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re: Going into my IRA to be debt free
Posted on 12/17/09 at 4:52 pm to foshizzle
Posted on 12/17/09 at 4:52 pm to foshizzle
quote:
FWIW you can (I think) withdraw from an IRA penalty-free for a downpayment on a first home up to $10K. I still don't know if that is wise, but it may be an option.
Yar. At least then he wouldn't be paying 41% in taxes and penalties for a DEPRECIATING asset, that makes zero financial sense. A house might at least maintain or appreciate in value if he took a tax free withdrawal in the future for a down payment. I don't like the truck payoff idea at all. Sell it and buy a less expensive vehicle if it is causing that much angst. You would be better diverting your 401k contributions above your company match to your truck payment if it is really eating you that badly.
0
Posted on 12/17/09 at 5:04 pm to BugAC
I skimmed through some of the responses so I may have missed what I'm about to write.
Have you considered temporarily decreasing the amount you put into your 401(k) each pay period now (assuming you are in a plan with your new employer) and adding that extra amount of take home pay to your truck payment? That would pay off your truck faster. It is amazing how much sooner you could pay it off by paying another $100-150/month on it.
If you are not in a 401(k) plan now, then never mind.....
Have you considered temporarily decreasing the amount you put into your 401(k) each pay period now (assuming you are in a plan with your new employer) and adding that extra amount of take home pay to your truck payment? That would pay off your truck faster. It is amazing how much sooner you could pay it off by paying another $100-150/month on it.
If you are not in a 401(k) plan now, then never mind.....
Posted on 12/23/09 at 10:24 am to BugAC
Don't go into the IRA. Just get on a budget and pay it off. You're not being patient with the process. Let me suggest a program called Mvelopes to help with the process.
www.Mvelopes.com is a good place to start. This might be the best financial move you've ever made. It's a very sophisticated way to handle your finances and will allow you to harness your income and control your expenses. It's tied to your bank account so your transactions will flow through this budgeting program. Try it.
www.Mvelopes.com is a good place to start. This might be the best financial move you've ever made. It's a very sophisticated way to handle your finances and will allow you to harness your income and control your expenses. It's tied to your bank account so your transactions will flow through this budgeting program. Try it.
Posted on 12/23/09 at 10:41 am to BugAC
Dave Ramsey would have a heart attack...you'll get nailed when that IRA withdrawal is taxed as income in addition to the 10% penalty. So you're looking at having to take out around ~22K to pay off a 16100 truck.
I wouldn't do it if it were me.
I wouldn't do it if it were me.
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