Ken Dolan: Hey money is tight, Daria. Yikes! Squeaky! Squeaky type. Now let’s talk about some source—
Daria Dolan: You scared me.
Ken Dolan: I didn’t mean to scare you. I thought I saw a mouse, I’m sorry. Well in this video, I’d like to talk about some yes sources for money maybe not clearly obvious to you and some no sources.
Daria Dolan: If you need to find some money fast.
Ken Dolan: Some extra money. Do want the yeses or no’s?
Daria Dolan: I want to do—I’ll do the no’s. You know me. I love to beat people up or you’ll do the yeses.
Ken Dolan: I’ll do the yeses.
Daria Dolan: Okay.
Ken Dolan: A whole equity line of credit, here again, we don’t want you to use your house as a piggy bank but you’ve got to have at least 20% equity in your home. That’s not so easy these days, Daria and what you may want to do is get a line of credit. The home equity line of credit whether you use it or not while you’re employed especially if you think things could get tough at work so reasonably speaking, if you use it responsibly home equity a line of credit.
Daria Dolan: That would be in my no sorts but go ahead.
Ken Dolan: You give me a no. We’ll alternate. Give me a no.
Daria Dolan: All right.
Ken Dolan: Give me a no on this.
Daria Dolan: Convenience checks if your credit card company is still so dense as to send those to you.
Ken Dolan: Yeah.
Daria Dolan: They have a much higher rate of interest. It puts you more in hop to the credit card company and digs a whole deeper before even can say, I dug a hole.
Ken Dolan: Now, all right.
Daria Dolan: So don’t use those convenient checks and in fact if you still receive them in the mail, we don’t anymore so I don’t even know if they are sent anymore. Call your credit card company and say, knock it off. Those are so dangerous if they land in a wrong mailbox.
Ken Dolan: That’s absolutely right. Here’s a risky source, a real risky source but we have to discuss it, family and friends and I’m going to tell you if you think Thanksgiving and Christmas is a little tight and whacky, then in fact have somebody owe you money when they come to your house for the holidays but family and friends, it is a source of money. If your lucky enough to have family and friends. They might be able to help you out through a short period of tough times.
Daria Dolan: Okay, here’s another one, a no-no.
Ken Dolan: What?
Daria Dolan: A no source of money. Your retirement plans. Please I employ you.
Ken Dolan: Like a 401K.
Daria Dolan: Unless you about to end up on the street or you can't have an operation that’s going to save somebody’s life in your family, don’t touch your 401K money, your IRA money. Please don’t do it. It’s all you’ve got from here to retirement.
Ken Dolan: Exactly right, you’re going end at that loss of leverage and the loss of velocity of money invest the tax to others is a mess. Here’s a yes, you may want to consider selling some stocks. Now, whether you sell them in a profit or a loss, it’s almost a tax.
Daria Dolan: As long they’re not in your retirement plans.
Ken Dolan: That’s a very valid point there. I wish I’ve thought of that.
Daria Dolan: And beyond it you should be selling all of those and your mutual funds too because if you need money, you have no business being investing.
Ken Dolan: Daria, excuse me.
Daria Dolan: Sorry.
Ken Dolan: This is my yes. Thank you. Consider selling some stocks. Talk to your tax adviser for any tax ramifications. All right, give me a no.
Daria Dolan: Also, with your rough IRA’s away, alone. Even though you could remove the initial investment of the $4000.00 or $5000.00 that you originally put in after it’s been there for five years, you can't replace those withdrawals. So you’ve basically put a lot less money working tax free for you which is even worst than taking deferred money out of circulation.
Ken Dolan: Well said. You also could consider borrowing and again these are not the greatest solutions. We’re talking emergency. You may want to consider taking a look at a whole life or a permanent life insurance policy where there is a cash value build up because you can borrow that money if you need to. It’s your own money. You could borrow money but don’t forget that in fact, the death benefit while that loan is out, the death benefit that you have for yourself and your family is reduced by the amount of the loan. But that’s a yes. All right, you’ve got chance, you have one yes.
Daria Dolan: Okay, last yes. And this is going to be tough for you to do too because there aren’t a lot of people shopping anymore.
Ken Dolan: Right?
Daria Dolan: But if you have stuff that you don’t use, it’s in good condition that might be interesting to someone else, check out eBay and put it on eBay and sell that stuff and get some cash. There is a good book by the way, “Starting an eBay Business for Dummies” by Marsha Collier.
Ken Dolan: “Starting an eBay Business for Dummies.” There are some yeses, there are some no’s on off a lot of us are really heartening a few bucks can make a difference. There are some good ideas and some bad ideas.
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