Ehtiraf

When a manager is hired to manage a mutual fund, he or she is getting paid—by you, if you’re one of the investors. Most managers get a percentage each year to manage a fund’s assets. The average is about 1 percent of the invested capital a year, which I think is quite high. In addition [...]

The other advantage of an index fund over a typical managed fund—and this can be major—is that most mutual funds are set up so that if there’s a capital gain when they sell a stock, that gain is passed through to the investors. At the end of the year the fund will pay you (or [...]

With a 401(k) loan, fees are variable: some employers will charge you for taking out the loan and some won’t. Some make you pay a fee of up to $100 just to fill out the paperwork, and some charge a yearly fee while the loan is outstanding. The same is true of home equity loans: [...]

Before we compare the numbers, think about whether you are disciplined or not—it may have been lack of discipline in most cases that got you into all this debt to begin with. With a 40 1(k) loan you don’t have a choice. You have to pay back the loan in five years. Home equity loans, [...]

Another alternative, if you’re really in credit card trouble, is to rake out a home equity loan to pay off your debt. A home equity loan has its advantages. The loan will almost certainly be at a lower interest rate than your credit card, and often that interest is tax-deductible, so you’ll have converted a [...]

You may be able to borrow from yourself to pay off your credit cards through your 401(k) plan at work. Many employers will let you borrow up to 50 percent of the money you have in your plan, up to $50,000, to buy a house or pay off bills or for other situations that qualify. [...]

These are the steps that many people, including quite a number of my clients, have taken to get out of debt. You can do it, too.
1. Figure out the absolute largest amount you can afford to
pay monthly toward your credit cards. Let’s say that amount is
$600 a month. You may think this is a lot, [...]