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Subject:  Debt vs emergency fund Date:  10/24/2013  6:09 AM
Author:  sparkliingone Number:  307394 of 312185

I need advice.
I hope someone can help.

I currently earn about 90k per year.
My monthly expenses are easily 4k.
I have 47,000 in savings which is earmarked for emergency.
I have 183,000 in deferred compensation.
I have at least 40-60k in equity in my coop.
I have about 9500.00 in stock.
I have about 20,000 in credit card debt.
3k left on my car loan
2nd car worth 6k - husband drives.
Husband is in school, brings in no money.
I live in one of the most expensive areas in the nation.

I am retiring from my job in 100 days.
My pay will be cut in half, possibly to 44k.
I do plan on going back to work. I am only 45.
I have an MA and I have a paralegal certification and
I consider myself very employable so I am not horribly
worried about getting a job - somewhere.
I just don't want to do all this under extreme pressure, which
comes when one doesn't know what one is doing.
(or can't find their butt with two hands)

Clearly, I am not prepared. So I have to get prepared.

I know I have to cut down expenses. I have the LBYM board for that.
I read that I should pay off the debt. But my question is...taking such
a large paycut and being the only bread winner, is it wise to cut my emergency fund in half?

I realize I could also refinance and pull equity or not. Need a lawyer to answer this one...I wish to not become a joint tenant on the deed with my husband. It is a pre-marital asset and he has contributed nothing toward the place in the entire marriage. I am afraid that just the act of refinancing will make it a marital asset. I would rather keep the insanely high interest rate. the payment is still only 490.

I'm ready and willing to tighten the belt but I want to make the right decisions. Can anyone help with these questions?

And anything else you have to add is welcomed.

Thank you so much.
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