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401K which is now my 201K
posted at November 3, 2011 6:30 PM EDT
First: November 3, 2011
Last: November 3, 2011
I'm a 72 year old widow. I have been in real estate since 1978. I am the principle broker of my own real estate company. I own several pieces of rental property. Sounds great. Now here's the sad part. My rental properties have greatly gone down in value and it is extremely hard to get good steady tenants. I have gone months without rent on some of my properties. Tenants lose their jobs; they have health problems or they get divorced. Need I say more. The worse part of this scenario is that I have mortgages on all of these properties and it is IMPOSSIBLE to get the delinguent tenants out. By the time you get a court date to evict them, they have already been behind in 3 months rent. I can't sell them because people can't get loans to buy them and on a couple of them I owe more than they will sell for.
To the person who said poverty is a disease; you need to take another look. I can tell you for a fact that I did nothing wrong to end up in this situation. I have worked HARD all my life and I still can't retire. I can't even afford to enjoy myself, like going shopping or going out to a nice restaurant. I have even applied at department stores and I can't get a job as a sales clerk. Yet, just a few years ago I was making in the 6 figure range.
I don't feel sorry for myself because, believe me, there are MANY more just like me. I'm not looking for a handout but I do think there are things that can be changed to help those of us over 70.
Since I'm over 70 1/2, I HAVE to take out a portion of my 401 K and then pay taxes on it. Besides, the value is droppng like a rock.
Now, for the reason of this letter. I would like to have the opportunity to withdraw what is left of my 401K without paying income tax on it. This money would be placed in an account to be handled by professional financial advisors and used ONLY for home buying, rebuilding our roads and bridges and to also hire more teachers, police and fire fighters. This account would allow individuals/companies to borrow at 4% interest and the participants would earn 3.5% tax free. NO POLITICIANS OR LENDING FIRM EXECUTIVES WILL BE ALLOWED TO BE ON THIS COMMITTEE OR DICTATE HOW IT WILL BE USED. That will be the responsibility of a commmittee made up of financial experts. I bet they would be willing to work for a lot less than the CEO'S in this country. In fact, I think if their company received bail-out money, they should have to reture their bonuses. Since when did we start OVER- PAYING people who are UNDER-ACHIEVERS
PLEASE DON'T BLAME THIS ON OBAMA BECAUSE IT STARTED LONG BEFORE HE CAME ALONG. It took EVERYONE in Washington several years to do this much damage to the best nation in the world.