Speaker 1: Now is.
Speaker 2: The b a q wa the b a q a.
Speaker 1: I always forget the rhythm b A b a A
Speaker 1: the b a b q Oh maybe the seconds, sir,
Speaker 1: the b a q a. Okay, the b a q
Speaker 1: a anything.
Speaker 3: I'm basically likes apprentice right now.
Speaker 1: So we are here for b a q a, which
Speaker 1: means which means you, as Brianna Bische listener, you get
Speaker 1: ta ask your questions and Mandy and I get.
Speaker 2: To answer it.
Speaker 1: Not in an expertise type of way, in a girlfriend,
Speaker 1: hey girl, Hey ask somebody else additionally, who you are
Speaker 1: paying for their advice kind of way.
Speaker 2: Take it with a grain of salt, don't sue us
Speaker 2: kind of way.
Speaker 3: Like say, soomtie, who is listening to your phone conversation
Speaker 3: on the train and giving you unsolicited advice kind of way.
Speaker 1: Yes, But like at the end of the day, you
Speaker 1: got to be grown and you know, seek out professional advice.
Speaker 2: All right, So I'm a bad advice one.
Speaker 1: Okay. So Hi, my name is C, and I want
Speaker 1: to thank you for all the great advice that you give.
Speaker 1: C's question is what Tod be wise to withdraw from
Speaker 1: my four one K to pay off my credit cards?
Speaker 1: I was laid off over a year ago and finally
Speaker 1: started working again in March twenty twenty one. Because I
Speaker 1: was laid off, I racked up about eleven thousand dollars
Speaker 1: in credit card debt.
Speaker 2: I'm forty six and I'm.
Speaker 1: Really trying to be debt free by fifty minus the mortgage.
Speaker 1: My four one K is currently at two hundred and
Speaker 1: fifty K one thousand dollars for my last employer, A
Speaker 1: great job. I haven't rolled it over to my new
Speaker 1: employer yet, and I'm contributing to my new employers awesome.
Speaker 1: I'm trying not to depend on credit cards cash only,
Speaker 1: but last year stuck it did.
Speaker 2: See.
Speaker 1: Any advice will gladly be appreciated, and I know I'll
Speaker 1: have to pay a bunch of taxes.
Speaker 2: Thanks love y'all. Well, look as he already knows something
Speaker 2: what we was gonna say.
Speaker 3: Yeah, see, okay, what I was gonna say? Yeah, ah,
Speaker 3: you were I was because she has so much.
Speaker 2: In her four to one K already.
Speaker 3: I just feel like she's in a really good spot.
Speaker 3: But I also think eleven thousand dollars in the grand
Speaker 3: scheme of things, isn't a ton. And here's what I
Speaker 3: was gonna say, though, a withdrawal is different than what
Speaker 3: I was thinking. I was going to ask if you're
Speaker 3: eligible for a four to one K loan, because with
Speaker 3: a four to one K loan you do get the
Speaker 3: lump sum. And I have done this before for about
Speaker 3: the same amount of money. When we are doing a
Speaker 3: part of our renovation, we basically rain out of money
Speaker 3: toward the end of our initial renovation, rain out of
Speaker 3: cash money. And I did end up taking a ten
Speaker 3: thousand dollars four one K loan. And what I liked
Speaker 3: about that was my employer allowed me to do that,
Speaker 3: and I did pay some interest, but you pay it
Speaker 3: back to yourself and then I would just have my
Speaker 3: payments taken out of my paycheck starting from whenever you
Speaker 3: take out alone, and then it's not considered Yeah, and
Speaker 3: then it's not really a withdrawal where you have to
Speaker 3: pay the early withdrawal penalty plus taxes because it'll be
Speaker 3: considered a distribution with the traditional for one K. And
Speaker 3: my second thought was, is it a wroth because if.
Speaker 2: You have a row, like it, but explain the difference.
