Home Forums Hunting & Shooting Hunter's Campfire Need financial advise

Everybody's situation is different. In the past I had the ability to pay off a mortgage and be totally debt free. I carefully weighed the decision and chose NOT to do it.

It worked out well, for me.

I will preface my comment by stating that, when it comes to investing, my usual strategy is to do the exact wrong thing at the exact worst time.

However, I did just about exactly what you are talking about this year. I closed relatively small 401K's and 403B's and paid off a second mortgage and most of the first mortgage on my primary home. I have no other debt. I should be able to pay off the remaining balance on my home in less than 2 years.

I have an adequate but not extravagant retirement income and was tired of riding the stock market roller coaster.

Only you can make this decision and you must weigh it carefully. In my case, I sleep better at night, have more money in my pocket each month and am looking forward to being completely debt free next year.

And consider the value of your 403b is not a fixed amount, ie if the stock market takes a big dip again, your assets may not be enough to do whatever option is suggested by your hired consultant.....


But the loans are pretty fixed.... so if your stocks have recovered substantially, now may be the time to decide.I have made %14 back YTD ( 403b) , and I am still behind what I had 2 yrs ago.


Good luck, and let us know what you learn.


Allen

Not too hard to significantly beat 5 1/4% in the markets. Let the bank continue to give you relativley cheap money to do so. That's what I do.

I used to be all about 401ks and the like but anymore, I just don't have confidence in the direction we're heading. I went from saving 15%/year to the minimum to get a full match (4%).

For someone to take a "bird in the hand" and put it towards their house, I'd say go for it. With the insane fluctuations we're experiencing anymore, a safe harbor makes more and more sense. Could you gain more in the market? Probably. But, you could lose your azz too.....and fast.

I'd sleep a lot better in a paid off house if it were me!

Robbing your 4o3B will be the dumbest move you ever made.

+1

I would say sell one of your houses...you don't need two, and certainly not two mortgages.

The penalties are pretty steep on robbing the 403B i believe. Taking money from a 401 for instance gets hit with a 10% penalty and then increases your tax rate, usually up to around 30%. So you end up giving the government 40% of your savings to use it. Of course everyones situation is different. Might be better to wait until you can withdraw the money under a retirement scenerio and avoid the penalty and potentially avoid the higher tax rate?

Do what is mathematically right unless its nearly even. Sounds like you have it all under control.

You are over 59 and a half so no 10% penalty. However I don't like the idea of robbing a 401k to pay off a low interest short term mortgage.

Stay away from "free" financial advisers/planners, they are anything but free. Sit down with your CPA,or EA and pay the hourly fee. Personally I wouldn't pay it off.

Gettin rid of the debt would be great, but if you have to pay a penalty to do so, it wouldn't make sense. Take Issacs advice, spend a little for direction to save a lot. If you dont pay them off, check into refinancing as their are some great rates out their. Its all in the numbers have a pro to crunch them to see whats best for you. GW