Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | Webster
Davis Motor Sales banner ad

Dave Says - June 8, 2014

dave says1KENTUCKY (6/8/14) — This week Dave discusses how to roll the money, how it all evens out and when to wait for it.

Dear Dave,

How should I handle my 401(k) when moving from one job to another?

Tracy

Dear Tracy,

I would roll it to an IRA. Your new company, if you move it there, will have limited choices for your 401(k). You’d also probably have a lengthy waiting period for verification and the potential add-on fees and taxes.

Plus, with an IRA you can cash it out if something really bad happens. But I rarely ever advise people to cash out their IRAs. The only exceptions are extreme cases, like to avoid bankruptcy or foreclosure. Even then, hardship withdrawals are very difficult to get. And again, this kind of thing should never be done except in an absolute, worst-case scenario.

Just roll your money into a traditional IRA, Tracy. It’s called a direct transfer IRA, and that way there will be no taxes on it. You want the money to go directly from the 401(k) to the IRA. Then, you’ll have the freedom to choose from about 8,000 mutual funds and move the money around, if you like.

In other words, you’re in control. That’s the way it should be when it comes to your money!

—Dave

Dear Dave,

We have three children, ages 15, 10 and nine. With our oldest starting high school and just being a teenager, we’re spending lots more money on her than the others. It’s almost like she’s the favorite child. Should we spend more on the other kids to make things seem a little more fair?

Julie

Dear Julie,

I don’t think so. In five or six years, it’ll be their turn and you guys will be spending that kind of money on them, too. That’s the way it is with teens.

Here’s a question for you. When the 15-year-old is 23, and you’re buying prom dresses and all the other teenage stuff for the younger kids, are you going to turn around and give the older child extra money just to “even things up”? Of course not—that would be silly. She had her moment in the sun, and now it’s their turn.

Just make sure you hug on all of them equally, and let them know you love them!

—Dave

Dear Dave,

Would it be okay to go on a tenth anniversary honeymoon while we’re working on our debt snowball?

Karen

Dear Karen,

I don’t think so. I mean, it’s not against the law or anything like that. I just don’t think it’s a good idea. I wouldn’t do it, and I wouldn’t suggest taking the trip then rolling it into your debt snowball either. I know this probably sounds mean, but I’m just not a big romantic when it comes to people who are deeply in debt.

A rare exception may be a situation where you have a really small debt snowball and a nice, fat income. But most people in your shoes have average incomes and mountains of debt. On top of that, they want to take a big celebration vacation? I would say no.

At some point you have to stop the spending and concentrate on getting your finances in order. Besides, you’ve got a lifetime together to take romantic vacations and celebrate your marriage. Just wait until you can afford something like that. Trust me, you’ll enjoy it even more!

—Dave

Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: "Financial Peace, More Than Enough," "The Total Money Makeover," "EntreLeadership and Smart Money Smart Kids." His newest best-seller, "Smart Money Smart Kids," was written with his daughter Rachel Cruze and recently debuted at No. 1 on the New York Times best-seller list. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013

In Other News...

HPD Looking for Stolen Four-Wheeler

HENDERSON, Ky. (7/29/14) — A small child's pink camouflage 4-wheeler was taken from the yard of 1128 1st Street between… Read More

Zuberer Takes Over at Quarterback for Talent-Heavy Aces

OWENSBORO, Ky. (7/28/14) — After outlasting Union County 27-26 en route to capturing the Class 2A, District 2 title,… Read More
Started 11/8/2013
Started 11/8/2013

Most Read This Week (Site-Wide)

July 28, 2014 3013

Madisonville Woman Arrested for Being a…

in Top Stories by Madisonville Police Department
July 28, 2014 2633

Madisonville Man Arrested for Endangering…

in Top Stories by Madisonville Police Department
July 25, 2014 2309

No One Injured in Truck-Train Collision

in Top Stories by Ami Clayton, SurfKY News
July 28, 2014 2156

Disagreement Over Killing Snake in House…

in Top Stories by Madisonville Police Department
July 25, 2014 1640

Business Spotlight - McQuady's Automotive

in Top Stories by Charles W. Riley II, SurfKY News

Most Read Stories from Hopkins County

July 28, 2014 3013

Madisonville Woman Arrested for Being a…

in Top Stories by Madisonville Police Department
July 28, 2014 2633

Madisonville Man Arrested for Endangering…

in Top Stories by Madisonville Police Department
July 25, 2014 2309

No One Injured in Truck-Train Collision

in Top Stories by Ami Clayton, SurfKY News
July 28, 2014 2156

Disagreement Over Killing Snake in House…

in Top Stories by Madisonville Police Department
July 28, 2014 1564

Madisonville Man Arrested for Assault,…

in Top Stories by Madisonville Police Department

Most Read Stories from Owensboro

July 28, 2014 936

Zuberer Takes Over at Quarterback for…

in News by Steve LeMaster
July 28, 2014 854

Dont Miss Out on a Howl of a Good Time

in News by Brittni Bunn
July 28, 2014 686

Instant Admissions Day is Aug. 1, 2014

in News by Bernie Hale
July 28, 2014 373

Prosecutors Mull Over Whether to Charge…

in Top Stories by Dennis Beard, SurfKY News
July 28, 2014 264

Owensboro Police Department Activity…

in Top Stories by Dennis Beard, SurfKY News

Most Read Stories from Muhlenberg County

July 25, 2014 1640

Business Spotlight - McQuady's Automotive

in Top Stories by Charles W. Riley II, SurfKY News
July 25, 2014 1430

Business Spotlight - Blue Moon Car Wash

in Top Stories by Charles W. Riley II, SurfKY News
July 28, 2014 1180

Foot Pursuit Ends with Arrest

in Top Stories by Christopher Rogers
July 25, 2014 1101

Open Mic, Bike Night Offer Good Times in…

in Top Stories by Paul McRee, SurfKY News
July 28, 2014 1092

Boys of Broad to Launch Video at Cinema 4

in Top Stories by Paul McRee, SurfKY News

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 06social 21social 22social 04social 03