Speaker 3: Yeah, if you have a wroth, because with the wroth
Speaker 3: for a one K or a roth. I array you're
Speaker 3: putting in money after taxes are taken out, you can
Speaker 3: actually withdraw your contributions any old time. I believe you
Speaker 3: with just the contribution, not the growth though, but the contributions,
Speaker 3: not the gains. And I honestly think to have been
Speaker 3: unemployed for over a year, I don't think, you know,
Speaker 3: having just kind of left a place where I was
Speaker 3: getting paid steadily and you know, standing up my business,
Speaker 3: but then really living off of my emergency savings. I
Speaker 3: can see how quickly that could run out, especially over
Speaker 3: a year. And that was what was so devastating with
Speaker 3: the pandemic was you know, you say three to six
Speaker 3: months living expenses, saving your emergency fund, and then a
Speaker 3: pandemic is like, we're going to take away life for
Speaker 3: two years, and it's just too it's just too much.
Speaker 3: So I see how this happened. And I think the
Speaker 3: fact that you've you know, gotten new employment shows that
Speaker 3: you know, you are relatively stable professionally, so maybe you'll
Speaker 3: be working for a while. The one little caveat with
Speaker 3: a four to one k loan even is if you
Speaker 3: were to leave your job or they were to let
Speaker 3: you go, you could owe that money back. Pretty soon.
Speaker 3: I forget exactly the time window, but within a few
Speaker 3: months typically, So that's just something to consider as well.
Speaker 1: Now here's the thing. So I agree with me at first,
Speaker 1: I because say, Manny, we don't agree, but I just
Speaker 1: missed it up.
Speaker 2: For a while.
Speaker 1: I was like what because one, this is how she
Speaker 1: almost had me tricked. Because one, you know, especially at
Speaker 1: forty six, you know, overtirement's not that far off.
Speaker 2: So actually making a withdrawal is not something that I.
Speaker 1: Would want for you, because we want to make sure
Speaker 1: I like to call my old lady self, Wanda. We
Speaker 1: want to make sure that your retired self is being
Speaker 1: looked after. And you know, it's like I said, it's
Speaker 1: not around the corner, around the corner, but it's not too.
Speaker 2: Far down the road.
Speaker 1: So I wouldn't want you to make a withdrawal because
Speaker 1: you wouldn't really be withdrawing eleven thousand dollars. You have
Speaker 1: to withdraw more than that to really cover you know
Speaker 1: what you what your what your credit card debt is.
Speaker 2: Plus on top of that, you.
Speaker 1: Would miss out on the potential gains at that money
Speaker 1: that you're pulling out. You know, that would would be
Speaker 1: earning and it's a critical time right now for you
Speaker 1: to have those earnings. But to Mandy's point, taking out
Speaker 1: a loan from your four one k actually sounds better now.
Speaker 1: The only thing is this is the part that's a
Speaker 1: little trick ad that it's not my expertise, But her
Speaker 1: money is technically still with her old employer, So it's like,
Speaker 1: how do you take a loan? Because she's at a
Speaker 1: new employer now, so you would want to look into
Speaker 1: what does that look like? Are you rolling over to
Speaker 1: an external account or are you rolling over to your
Speaker 1: current employer's you know, like account. So that's where so
Speaker 1: I agree with Manny that yes, you know, taking on
Speaker 1: a loan is your better bet. But because you're kind
Speaker 1: of like in between, you'd have to ask you know,
Speaker 1: like HR or you'd have to ask your benefits department.
Speaker 1: What does that look like if I'm taking that a
Speaker 1: loan against this money? You know, do I take out
Speaker 1: a loan and keep it where it is?
Speaker 2: Do I roll it over? Then take that a loan?
Speaker 1: That would be like the only kind of like component
Speaker 1: that you want to get some additional information on. But honestly,
Speaker 1: you're rocking out two hundred and fifty thousand dollars set
Speaker 1: aside for your old lady's self.
Speaker 2: Great cee, you.
Speaker 1: Know, eleven thousand dollars in credit card debt after all
Speaker 1: of those shenanigans. Honestly, I ain't even mad at you,
Speaker 1: and I love the fact that you were cognizant that,
Speaker 1: like I know, I'm going to have to pay a
Speaker 1: bunch of taxes, you're not because we don't look at
Speaker 1: it loan.
