Comments on: Should I Raid My Retirement Account to Pay off Debt? http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/ Money Management, Small Business, Career Thu, 09 Feb 2012 19:08:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ryan http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/#comment-37841 Ryan Sat, 29 Oct 2011 14:53:47 +0000 http://cashmoneylife.com/?p=1399#comment-37841 Paula, I think the answer to your questions should be decided by your long term plans, including when you wish to retire, whether or not you have additional income streams for retirement (such as a 401k plan, pension, spouse's income, other investments, etc.). Right now I think the best thing to do is take a long look at retirement planning and your retirement goals, then make your decisions based on your long term goals. There are a lot of factors which go into this decision so I encourage you to visit with a finical planner for a one on one meeting so he can go over your entire financial situation and help you create a plan for retirement. Paula,

I think the answer to your questions should be decided by your long term plans, including when you wish to retire, whether or not you have additional income streams for retirement (such as a 401k plan, pension, spouse’s income, other investments, etc.). Right now I think the best thing to do is take a long look at retirement planning and your retirement goals, then make your decisions based on your long term goals. There are a lot of factors which go into this decision so I encourage you to visit with a finical planner for a one on one meeting so he can go over your entire financial situation and help you create a plan for retirement.

]]> By: Paula http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/#comment-37840 Paula Sat, 29 Oct 2011 14:32:56 +0000 http://cashmoneylife.com/?p=1399#comment-37840 I'm 59 1/2 and considering cashing out my Roth IRA (free of penalties and tax repercussions) to pay off my car. My Roth is paying 3.5%....my car payment interest is 5%. I'm thinking of applying the $272.oo a month car payment to my condo payment.........I owe 4 more years on the mortgage of my condo, and 2 1/2 years on my car. My thought is to eliminate debt as I head toward retirement. Should I eliminate debts at this age, or continue to pay monthly car and condo payments, (in hopes my job will last) and save my Roth IRA for retirement? thanks........ I’m 59 1/2 and considering cashing out my Roth IRA (free of penalties and tax repercussions) to pay off my car. My Roth is paying 3.5%….my car payment interest is 5%. I’m thinking of applying the $272.oo a month car payment to my condo payment………I owe 4 more years on the mortgage of my condo, and 2 1/2 years on my car. My thought is to eliminate debt as I head toward retirement. Should I eliminate debts at this age, or continue to pay monthly car and condo payments, (in hopes my job will last) and save my Roth IRA for retirement?

thanks……..

]]> By: Ryan http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/#comment-34701 Ryan Fri, 09 Sep 2011 16:50:01 +0000 http://cashmoneylife.com/?p=1399#comment-34701 Linda, it's a good idea to look into the ramifications of <a href="http://cashmoneylife.com/401k-plan-loan/" rel="nofollow">taking a loan from 401k Plan</a> and what can happen in the event you leave your job and how it will affect your investment growth. If you are OK with those risks and it helps you sleep better at night, then it may be a feasible option. Linda, it’s a good idea to look into the ramifications of taking a loan from 401k Plan and what can happen in the event you leave your job and how it will affect your investment growth. If you are OK with those risks and it helps you sleep better at night, then it may be a feasible option.

]]> By: linda m williams http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/#comment-34695 linda m williams Fri, 09 Sep 2011 15:14:12 +0000 http://cashmoneylife.com/?p=1399#comment-34695 I have 2 secured loans that r outstanding $6500.00. I have a 401k with my job that matches and a 401k that was rolled over from another job. I would like to take out a loan to pay off this debt. The debt is causing me sleepless night and I have been employed by my company for the last 25+ years. I would like to repay this money back into my 401ks within a 2yr period. I am 57 yrs of age and I plan to work until I am 70+(if my health allows). What should I do? I have 2 secured loans that r outstanding $6500.00. I have a 401k with my job that matches and a 401k that was rolled over from another job. I would like to take out a loan to pay off this debt. The debt is causing me sleepless night and I have been employed by my company for the last 25+ years. I would like to repay this money back into my 401ks within a 2yr period. I am 57 yrs of age and I plan to work until I am 70+(if my health allows).

