Retirement help

No, only withdraw from IRA for life or limb, however living with the inlaws maybe close. You will forever loose the power of time on your investment. Assuming living with the inlwas you are saving some money vs house note, utilities, etc, contribute all of that in addition to your normal contributions/ notes toward your lot

27 and 26.
That's all I have in retirement. The 10k is pre tax, 403b is what it has been going into.

Yes, without touching our savings (10k) that'll put us at 80% and keep the mortgage monthly payment decent.

If you recommend rolling all of it over, which Roth would you recommend?

Sorry we are both idiots with this stuff but trying to learn more. Our careers are in the medical field so this stuff is unfortunately, completely foreign.

Combined about 120k. She's in grad school, so she's only working part time. Graduates in 1 year, her salary will double. House we are building is one we can afford with our current salaries.

Do not tap into your 401K.


I would start paying off the land mortgage as soon as possible provided you dont have any other bills like credit card debt, student loans, etc , etc. With a 120K income you should be able to knock that out in a year or two.


I would not start building till the land is paid off.

If you roll it into a Roth you will pay taxes on the amount since 401ks are pre tax contributions.

Unless it was a Roth 401k to avoid taxes you should roll into a traditional ira. If there is a way to avoid taxes and roll into A roth ira I would love to know.

So you gross 10K a month so you probably taking home 7-7500 a month no reason you cant fork down 3K a month on the land and have it paid off in 14 months with no problem. Congrats on the no debt too.


Good Luck...

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I'm guessing tuition is a substantial amount each semester for medical school, would they be better off paying this via credit card, then paying off with the cash quickly to gain rewards?

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This would be great, but I am currently in grad school at LSU and there's a fee you have to pay if you pay with a credit card that doesn't make this worth it. I know OP wife probably doesn't go to LSU, but I'd imagine most colleges/universities are the same way.

Find a place to rent, move out of your inlaws' place, then start paying off your land loan (unless the interest rate is super low--what's the interest rate?). After that, you can start saving for a down payment.

DO NOT withdraw from your 401k, IRA, or Roth IRA. You will lose a lot of money in the long run.

And please, don't sacrifice your retirement plan contributions for saving for your down payment. If you can't save for retirement AND save for your down payment, it might not be a good idea to build a house. Houses are usually not good investments, despite what most people think.

edit: when I say they aren't good investments, I mean they aren't compared to using the money for a down payment to invest in tax-advantaged retirement accounts. Unless your rental market sucks, renting is usually cheaper and lets you save more for retirement. Houses are money and time pits.

edit2: just noticed that you guys have a really good income assuming you don't live in a major city. You guys should be in really good shape, just don't rush things. You're young and you can wait a few years to do things right.

My advice is to commit to renting for a while so you can pay off that lot loan and then save up for the house. You should also be able to contribute up to your employer's 401k match, and hopefully max out at least one of your Roth IRAs.

Please don't buy any brand new cars or anything like that. Don't add any debt you don't absolutely need for the house. Keep an emergency fund. Check out some mortgage calculators so you can see the huge differences between a 5% down payment, a 10% down payment, a 20% down payment, and a 30% down payment.

And maybe most importantly, read a book about financial planning!