Speaker 2: Okay.
Speaker 3: See, I'm so glad that you made that point, because
Speaker 3: you're right, I overlook that part, the fact that she's
Speaker 3: in between. So definitely I agree with you, Tiffany, look
Speaker 3: into the fine print whether you want to roll it
Speaker 3: over into a I don't know if if you roll
Speaker 3: it over into a brokerage account of your own, do
Speaker 3: they offer loans. I don't know exactly, and to look
Speaker 3: into that, but yeah, I love a question that makes
Speaker 3: me think really hard. Well, let's play pretend for a
Speaker 3: minute and pretend like she doesn't have a loan option.
Speaker 3: She only has the withdrawal option. So let's go back
Speaker 3: to the idea of it is a regular withdrawal, she
Speaker 3: would have to pay early withdrawal taxes and a penalty.
Speaker 3: Your point about having to take out more than eleven
Speaker 3: thousand dollars is really important because let's say your tax
Speaker 3: rate is twenty five percent, you almost need to add
Speaker 3: twenty five percent to that eleven thousand to know.
Speaker 2: That you're going to end up the penalty. What is
Speaker 2: the penalty?
Speaker 3: It's ten percent?
Speaker 2: Ten percent, yep, I believe. So yeah, so.
Speaker 3: About a third, you know, you could be looking at
Speaker 3: like fourteen or fifteen thousand dollars, yes, yeah, which is
Speaker 3: a lot from your future, Wanda, from your future, ce
Speaker 3: your future, see yourself.
Speaker 1: Because it's not really just a let's just say fifteen
Speaker 1: thousand to really cover the eleven. It's not just fifteen.
Speaker 1: It's fifteen thousand dollars that is no longer growing. So
Speaker 1: it's the missing out of the fifteen to get rid
Speaker 1: of eleven and the fifteen that might have made you
Speaker 1: an additional five, six, ten thousand dollars down the line
Speaker 1: that you're not going to have access to as a
Speaker 1: result of it being gone.
Speaker 2: So it's a lot of money.
Speaker 1: It's almost like you ever hear old people say, don't
Speaker 1: go bad after good or good after bad, you know
Speaker 1: what I mean. So it's like, you know, some one
Speaker 1: of those things. Basically, it's like, is it good to
Speaker 1: pay for your credit card debt? Absolutely, but you might
Speaker 1: end up losing out, Like to pay off eleven thousand,
Speaker 1: you might lose twenty, So it's like that's not you know,
Speaker 1: is there another favorite options?
Speaker 2: Yes? Like, for example, are there options like?
Speaker 1: Credit unions are our favorite place for people to borrow
Speaker 1: money from because many credit unions are nonprofit based, meaning
Speaker 1: that their interest rates are much more favorable for people
Speaker 1: who are wanting to borrow.
Speaker 2: So do you do?
Speaker 1: I don't know how this credit card is. Is it
Speaker 1: set up a series of credit cards or whatever? Can
Speaker 1: you do a consolidation loan with a credit union or
Speaker 1: just borrow from more credit union at a lower interest
Speaker 1: rate than what you currently own?
Speaker 2: Is that a possibility? Yeah? Absolutely?
Speaker 3: Or get a zero percent if your credit is still good,
Speaker 3: if you've been making your payments on time, it should
Speaker 3: be relatively good. And mean, I don't know, it's hard
Speaker 3: to answer without all your information, but let's say you
Speaker 3: have a really you have above seven hundred credit score,
Speaker 3: could you qualify for a zero percent balance transfer credit
Speaker 3: card which would help you take that balance transfer to
Speaker 3: zero percent? And then since you're now employed, you could
Speaker 3: be making contributions and paying that debt down within the
Speaker 3: next year. You know, could you avoid could you afford
Speaker 3: to make about a thousand dollars payments a month or
Speaker 3: a little bit less depending on the terms to pay
Speaker 3: that off. It's yeah, there's all these different options. There's
Speaker 3: I think you mentioned the credit you know, getting a
Speaker 3: loan from a credit a credit union, which you know,
Speaker 3: a debt consolidation loan where you could just pay that
Speaker 3: off and then you pay.
