| BUSINESSWEEK ONLINE : JUNE 28, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR
Emergency Sources of Cash YOUR HOME HOME EQUITY LOAN Easy to arrange, and interest is tax deductible. REVERSE MORTGAGE The debt is not repaid until you leave your home or die. But if your heirs can't repay, they could lose the house. SELLING AND RENTING BACK One way a terminally ill person can stay at home for life. But the transaction can be complicated. YOUR LIFE INSURANCE BORROW Whole-life or other cash-value insurance is good collateral for a loan. ACCELERATED DEATH BENEFIT RIDER This cash-value policy will pay up to half its value if you have less than six months to live. SELL YOUR POLICY Viatical companies will buy any life-insurance policy at a discount. It's very costly if you have only months to live. YOUR RETIREMENT PLANS 401(K) PLANS AND IRAs You may be able to borrow up to $50,000 from your 401(k) or 403(b) but check whether your plan has restrictions. You can also make an early withdrawal from an IRA, but you'll owe tax on the distribution. You may be exempt from the 10% penalty on early withdrawals. However, the rules are confusing, so check with an accountant. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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