What should I do?

]]> By: Ryan http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/#comment-22883 Ryan Mon, 29 Mar 2010 17:22:52 +0000 http://cashmoneylife.com/?p=1399#comment-22883 Peggy, paying your taxes is going to be something you need to do - otherwise you may end up owing substantial penalties and fees which will only increase the tax burden. Each state has different rules regarding payment plans, late fees, etc. I recommend speaking with a local accountant who can help you with your options. Best of luck. Peggy, paying your taxes is going to be something you need to do – otherwise you may end up owing substantial penalties and fees which will only increase the tax burden. Each state has different rules regarding payment plans, late fees, etc. I recommend speaking with a local accountant who can help you with your options. Best of luck.

]]> By: peggy http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/#comment-22882 peggy Mon, 29 Mar 2010 15:32:13 +0000 http://cashmoneylife.com/?p=1399#comment-22882 I am so upset and do not know what to do. I had my taxes done and found out that I owe almost $2000.00 to state. I am 60 almost 61, living alone after 40 years of marriage, and am living off of disability. I do not know what to do next to pay my tax bill. I have money in an IRA but don't want to have to touch it. I heard that it is very expensive to make payments to the Internal Revenue Service so what do I do? I do not have any family or friends to borrow the money from so what do I do???PLease help me. I am so upset and do not know what to do. I had my taxes done and found out that I owe almost $2000.00 to state. I am 60 almost 61, living alone after 40 years of marriage, and am living off of disability. I do not know what to do next to pay my tax bill. I have money in an IRA but don’t want to have to touch it. I heard that it is very expensive to make payments to the Internal Revenue Service so what do I do? I do not have any family or friends to borrow the money from so what do I do???PLease help me.

]]> By: Ryan http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/#comment-16687 Ryan Thu, 19 Feb 2009 03:16:47 +0000 http://cashmoneylife.com/?p=1399#comment-16687 <strong>DC Reeves: </strong>Hindsight being 20/20, it worked out perfectly well for you, but not many people can predict the ups and downs of the stock market like that. Most of the time, early withdrawals are not worth it. As for the extra $700 per month to invest, that's a good way to look at it - but you would still be down a couple grand on your retirement savings. I hope you have time to build it back up. DC Reeves: Hindsight being 20/20, it worked out perfectly well for you, but not many people can predict the ups and downs of the stock market like that. Most of the time, early withdrawals are not worth it.

As for the extra $700 per month to invest, that’s a good way to look at it – but you would still be down a couple grand on your retirement savings. I hope you have time to build it back up.

]]> By: DC Reeves http://cashmoneylife.com/ak-the-m-network-should-i-raid-my-retirement-account-to-pay-off-debt/#comment-16686 DC Reeves Thu, 19 Feb 2009 03:02:53 +0000 http://cashmoneylife.com/?p=1399#comment-16686 I withdrew 10K from my traditional IRA last Feb (2008) to combine with my emergency fund to pay off my mortgage, whose P&I payments were $700.00 per month. I only needed 9K and I paid the 10% penalty upon withdrawal ($1000). Since I had 100% stocks with this IRA, it lost about 50% of it's value in the slump we are now in. Had I not withdrew the money, I would have lost it anyway, and still had the P&I portion of my mortgage. Now I have an extra 700 per month to invest. I think that is an excellant use of IRA money. I withdrew 10K from my traditional IRA last Feb (2008) to combine with my emergency fund to pay off my mortgage, whose P&I payments were $700.00 per month. I only needed 9K and I paid the 10% penalty upon withdrawal ($1000).
Since I had 100% stocks with this IRA, it lost about 50% of it’s value in the slump we are now in. Had I not withdrew the money, I would have lost it anyway, and still had the P&I portion of my mortgage. Now I have an extra 700 per month to invest. I think that is an excellant use of IRA money.

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