Speaker 2: It in stall.
Speaker 1: As a house, if you have a house, you might
Speaker 1: be able to get a home reline of credit to equity.
Speaker 2: That's not my favor. I'm not gonna lie.
Speaker 3: Well, it puts you it's what they call it a
Speaker 3: second mortgage. It's it's another lean on your home. So
Speaker 3: if you were unable to pay it back, then you
Speaker 3: could lose your home potentially. You know the most about
Speaker 3: your financial your professional picture, and how secure this job is,
Speaker 3: I mean a job is you know, I don't know
Speaker 3: what kind of industry or anything like that. But if
Speaker 3: you feel super secure in your job and having that
Speaker 3: source of income moving forward, you know, you may take
Speaker 3: an option where you're able to pay the debt off
Speaker 3: with a lower interest or is no interest option like
Speaker 3: a personal loan or a zero percent balance transfer credit card,
Speaker 3: and then know that you'll be able to pay off
Speaker 3: those payments in the future while hopefully rebuilding your emergency fund.
Speaker 3: I'm assuming that you blew through your cash and that's
Speaker 3: why you came up with that eleven thousand dollars in
Speaker 3: credit card debt, which is completely understandable given the time
Speaker 3: that you're out of work.
Speaker 1: So also in the bad situations, it is a juicy one.
Speaker 1: So we've given you some great things to think about.
Speaker 2: C Yeah, she's like, damn it. I wanted one option.
Speaker 2: I wanted got it.
Speaker 1: Hopefullies are helpful to you. We have, we had a
Speaker 1: lot of good questions. We have to really shake up
Speaker 1: the bag, shake it, shake it. So this one's a
Speaker 1: little different, man, do you want to read that one?
Speaker 2: I would love to this says hello.
Speaker 3: I would like to remain anonymous, and I have a
Speaker 3: question about tapping into professional development funds at work. I
Speaker 3: recently was selected to participate in a one week fellowship
Speaker 3: to enhance my career. I would need to use my
Speaker 3: personal vacation time and pay for my travel It's been
Speaker 3: suggested that I ask my employer to cover both. The
Speaker 3: issue is I've been exploring other jobs, and I feel
Speaker 3: confident that I'll have another job offer very soon, potentially
Speaker 3: before I attend this fellowship. My question is, if I
Speaker 3: know that I'm potentially leaving within the next thirty to
Speaker 3: sixty days, is it in bad form to also take
Speaker 3: advantage of professional development funding? For a reference, my industry
Speaker 3: is a small world.
Speaker 2: Content my baby town. As an employee, myself diet the
Speaker 2: whole foot in. If someone did this to me, I'd
Speaker 2: be pissed there.
Speaker 1: I'd be like, hey, you know you, you know you,
Speaker 1: I'm paying for you to go. I'm just like, like,
Speaker 1: I imagine they're like, oh, hey, my Coeo sending her
Speaker 1: to Coo school and she's you know, and then thirty
Speaker 1: days later, before she's even finished with her professional donment,
Speaker 1: she's like, I'm out while I'm still.
Speaker 2: Paying on the training.
Speaker 1: Especially because sometimes I'm not gonna lie. Some of these
Speaker 1: employers out here be trash or you just trash them
Speaker 1: right back. But especially if it's a small industry where
Speaker 1: it's like I'm gonna.
Speaker 2: See you since in these streets I.
Speaker 1: Must see you in this employment streets, you want to
Speaker 1: be mindful. Like one of my sisters works in the
Speaker 1: pharmaceutical industry, and she said she literally was interviewed. So
Speaker 1: she had an internship in New Jersey at janj And
Speaker 1: then years later when she her husband is as a
Speaker 1: doctor and he got placed or whatever in Chicago, she
Speaker 1: was interviewing at a place in Chicago, and one of
Speaker 1: the women that were interviewing her, it was one of
Speaker 1: somebody she had an internship with when she was in
Speaker 1: New Jersey.
