Yes, you read correctly, i want to cash out my IRA....
Here is why. We have been saving money to move out of town and to the country. In the area we live in, country properties/farms go for alot of money. esp. if there is a few acres attached(which is what we want) anyways, we have about 17K in our savings acct right now. We have a truck loan out on our truck we bought last year and im paying an extra 200 month on it right now to get it paid off sooner. Well, it really bugs me that we have all this money sitting in savings when im paying 5% interst on our truck loan for 15K!!! So i want to take 15K out of savings and pay the truck off. Then the only debt we would have besides our mortgage is we owe our MIL about 13K. She loaned us the money for our adoption. (which isnt cheap)a few years ago. With the amount im paying her back we will never get it paid off. So, i really was thinking that we could take the 2k left over from savings, and i have 5K in my roth IRA and that would make 7K. If we paid her that 7K, when tax time comes, we are gettting back another 5800 from our adoption tax credit. That would pretty much almost pay her off. and i could find a few hundred extra dollers to pay her every month until then because the truck would be paid off. Then we would be free and clear and start over in a nice country property where i plan on broodening my self sufficiency skills. I do minimal right now because we dont have the room to get animals, have a large garden right now. Anyways, It sounds really really dumb to cash out my IRA, but im only 28, DH is 30. 2 kids. DH is going to have 2 pensions after he retires from the military. He has 13 years in the US army reserves and at his civilian job (which is also thru the military) he has 7 years in. after 20, he earns his full pension benefits. So, im not too concerned about retirement right now. He also has 7% of his pay going into his retirement acct and the gov. matches 5%.
So, is it really stupid to cash it out when it can help eliminate my debt?? I HATE having debt!! We would be left with only 1500Cash that i have in my sock drawer right now for an emergency fund, but on the other hand, we can save up money really quickly once we have all that stuff paid off. we will free up $700 month by not having the truck payment and payment to my MIL. DH doesnt think its a good idea to pay this stuff off. He wants to just save it all for the new house.
Oh yeah, and we are getting a VA loan, so we dont HAVE to have a down payment. we ideally would like to have at least 10% down, + Closing costs, but if something came up and we didnt have that much we wouldnt NEED that to buy the house.
Any thoughts??? Its not like the stock market is doing crap.... might as well take my money out before I loss more of it....??? Thanks, Rach
Here is why. We have been saving money to move out of town and to the country. In the area we live in, country properties/farms go for alot of money. esp. if there is a few acres attached(which is what we want) anyways, we have about 17K in our savings acct right now. We have a truck loan out on our truck we bought last year and im paying an extra 200 month on it right now to get it paid off sooner. Well, it really bugs me that we have all this money sitting in savings when im paying 5% interst on our truck loan for 15K!!! So i want to take 15K out of savings and pay the truck off. Then the only debt we would have besides our mortgage is we owe our MIL about 13K. She loaned us the money for our adoption. (which isnt cheap)a few years ago. With the amount im paying her back we will never get it paid off. So, i really was thinking that we could take the 2k left over from savings, and i have 5K in my roth IRA and that would make 7K. If we paid her that 7K, when tax time comes, we are gettting back another 5800 from our adoption tax credit. That would pretty much almost pay her off. and i could find a few hundred extra dollers to pay her every month until then because the truck would be paid off. Then we would be free and clear and start over in a nice country property where i plan on broodening my self sufficiency skills. I do minimal right now because we dont have the room to get animals, have a large garden right now. Anyways, It sounds really really dumb to cash out my IRA, but im only 28, DH is 30. 2 kids. DH is going to have 2 pensions after he retires from the military. He has 13 years in the US army reserves and at his civilian job (which is also thru the military) he has 7 years in. after 20, he earns his full pension benefits. So, im not too concerned about retirement right now. He also has 7% of his pay going into his retirement acct and the gov. matches 5%.
So, is it really stupid to cash it out when it can help eliminate my debt?? I HATE having debt!! We would be left with only 1500Cash that i have in my sock drawer right now for an emergency fund, but on the other hand, we can save up money really quickly once we have all that stuff paid off. we will free up $700 month by not having the truck payment and payment to my MIL. DH doesnt think its a good idea to pay this stuff off. He wants to just save it all for the new house.
Oh yeah, and we are getting a VA loan, so we dont HAVE to have a down payment. we ideally would like to have at least 10% down, + Closing costs, but if something came up and we didnt have that much we wouldnt NEED that to buy the house.
Any thoughts??? Its not like the stock market is doing crap.... might as well take my money out before I loss more of it....??? Thanks, Rach