So, why did I borrow from mine? I will tell you.

First, mine is not a 401(K). It is similar and called a TSP Thrift Savings Plan. It is run by the US Government and is one of the largest pension plans in the world.

I wanted to invest in some property and looked at my options. My first option was a home equity line of credit. I have a condo now for about 20 years so I have some equity in it. My credit is good, and it was an easy acceptance from the lender.

The problems were the fees and interest rate.

The interest rate was actually decent but the fees were in the thousands of dollars.

I looked for an alternative and found that I could borrow from myself. So here are the reasons I took out a loan from my pension fund.

1.I had enough money in the fund. I was allowed to borrow 50% or 50,000, whichever was less. I borrowed $50,000.
2.The interest rate was the lowest in town. I borrowed the money on February, 21, 2008 at 3.5%.
3.Simple application. I had to fill out a one-page form and fax it to the TSP office. I could have submitted it electronically and received a check in the mail. But, to get a direct deposit, a signature and a fax was required.
4.Low fees. TSP charges a flat rate of fifty dollars for the loan.
5.Paying it back. This is the beauty in my mind. It is an automatic payroll deduction, with no paperwork, and the money goes right back to my TSP (pension) with the 3.5%. I dont have to think, and I will never be late with a payment.
6.Length of loan. TSP has two types of loans. 15 year and 5 year. The 15 year loan for investing in your primary residence. The 5 year loan is for personal use. I chose the 5 year because my property investment will be overseas in Thailand and will not be my primary residence.

What is the downside?

There are a few items to consider. The money I am using is pre-tax and now I borrowed it. There may be tax implications.

I plan to pay the loan for two of the five years and then retiring. So, what happens to the money that I borrowed and have not paid back? It will now be declared as income unless I pay it back within about 60 days. If I can not pay it back, I will have to count this as taxable income, but, I dont care. I will be retired and my income will be low.

My money is not in the market. True, 50K is now not going up or down. But, about $420 every two weeks, along with my normal investment, will be going back to my TSP. So, it will grow back.

Anyhow, that was what I did. It may not be the solution to your financial issue, but it is something to consider if you have a TSP and need some cash for college, a house, or to pay some bills.

Related posts

• Should You Borrow From Your 401(K) Or TSP? (0)
• No Pension, No Worries, Network Marketing Is The Key (0)
• Do You Know Whats Going On With Your Pension Plan? (0)
• When IRAs, 401(k)s, and Other Tax-sheltered Investments Dont Make (0)
• Vesting and Your 401(k) (0)

One of the biggest advantages of direct deposit cash advances for retirees is that there are no restrictions on the way the borrowed money may be used. With cash in hand, retirees can use it to help cover the part of medical bills and prescription medications not covered by Medicare. Some may need to apply the funds to home or auto repair.

Another benefit of direct deposit cash advances for retirees is the ease of the online application process. In about 30 minutes, an individual can complete the application process. This consists of providing basic details such as your name, the cash advance amount youre interested in obtaining, and information about your bank account and your private pension. Once the information is verified, approval can be forthcoming.

As the name implies, direct deposit cash advances are deposited directly into your bank account the next business day following loan approval. Since the funds are directly deposited into your designated checking account at your bank, the recipient is not required to devote precious time waiting in line at a bank branch to deposit a check. And because the funds are directly deposited, there is no hold period on the funds as there might be when depositing a check drawn on a different bank than that of the borrower. This means that on the day that your loan is posted to your bank account, the money is yours to spend as you need.

A repayment schedule will be created as part of the application process based on the date that you are scheduled to receive your next recurring pension payment. This is within 30 days of the date of the submission of the loan application. Remember, this is a cash advance meant to be only a short-term loan so money is to be repaid quickly. Repayment is just as easy as the loan initiation process. When your next private pension payment is deposited into your bank account, the amount of cash advanced will be automatically debited from your account to repay the loan. From there, the funds will make their way back into the account of the cash advance company and your repayment obligation will be fulfilled. Loans may usually be extended for no more than two or three pay periods based on state law and the policies of the lender, but, since the fees for such extensions would become substantial, these limits cannot be exceeded by borrowers.

As you can see, direct deposit cash advances for recipients of recurring pension payments are superior to the alternative means of obtaining short-term cash. This is a ready source of funds available in a reliable, secure, and confidential manner from any location with a personal computer that has a connection to the Internet.

Related posts

• Why Did I Borrow From My Pension Plan? (0)
• Learn about the Roth IRA and how you can invest (0)
• Google Adsense: Computer Knowledge and Direct Deposit (0)

You dont have to be a techno-geek to use Google Adsense. In fact, you dont need any more technical knowledge than you do to surf the web. Google Adsense is very user-friendly with a comprehensive support site to answer any question you might have.

You are first walked through the sign-up process where you are prompted for any and all information needed. You will then have a couple of days while you are waiting for your account to be approved. This would be a good time to familiarize yourself with the program policies, which of course you read before you signed up. But look again. Make sure the site you are registering doesnt have any of the no-nos listed. For instance, some profanity is allowed, but nothing excessive. What is excessive? That could be a gray area, but if youre in doubt, dont register that site. Theres plenty of sites with little or no profanity.

Look at the support site while you are waiting on Google Adsense and see what others are saying and doing. Most of all, have fun. Your Google Adsense dollars are just waiting to be counted.

Does Google Adsense Offer Direct Deposit?

Google adsense offers various payment options for publishers.

Electronic Funds Transfer (ETF) is offered in 16 countries whereby your payments are deposited directly into your bank account in your local currency. Check Google Adsense support to see which countries participate in this option. You will need to sign up for this option after your application is approved by signing into your account. You then click the edit link adjacent to the payment header. After you fill out the bank information, Google Adsense will make a small test deposit into your account. This is for security purposes to assure the account is really your own.

Watch your account for the test deposit to post, usually within just a few days. After you have received the deposit from Google, log back in to your account and in the Payment Details section, click Verify Account. You then will need to enter the amount of the test deposit. If you do not complete this step, your payments will be on hold. Once you enter the test deposit amount correctly, your bank will be approved and selected as your form of payment.

Word Count 401

PPPPP

Related posts

• Google Adsense: Keeping Your Account From Being Disabled and Useful (0)
• Google Adsense: Having Multiple Sites For One Account and Buying (0)
• Why Did I Borrow From My Pension Plan? (0)
• Direct Deposit Cash Advances For Recipients Of Private Pensions (0)