Speaker 2: She's like, oh my gosh.
Speaker 1: So they got along famously. I think she got the job.
Speaker 1: But she was like, wow, it's such a small world
Speaker 1: in pharma, especially black pharma, and so just keeping that
Speaker 1: in mind that like you want to be mindful because one,
Speaker 1: you know, like unless your employer was trash and even
Speaker 1: still you wouldn't be mindful, then you won't you know,
Speaker 1: I don't know that i'd want to do that. But too,
Speaker 1: if it's a small world, it's going to get out
Speaker 1: and you don't know who knows who and who was like,
Speaker 1: she's headed your way, yeah, the thief, she's coming. So
Speaker 1: and I think you kind of know that because you're like,
Speaker 1: keep me anonymous.
Speaker 3: I think you know the answer to this question absolutely.
Speaker 3: And you know what if your job is smart, what
Speaker 3: they're going to do if they if they agree to
Speaker 3: cover your expenses, what they're going to do is they're
Speaker 3: going to make you feel out a form that says
Speaker 3: you agree to stay with them or repay them if.
Speaker 2: You leave within a certain amount of time.
Speaker 3: That is very common, from everything from student loan reimbursement
Speaker 3: to tuition reimbursement to even my maternity leave my last company,
Speaker 3: I had to sign a waiver that if I accepted
Speaker 3: maternity leave, I would have to stay with them for
Speaker 3: at least a year. And I remember when I actually
Speaker 3: left my company. I was at the eleventh month mark
Speaker 3: from when I actually took maternity leave. I think my
Speaker 3: life fast day was February, well maybe like eleven and
Speaker 3: some change. I wasn't quite there, and I was like,
Speaker 3: how petty are they going to be?
Speaker 2: They won't that petty. What I also realized being.
Speaker 3: A senior manager is how much those little quid pro
Speaker 3: quos and caveats you really have to piss people off
Speaker 3: for them to actually enforce us. So be nice is
Speaker 3: again the most important career advice I can ever get
Speaker 3: but anyway, so that's something to think about too, is
Speaker 3: what strings will be attached to the money if you
Speaker 3: do ask for it. But honestly, if this is really
Speaker 3: important to your overall career and it's something that you
Speaker 3: want to do and you're going to leave your employer,
Speaker 3: then I think it's the responsible and ethical thing to
Speaker 3: do is for you to bankroll it yourself or negotiate
Speaker 3: a little bit of a sign on bonus from your
Speaker 3: future employer and say, you know, I'm going to use
Speaker 3: this or will you cover my expenses for this upcoming
Speaker 3: fellowship and maybe the timing will work out and you
Speaker 3: can get both from your new employer.
Speaker 2: Yeah, you want to keep it keeped.
Speaker 3: Yes, it can be anonymous, but show you the shady thing.
Speaker 1: Your questions are always amazing. We had a lot of
Speaker 1: questions this time. Keep them coming so you can ask
Speaker 1: those questions personal finance questions.
Speaker 2: What other kind of questions mandra.
Speaker 3: Career relationship, business questions, business entrepreneurship, Yes, texas with the
Speaker 3: lowercase T. Yeah, friendship with good friendship questions. I'll never
Speaker 3: forget the person who asked it's hard for me to
Speaker 3: make friends in my forties how do you do that?
Speaker 3: Oh yeah, uh yeah, and don't forget that we have
Speaker 3: an upcoming special coming. You may get to actually be
Speaker 3: here live in our virtual studio audience, which means keep
Speaker 3: an eye on our socials, especially ig. We may be
Speaker 3: asking you to submit questions and potentially giving you an
Speaker 3: opportunity to be here in our virtual studio. So if
Speaker 3: your eyes peeled, I would love to take some question.
Speaker 3: We'd love to take for questions live on an upcoming episode.
Speaker 1: Yeah, and in the meantime, we might even you know,
Speaker 1: there might be some swag opportunities to win some swaggy things.
