Talk me down...

[Snave]

Thanks Steve. I put the hypothetical to this situation, but it might be me that does this at the end of 2008. We just put the patio in and I am in need of a new car (I will NEVER by American again! I have sunk more money in to this Lincoln than I care to share!). Since I really don't enjoy debt, I will probably pay cash for the car and suck it up and have a little debt for a few months in 2009 if I go ahead and fund the Roth using the HELOC. I do not know if I will have the cash to fund it in 2008 and have everything else paid off also. The interst rate will be better with the HELOC than a loan would be if I took one out for the car so that is why I am leaning this way if it happens. Now before maat55 tells me to buy less house and and toys like the IMO so that I can invest properly, I am maxed in my 401k this year. We also typically save more than 30% of our income in a given year. 2008 just happens to be one of those years where everything seems to be hitting (and with a lot of zeroes on the end)!