cash in ira to pay off housegreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
What do you think about cashing in a IRA to pay off a house Will they let you do this with out penilty If investment are going down why not into something you worked your whole life for.At least the is something you really need.I'm 50 and my IRA is bigger then my mortage.
-- Steve M (firstname.lastname@example.org), June 28, 1998
I wouldn't for two reasons: (1) tax consequences and, (2) if TSHTF, your home may decrease in value. Therefore, you would lose all your equity in your home. You may not want to stay where at and would have trouble selling it. I live in California and that is the case in many areas of California. Also, you would be real estate rich. I would pull money equity out of my home and put it into some other sound investment...haven't found one yet, but there must be one out there. If you are set on being real estate rich, use your equity to buy another piece of property and pay cash for it. If you end up being foreclosed on, at least you will have another home that is paid for. Can you roll over your IRA into more safe investments?
-- Barb-Douglas (email@example.com), June 29, 1998.
When it is ever a bad idea to own property free and clear of mortgages? I keep thinking about long-term investments vis a vis probate, estate taxes...the fact that coffins don't have pockets...If I was in a position to do so, I would pay off my house, and put my adult children on the title, Y2K or no Y2K....I could blow a blood vessel in my brain in the next moment...there are no guarantees that anything will be as assumed or last forever. How much do you want Uncle Sam to have? Isn't rampant assumption of prosperity lasting forever part of what's gotten the world in the Y2k mess that it's in?
-- Donna Barthuley (firstname.lastname@example.org), July 02, 1998.
Donna I like your answer. Just what I been thinking. May lose more than the tax and pentily if investments go bad. at least you have your home
-- Steve M (email@example.com), July 02, 1998.