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Money Questions: Yes, we see some signs of economic hope

By Helen Huntley, Times Personal Finance Editor
In print: Sunday, June 8, 2008

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We asked

What signs have you seen that the economy is starting to improve?

Many readers are like Dolores Singleton of St. Petersburg, who wrote to say she hasn't seen any signs of improvement. "People are buying their groceries at dollar stores, saving up every dollar to pay taxes in November," she said. However, we asked about signs of hope, and here's what some said they have noticed:

Two foreclosed properties in our community have been sold, so that's a good sign. Once the foreclosed properties sell, the market can start to get back to normal.

John Dering, Hudson

Just got back from three days at the Disney parks — jammed! Trouble was it was all Brits.

Bob Lartz, St. Petersburg

Tech stocks are rallying. To me this is a first indication that confidence in consumer products is coming back.

Mike Beattie, Tampa

House sales are picking up although prices are still off. There are some real bargains out there right now.

Bill Murphy, Sun City

I have noticed an uptick in individuals looking to buy a home, predominantly first-time home buyers.

Scott Strepina, Tampa

We have moved back to New Hampshire. Looks good here. Unemployment is 3.8 percent and construction of new mall stores and hotels is booming.

Bill Pope, Oldsmar and Silver Lake, N.H.

It is encouraging that automakers are focusing on building fuel-efficient cars, and builders are designing smaller, more energy-efficient homes.

Dan Dixon, New Port Richey

You asked

My job was eliminated several months ago. My family and I have managed to make ends meet, but I may need to tap my 401(k) (about $17,000). Should I request a direct distribution to me for the full amount to utilize for my family's day-to-day expenses if required, or should I process a rollover that would require me to place the funds in an IRA within 60 days? Chances are good I will have full-time employment within the next 30 days, but I'm not sure.

Usually it is best to open an IRA with a mutual fund company or brokerage firm and arrange for a direct trustee-to-trustee transfer from your 401(k). If you ask for a check, the 401(k) custodian will withhold 20 percent for taxes, which will create problems if you want to do a rollover. However, you might want to leave the 401(k) money where it is if the plan allows it and if you are between 55 and 59 1/2. There's no 10 percent penalty on a 401(k) withdrawal if you were at least 55 the year you left the company. For an IRA, the penalty is eliminated at 59 1/2.