My in laws called today asking for advice. They are 60 and 62 and told me they only have 100k saved in a 401k for retirement. I don't think they have any other savings.
In the last couple of years they have racked up some debt. Financed a new couch, some medical bills, F150 payment, and some credit cards. They also have around 13k left on their mortgage. All in is probably 40k worth of debt.
One of them is still working, making about 40k per year and the other one is not in the best health and isn't working.
They asked me what I thought of them withdrawing 40k from their 401k and paying off everything. They said the debt burden makes it difficult to get ahead and make some much needed home repairs that have been stacking up.
I honestly don't know what to tell them and I am very worried for their future.
Also mixed into the conversation was my mother in law saying we should thank her for her not asking my wife and I for money. She has made several of these comments in the past month since she heard my wife and I paid cash for our new to us car (we are frugal, make decent livings, and avoid debt).
So two part question I guess.
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Should they use any of the 401k money to pay down debt. I hear Dave Ramsey in my ear saying absolutely not, but since they are over 60 they won't be paying a penalty.
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What level of help, if any, should my wife and I be prepared in the future to provide? I don't want to be their banker, especially when they are driving around a massive F150, but I also don't want to see them struggling.
Submitted January 07, 2018 at 08:49PM by casper108 http://ift.tt/2CQhSJP