Speaker 1: You never know, waiting a little little swaggy from time
Speaker 1: to time. Yes, but if you have questions, certainly email
Speaker 1: us to go to Brown Andbision podcast dot com and
Speaker 1: email us at Brownibision Podcasts at gmail dot com.
Speaker 2: Yes, you know what else?
Speaker 3: Do you see?
Speaker 2: How I don't know you know what it is?
Speaker 1: You know what it is with my brain is that
Speaker 1: if I if I'm making a thing like Tiffany, like
Speaker 1: it's like back there just simmering, and if I just
Speaker 1: say just say it, just let it flow. But if
Speaker 1: I'm like, wait, what's it?
Speaker 2: What is it?
Speaker 3: What is it?
Speaker 2: What is it? Bitanic?
Speaker 1: It's like, for example, I can't remember the IG and
Speaker 1: I'm like if I was just like, you know, if
Speaker 1: I just said it, but right now, because I'm panicking,
Speaker 1: my brain is like it's.
Speaker 2: Gone, Tiffany, just let it flow.
Speaker 1: So share this podcast in your group, chat with at
Speaker 1: least two to three other people. Literally, if there's an
Speaker 1: episode you love, grab the link and be like, y'all
Speaker 1: need to listen to this, or hey, sissy pooh, remember
Speaker 1: that time you asked me that question about the thing
Speaker 1: I didn't know about? They answered it on the on
Speaker 1: the b of the a, you know, and so the
Speaker 1: t NBM answered it. So share and yeah, we just
Speaker 1: love I know, we have a lot more new listeners
Speaker 1: and we're loving it. So stay cute and close with
Speaker 1: us because you know we love y'all.
Speaker 3: Can I do a quick correction before we close out?
Speaker 3: Last week on a show, I shouted out listener Bridget
Speaker 3: who does not exist. What I meant to say was Shakira,
Speaker 3: listener Shakira who turned her friend onto the show, and
Speaker 3: he was like in my DMS the day that the
Speaker 3: episode dropped and was like, I know you said, Bridget,
Speaker 3: but you meant Shakira, I believe it you and he
Speaker 3: was so nice about it. I was like, what does
Speaker 3: it not even in the same country of like the
Speaker 3: same universe of names that my hips don't lie and
Speaker 3: and thank Shakira.
Speaker 2: But I hope I got that right. Yo, that is
Speaker 2: a lot.
Speaker 1: I know he's gonna be like one more game if
Speaker 1: you don't. Oh yes, I hope you got that right too.
Speaker 1: Oh manor I love you girl.
Speaker 2: You're so crazy.
Speaker 3: I love you too, all right, miss saying well, I'm
Speaker 3: gonna go to Tarja.
Speaker 2: Gotta go real quick.
Speaker 3: No reason, no reason at all.
Speaker 2: Just do not get cars, do not getting cards. We're
Speaker 2: not doing a cart challenge. That challenge is crazy. To
Speaker 2: get back out what I tell you.
Speaker 1: Getting out was like I think I live here now,
Speaker 1: I live in this car. Getting it wasn't so hard.
Speaker 1: The gudding out I was like, wow, Tiffany, these knees
Speaker 1: they don't have.
Speaker 2: I was like, oh my god, what am I gonna do?
Speaker 1: But I managed because you know, you know, I had
Speaker 1: shoulder surgery. This arm was like I'm no good to you.
Speaker 1: You're gonna have to work with this one. I was like,
Speaker 1: I can't just do what r it was. It was
Speaker 1: a lot, but it was worth it. Yes, so yes,
Speaker 1: if you ever know what we're talking about, I'm going
Speaker 1: to be in Target by the time you listen to this.
Speaker 1: And I posted this really fun video of me inside
Speaker 1: Target card on my ig So go get your giggle.
Speaker 3: On and then sense of the episode that dropped Wednesday
Speaker 3: and get the full story.
Speaker 2: The full story, Yes, the full story. All right.
Speaker 3: To have a good rest of your week y'all, enjoy
Speaker 3: your weekend.
Speaker 2: Happy d a q A Friday,