Whether we hate or not there could be a time when you are badly in need of money and the only option you have is the money you have is what you've been saving for when you retire. Question is would you be strong enough to avoid drawing out that money to deal with whatever issue you are facing or would you try to find another way to raise money?
If there really is no fast way to solve the problem then yes I would be brave enough to take the saving but of course not all. Then I will look for a way to replace the money after that. Life can be very hard if we don't have a retirement saving ready for when we get old.
Financial advisers contend that if you can take money from your retirement funds once you're likely to make it a habit. Each time something arises, you'll just charge over and make the withdrawal promising yourself that you'll put back the money once you get hold of it. But most of that time that doesn't happen. If you make one or more withdrawals when the time for retiring comes round you'll be one of those people who lose their minds because they have no money and there's no other way they can make it. Thankfully, virtually anyone can make on the internet so if things don't go as planned you could learn a skill and work on the net.
It depends on what the issue is really... If I had an accident and was without a car? I could probably get away with using public transportation for a month or until I could pay for the repairs. If it was a health situation for example though, I wouldn't hesitate to touch the retirement fund, I would use all of it if it was needed.
If the emergency is serious, then you need to do what you need to do. But I would highly recommend that you avoid touching your retirement funds at all costs. If you need to do it, then you will. If you don't need to, if your situation is not life threatening - then don't touch it. It could easily become a major regret when the time comes for you to retire.
Well, I don't have a retirement plan, so it's a no-brainer to me. If I did have one I would consider my options, but if I really had to I'd go for it no doubt, if I am needing it today why wait for tomorrow?
In short, yes I would tap my retirement funds. I need a roof over my head and food in my belly and I am unable to afford either one then having money in a retirement fund isn't doing me any good. While I wouldn't require an emergency to tap into my retirement funds, I wouldn't be doing it unless I had eliminated all my unnecessary spending. I think as long as the money is for a real need one can justify taking out the funds.
In a true emergency, I don't see how you would have another option. It seems like a no-brainer to me, depending on what's going on. I think it's important to make a plan to put the money back as soon as possible, though.
I don't like the idea of dipping into a retirement fund but if it truly is an emergency and I had no other choices then I would do it. Hopefully I would be in a position where I wouldn't need to take from the whole fund and could replace it.
It depends on what I really have to do, to put if frankly, if I am in a situation where I do not have to use my retirement money, I will not, but If I'm really pressed and I see no other way, why not, I'm not gonna go out there and ask for a loan, that would be defeating the purpose of retirement. The best thing to do is borrow from yourself and then build back your resources.
I would never tap into a retirement fund. There are so many tax implications it is a big lose in so many ways. Also, I think it is like breaking a seal, once you do it once, I see you would continue to do so if needed. This is one reason I think it is important to have your own savings that are not locked into any retirement accounts. People talk about it like emergency savings, but it is just really any kind of savings that can be tapped into at any point of your life for big purchases or unforeseen events. This should be money you put away in cd's, or high interest savings accounts.
It really depends on what the emergency was. I would do everything in my power to NOT touch retirement savings. I would first figure out if the emergency affected my wants or my needs. For example, if I was still able to pay the mortgage and buy food, then no I wouldn't even consider retirement funds. If it did affect those things, I would look to see if there was another way - I would call the mortgage company and see about getting a deferral for a month or two. Or maybe even put it on a credit card. That's why I think it is essential to have at least 6-8 months worth of expenses in your saving accounts (not retirement), so that if something happens, you have to funds to weather the storm, so to speak. Also, as soon as an emergency happens, you have to put the brakes on spending until the crisis is over AND you've put money back into your savings.
We all know that we're not meant to but life happens sometimes. It's a fact of life that you have to access capital sometimes, somehow. I'd rather not dip too heavily into retirement funding but sometimes you have to do what you have to do to get your life back on track, and then work hard to rebuild those funds.
The fact that there is a retirement fund or some backup plan is something positive, if we use it or not it will really depend on the severity of the situation.
This depends on the extent of the emergency and if you exhaust all your possible option. We all save for future, but who knows if we will live to see the future. If I am in a life and death situation I would not consider whether or not to draw my retirement fund. I am sure if I live I will save towards it again.
Personally, I would rather find some other ways to attend to the emergency without touching the retirement fund.
