How long can you play the chess game of moving your CC balance to a 0% account?

IMO, you should pay off the cc debt first, then whatever else you can save can go into a 529. *if* you need to, you can get some student loans, but that's a big if since the future is unknown. Chances are, if you have 2 kids, and only one income, you will probably be able to get some FA for college.

Pay off the cc debt.

Anonymous wrote:

Anonymous wrote:I just want to make sure that you and your wife are aware that--if she was a Fed and has not reached the age/years of service at which qualifying for pension payments would occur--she can reclaim all of the FERS contributions taken from her paychecks over the years.

They were taxed at the time, so it's not a taxable event.

https://www.opm.gov/retirement-center/fers-information/former-employees/

^^ and scroll down to "procedures for having your retirement contributions refunded to you."

I separated voluntarily with <5 years of service and have filed for the return of my FERS contributions.

I don't expect ever to return to federal service, but if I do, I can simply redeposit them at that time.

In your shoes, if I did this, I would pay off the CC and put anything left into the HYSA. Cash on hand is a valuable thing in these times.

We're not feds but thanks

Ugh--sorry. Agree with others here that the 529s are not a priority right now.

If I had no ongoing source of income, I would hang onto the consulting cash until interest starts accumulating on the credit card. If her consulting turns out to be a going thing, I would pay the credit card off as soon as that became clear.

I would not worry about the 529s. They are not important right now. I would pay off the cc debt. It's possible you might need to rely on the ccs for for a while and you don't want to start off carrying a huge balance. Get that down to zero.

Cut expenses as much as you can and think about ways to bring in some money. Every bit helps.

Anonymous wrote:I just want to make sure that you and your wife are aware that--if she was a Fed and has not reached the age/years of service at which qualifying for pension payments would occur--she can reclaim all of the FERS contributions taken from her paychecks over the years.

They were taxed at the time, so it's not a taxable event.

https://www.opm.gov/retirement-center/fers-information/former-employees/

^^ and scroll down to "procedures for having your retirement contributions refunded to you."

I separated voluntarily with <5 years of service and have filed for the return of my FERS contributions.

I don't expect ever to return to federal service, but if I do, I can simply redeposit them at that time.

In your shoes, if I did this, I would pay off the CC and put anything left into the HYSA. Cash on hand is a valuable thing in these times.

We're not feds but thanks

Anonymous wrote:

Anonymous wrote:Why on earth do you have credit card debt?

We only have cc debt from the month she was laid off. We thought it better to preserve cash flow at the time, especially because we thought we were both going to lose our jobs.

Ok, well I definitely agree that you should pay that off before the zero interest rate expires.

Anonymous wrote:Why on earth do you have credit card debt?

We only have cc debt from the month she was laid off. We thought it better to preserve cash flow at the time, especially because we thought we were both going to lose our jobs.

Your wife needs to get a job or you need to make more money.

I just want to make sure that you and your wife are aware that--if she was a Fed and has not reached the age/years of service at which qualifying for pension payments would occur--she can reclaim all of the FERS contributions taken from her paychecks over the years.

They were taxed at the time, so it's not a taxable event.

https://www.opm.gov/retirement-center/fers-information/former-employees/

^^ and scroll down to "procedures for having your retirement contributions refunded to you."

I separated voluntarily with <5 years of service and have filed for the return of my FERS contributions.

I don't expect ever to return to federal service, but if I do, I can simply redeposit them at that time.

In your shoes, if I did this, I would pay off the CC and put anything left into the HYSA. Cash on hand is a valuable thing in these times.

Why on earth do you have credit card debt?

Anonymous wrote:I am so sorry you are going through this. It sounds like you are doing really well. Don't worry about the 529-- now that you are down to one income your kid may qualify for financial aid. The month before interest hits, I would pay off the credit card. And yes, put the money she earns into savings.

How old are you both? How much in your retirement accounts? Please make sure you are at least getting employer match for your retirement account. Have you adjusted tax withholding? If you are withholding the same amount as last year, you might have too much withheld now that you are down to one income.

Thanks, I'm 53 and she's 46. We have about $1.5M in retirement funds. My employer contributes a small amount to retirement regardless of what the employee puts in, which is wonderful. I have adjusted tax withholding as well.

Just wanted to say that I'm thinking of all of you. I'm in foreign affairs and have USAID friends going through the same.

How about working for tips for your wife too since that will be tax free to fund the 529s?

I am so sorry you are going through this. It sounds like you are doing really well. Don't worry about the 529-- now that you are down to one income your kid may qualify for financial aid. The month before interest hits, I would pay off the credit card. And yes, put the money she earns into savings.

How old are you both? How much in your retirement accounts? Please make sure you are at least getting employer match for your retirement account. Have you adjusted tax withholding? If you are withholding the same amount as last year, you might have too much withheld now that you are down to one income.

I think I know the answer but coming here to check. We both work(ed) in the international development/USAID space. DW was laid off in late Jan, I am luckily still working and think my job is secure for the next 6-12 months. We have been able to pay the bills on my salary alone plus her unemployment by cutting back on things significantly, stopping contributions to the 529s and stopping contributions to retirement savings. We have $25k in a high yield savings account, $120,000 in investment accounts and the rest in retirement and 529s (kids are late highschool and early highschool). When my DHW lost her job we transferred our monthly credit card bill that month to a no interest card - about $12k. Not sure how long DW will be out of work but she's likely to pick up some consulting income in the next couple of months - maybe about $15k after taxes. I assume we should just plug this amount into our high yield savings account to bulk that up but would also like to get rid of that cc debt or put some money in the 529s (which are underfunded but we are expecting some help from the grandparents). WWYD?