The new smart financial move is walking away

[UCGal]

Dave pretty much nailed it for me.

Lots of blame to go around. The strategic defaulters aren’t victims. The folks who took out loans more than they could afford are responsible for their bad decisions. As is the bank that loaned them more than they could afford.

Banks should pay a price for bad underwriting. Folks who walk away (strategically or not) should pay the price of lost down payments, credit score hits, social stigma… Share the blame, share the pain.

[edna_mode]

Another interesting twist is the mention that the profiled person has been “socking away money for retirement”. If she was doing it in an ERISA-qualified plan (most pensions and 401(k) are), then that money is largely JUDGEMENT-PROOF. A quick google suggests the only way for another party to take away retirement accounts is for family support (http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html). The Supreme Court upheld that IRAs are similarly shielded in 2005.(http://www.washingtonpost.com/wp-dyn/articles/A24753-2005Apr4.html)

So another reason to top up those retirement accounts every year — not only do you diversify your taxation liability, you protect some of your assets against bankruptcy, lawsuits, etc.

[edna_mode]

Another interesting twist is the mention that the profiled person has been “socking away money for retirement”. If she was doing it in an ERISA-qualified plan (most pensions and 401(k) are), then that money is largely JUDGEMENT-PROOF. A quick google suggests the only way for another party to take away retirement accounts is for family support (http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html). The Supreme Court upheld that IRAs are similarly shielded in 2005.(http://www.washingtonpost.com/wp-dyn/articles/A24753-2005Apr4.html)

So another reason to top up those retirement accounts every year — not only do you diversify your taxation liability, you protect some of your assets against bankruptcy, lawsuits, etc.

[edna_mode]

Another interesting twist is the mention that the profiled person has been “socking away money for retirement”. If she was doing it in an ERISA-qualified plan (most pensions and 401(k) are), then that money is largely JUDGEMENT-PROOF. A quick google suggests the only way for another party to take away retirement accounts is for family support (http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html). The Supreme Court upheld that IRAs are similarly shielded in 2005.(http://www.washingtonpost.com/wp-dyn/articles/A24753-2005Apr4.html)

So another reason to top up those retirement accounts every year — not only do you diversify your taxation liability, you protect some of your assets against bankruptcy, lawsuits, etc.

[edna_mode]

Another interesting twist is the mention that the profiled person has been “socking away money for retirement”. If she was doing it in an ERISA-qualified plan (most pensions and 401(k) are), then that money is largely JUDGEMENT-PROOF. A quick google suggests the only way for another party to take away retirement accounts is for family support (http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html). The Supreme Court upheld that IRAs are similarly shielded in 2005.(http://www.washingtonpost.com/wp-dyn/articles/A24753-2005Apr4.html)

So another reason to top up those retirement accounts every year — not only do you diversify your taxation liability, you protect some of your assets against bankruptcy, lawsuits, etc.

[edna_mode]

Another interesting twist is the mention that the profiled person has been “socking away money for retirement”. If she was doing it in an ERISA-qualified plan (most pensions and 401(k) are), then that money is largely JUDGEMENT-PROOF. A quick google suggests the only way for another party to take away retirement accounts is for family support (http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html). The Supreme Court upheld that IRAs are similarly shielded in 2005.(http://www.washingtonpost.com/wp-dyn/articles/A24753-2005Apr4.html)

So another reason to top up those retirement accounts every year — not only do you diversify your taxation liability, you protect some of your assets against bankruptcy, lawsuits, etc.

[CBad]

Yep, Dave’s post has been the best summary on this topic I’ve seen yet.

[CBad]

Yep, Dave’s post has been the best summary on this topic I’ve seen yet.

[CBad]

Yep, Dave’s post has been the best summary on this topic I’ve seen yet.

[CBad]

Yep, Dave’s post has been the best summary on this topic I’ve seen yet.

[CBad]

Yep, Dave’s post has been the best summary on this topic I’ve seen yet.

[SD Realtor]

Actually to me 4plexs comments are the best comments. Nobody forced anyone to buy anything.

Yeah I would agree about the business decision part of what Dave wrote.

However it should be prefaced with, if I made a freeking idiotic stupid business decision to buy something I could barely afford, get into an assinine loan, and pray to god for continued unrealistic appreciation, to justify this stupid business decision, then I will be fine. However walking away from this dipwad move is justified because after all business is business.

Walking away because of hardship, injury, job loss etc to me is another story.

[SD Realtor]

Actually to me 4plexs comments are the best comments. Nobody forced anyone to buy anything.

Yeah I would agree about the business decision part of what Dave wrote.

However it should be prefaced with, if I made a freeking idiotic stupid business decision to buy something I could barely afford, get into an assinine loan, and pray to god for continued unrealistic appreciation, to justify this stupid business decision, then I will be fine. However walking away from this dipwad move is justified because after all business is business.

Walking away because of hardship, injury, job loss etc to me is another story.

[SD Realtor]

Actually to me 4plexs comments are the best comments. Nobody forced anyone to buy anything.

Yeah I would agree about the business decision part of what Dave wrote.

However it should be prefaced with, if I made a freeking idiotic stupid business decision to buy something I could barely afford, get into an assinine loan, and pray to god for continued unrealistic appreciation, to justify this stupid business decision, then I will be fine. However walking away from this dipwad move is justified because after all business is business.

Walking away because of hardship, injury, job loss etc to me is another story.

[SD Realtor]

Actually to me 4plexs comments are the best comments. Nobody forced anyone to buy anything.

Yeah I would agree about the business decision part of what Dave wrote.

However it should be prefaced with, if I made a freeking idiotic stupid business decision to buy something I could barely afford, get into an assinine loan, and pray to god for continued unrealistic appreciation, to justify this stupid business decision, then I will be fine. However walking away from this dipwad move is justified because after all business is business.

Walking away because of hardship, injury, job loss etc to me is another story.

[Author]

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