Even though the Wall Street bailout bill is in place it still will take time before money is available. Of course everyone is hoping this will make money easier to obtain. While you’re waiting for the “traditional bank channels” to come through, consider some of the following options. I have not personally used any of the Internet connections but these are some I found on line.
Web-only banks. These are internet banks and found only online. These do not have brick and mortar presence therefore do not have the same overhead as traditional banks. Also you may want to check the online bank rates against the traditional banks, they may be more competitive. Check out www.ebank.com for more information. For a list of unauthorized banks, click here.
Peer-to-peer lending is another way to get money. Put together your financial statement, why you need money and what you’re going to use it for and go online to sell yourself. The money will come from private lenders — $100 here and there, as well as larger amounts. It is estimated that by 2017 nine billion dollars will be lent this way. Click here for more information.
Have money invested in your 401K? Why not talk with your financial planner to explore the pros and cons of withdrawing some of this money? They can look at your particular situation to determine the best tax and investment strategy going forward. According to Barbara Bouchey, CEO of Barbara Bouchey Asset Management, Inc., “Retirement plans are a great vehicle to save money because of the tax savings and the tax deferment." While most people would never consider withdrawing money before age 59 ½, owing to the 10% penalty and taxes, Barbara says there are some upsides. “Oftentimes, the breakeven point after paying the penalty and taxes on withdrawing money can occur within 5-10 years. Therefore, these vehicles are an attractive place to save and withdraw money for purposes other than retirement.” For more information go to www.barbarabouchey.com.
Remember, “cash” is still king.