestern fast food joint.
"Listen," he said, pulling out his faux Dior wallet, purchased several years ago on Canal Street . "I can't spend a lot on this trip. Suze Orman has me on financial lockdown. I'm trying to buy a house. Everyone is getting homemade canned goods and embroidered dishtowels for Christmas."
Charlie has struggled with his finances for as long as I've known him – 22 years. After learning not-so-healthy spending habits from his family, he went on to make several unwise financial decisions – some that occurred as early as high school – that impacted his ability to earn a college degree, his credit score , and now, his options for purchasing a home with his partner.
In the coming weeks I'm going to tell you the story of how Charlie became "Young, Fabulous & Broke" – and how he's working to turn his situation around. Stay tuned.
* Names have been changed to protect the financially challenged.
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Comments (2)
Found in Budgeting, Debt, Financial education, Looking back, Money management, Preparing, Remember, Wells Fargo Bank
Comments
Do I have to be 70 or 70 and one have to cash in my 401k. I thought it was 70 and my brother keeps telling me it is 70 and one have
Posted by: mary | February 17, 2008 11:22 AM
mary--Your question isn't exactly on topic, but it's a good one (I'm sure Suze Orman would have a lot to say about this!).
I'm by no means an expert on 401ks, but if I understand this correctly, your 401k distributions have to start no LATER than when you’re 70 ½. On a related note, you have to be at least 59 ½ and have had the 401k for 5 years in order to withdraw from your 401k with no taxes (there are penalties before that).
I'd recommend that you ask your financial advisor about your specific situation, but I hope that sheds a little light! BTW, do you and your brother have any sort of wager going on this one? :)
Posted by: Staci Schiller | February 20, 2008 08:13 AM