the 401(k) hot tub

my parents are not known for their financial savvy. in fact, they might be known for their total lack of it. but my mom always seemed to have a better handle on things than my dad. until i heard this story.

so, currently, my mom's two dogs are costing her money. a lot of money. they're constantly sick and my mom is constantly taken, so somewhere in between is how she keeps losing dough on these dogs.

anyway, after telling me her sick-dog woes (it does sound bad, btw), she informs me that her husband has asked her to dip into her 401(k) for some money to pay the vet bills.

have i mentioned we're in the worst economic crisis of our time? have i mentioned my mom isn't that far off from retirement? have i mentioned that between her and her husband they have 4 cars and a huge house with a pond in the back? have i mentioned this is for vet bills?

so she tells me that she put her foot down "after the last time." i'm sorry, what? "oh, well there are huge penalties." yep, that i know. how do you know? "well, he asked me to take some money out while we were in Canada so he could get a hot tub. but they really get you with those taxes!"

you took money out of your 401(k) for a hot tub?
"yes, but with those taxes, i won't be doing it again."

um ...

i guess i should be glad that the lesson was learned. after all, her mother lost a house due to gambling and still goes to the casino. but i still can't believe that a) her husband would suggest such a thing b) she would do it.

it does remind me, however, to fill out that paper work for my financial advisor. and that, if we ever have kids, to have a good, long talk with them about money.