Times are tough, sure enough, but if you’re pulling from your retirement now, what are you going to live on when you’re 65? With the uncertain future of social security benefits, retirement savings could be the only income we have in the coming years. That’s why it’s so important keep retirement funds untouchable.
A recent survey by Bank of America shows that 18% of respondents took an early withdrawal from their retirement funds because of the economic crisis. Of those that pulled from their funds, 25% withdrew money for credit card bills, 22% for mortgage payments, and 22% because of a job loss.
There’s another reason that to leave retirement savings alone – early withdrawal penalties. If you withdraw money from your retirement before you’re allowed, the withdrawal is taxed and subject to a 10% early withdrawal penalty. If the withdrawal comes from a SIMPLE IRA that you opened within the past two years, the penalty is 25%.
The early retirement withdrawal penalty and shortage of retirement funds aren’t worth it, especially when you have other options.
Do you have access to savings, non-retirement investments, or an emergency fund? Withdrawing money from any of these places is better than taking money out of your retirement.
Do you have valuable assets you can sell? Before you pull money from retirement, try selling some high-valued assets like jewelry or a vehicle. The profit may very well be enough to get you through the tough times leaving your retirement savings intact.
If you’ve recently been laid off through no fault of your own, you may be entitled to unemployment benefits from the government. A new law may allow you to receive up to 39 weeks of unemployment. Your state’s unemployment agency will be able to tell you whether you qualify for unemployment, the amount you’ll be able to receive, and how long you’ll receive the benefit.
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Showing posts with label unemployment benefits. Show all posts
Showing posts with label unemployment benefits. Show all posts
Friday, December 5, 2008
Tuesday, November 25, 2008
What You Need to Know About Unemployment Insurance
Reports say the unemployment rate has hit a sixteen-year high. Record numbers of people are jobless and more are being laid off every day. Earlier this month, President Bush signed a new law, The Unemployment Extension Act of 2008, which would extend the length of time for unemployment benefits.
Typically, workers are able to receive 26 weeks of unemployment. The new law could extend that time by up to 13 weeks in states with the highest unemployment rates. All other states would extend the benefit period by seven weeks. Nine states currently have unemployment rates that exceed the national average: Michigan, Rhode Island, California, South Carolina, Nevada, Illinois, Ohio, Oregon, and Florida.
Who qualifies for unemployment?
Unemployment requirements are different from one state to the next. In general, you cannot have lost your job through something you’ve done (e.g. quit, show up late, etc.) and you must be actively looking for a new job. You may be able to receive unemployment benefits in some states if you were fired or quit because of medical reasons. Your income and time on the job are also considered in determining whether you’ll receive unemployment assistance and how much you need.
How much will you receive?
Again, it varies by state, but generally you receive half of your last paycheck for 26 weeks up to a maximum of the state’s average income. In Ohio, for example, the maximum weekly benefit amount is $493. In Nevada, it’s $365.
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How to file?
Contact your state’s Unemployment Insurance agency after you’ve become unemployed. You may be able to file your claim over the phone or using the internet. You’ll typically receive your first benefit check between two and three weeks after you’ve filed your claim. You can locate contact information for your state’s Unemployment Insurance agency via the U.S. Department of Labor’s website.
Typically, workers are able to receive 26 weeks of unemployment. The new law could extend that time by up to 13 weeks in states with the highest unemployment rates. All other states would extend the benefit period by seven weeks. Nine states currently have unemployment rates that exceed the national average: Michigan, Rhode Island, California, South Carolina, Nevada, Illinois, Ohio, Oregon, and Florida.
Who qualifies for unemployment?
Unemployment requirements are different from one state to the next. In general, you cannot have lost your job through something you’ve done (e.g. quit, show up late, etc.) and you must be actively looking for a new job. You may be able to receive unemployment benefits in some states if you were fired or quit because of medical reasons. Your income and time on the job are also considered in determining whether you’ll receive unemployment assistance and how much you need.
How much will you receive?
Again, it varies by state, but generally you receive half of your last paycheck for 26 weeks up to a maximum of the state’s average income. In Ohio, for example, the maximum weekly benefit amount is $493. In Nevada, it’s $365.
Perhaps a cash advance loan could also help at this time. For more information, please click here.
How to file?
Contact your state’s Unemployment Insurance agency after you’ve become unemployed. You may be able to file your claim over the phone or using the internet. You’ll typically receive your first benefit check between two and three weeks after you’ve filed your claim. You can locate contact information for your state’s Unemployment Insurance agency via the U.S. Department of Labor’s website.
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