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to do or not to do
i want to take money out of my ira and pay off two mortgages. I have six rentals. people i talk to ,said do it. any advise out there
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I would say do NOT do that. -
Could you give us some background? Are any of the mortgages in foreclosure? Why are some people advising you to take money out of an IRA?Comment
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I'd be hesitant to do it, your IRA is for retirement savings. If it's not the original contributions you put into a Roth IRA you may have to pay an early withdrawal penalty and end up losing money on the deal.
Are the rentals profitable? If they are not, and you need to get rid of the mortgages, maybe selling them might be an idea?Comment
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I'd also ask why? Cashing out your IRA will cost you an early withdrawal penalty plus taxes (I'm assuming you are not over 59.5). Your mortgage rates are probably relatively low and tax deductible.
What possible benefit would there be?Steve
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Why not focus on one house at a time and debt snowball them into the black?? ...and keep your retirement stashed for retirement? Are you currently able to service the debt? Houses all rented w/a positive cash flow?Comment
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Take some of that restless energy you have in wanting to pay off 2 mortgages and come up with another way to do it. Money in IRAs is intended for retirement, that's why the IRS penalizes you 10% for early withdrawals prior to age 59 1/2.
You'll likely regret that move years from now when you realize how much that money will have grown had you left it there.Comment
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