Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The Roth is the best thing going. Never pull money out of the Roth. Leave it there and buy some stock instead. The Roth is the last place you want to withdraw money from. Mortgage rates are rock bottom.
It does not compute 45K mortgage 3.25% 3 years UNLESS you are paying down the mortgage.
How much is your monthly bill from the bank?
I dunno bro, all I know is I got 36 months, and 45 G's to go. 15 an change per month without taxes etc. But this really has nothing to do with the equation, does it?
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,711 posts, read 58,042,598 times
Reputation: 46177
Quote:
Originally Posted by grouse789
I dunno bro, all I know is I got 36 months, and 45 G's to go. 15 an change per month without taxes etc. But this really has nothing to do with the equation, does it?
At some point on a declining mortgage, your true monthly 'cost of funds' goes upside down.
ie... $1500 monthly payment at 3.25% will get you $350k on a 30 yr amortization (or $265k on 20 yr amort)
$45K w/3 yrs @ $1500 / month is equivalent of paying over 15% interest.
Drum up the cash and pay it off (I wouldn't rob the Roth, since it grows tax free and you cannot just drop $45k back in it at a later date).
One thing I have thought about. I'm 67 and take out 3000 a month from Ira, I don't always need it. I also put 25000 in my Roth yearly. I have really thought about putting in 60000 a year in Ira and take smaller amounts out. I could have dividends sent to me tax free. I have 1m in Ira and a pentation plus have 25000 coming in 3 years from SS. Plus a fun job with about 10000 a year. I live on about 3500 a month. I would only take out of my Roth not Ira. (most people say no don't but I think a Roth could be used as tax free stream kind of like my own annuity).
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,711 posts, read 58,042,598 times
Reputation: 46177
Quote:
Originally Posted by hulburt1
One thing I have thought about. I'm 67 and take out 3000 a month from Ira, I don't always need it. I also put 25000 in my Roth yearly. I have really thought about putting in 60000 a year in Ira and take smaller amounts out. I could have dividends sent to me tax free. I have 1m in Ira and a pentation plus have 25000 coming in 3 years from SS. Plus a fun job with about 10000 a year. I live on about 3500 a month. I would only take out of my Roth not Ira. (most people say no don't but I think a Roth could be used as tax free stream kind of like my own annuity).
I'm confused.... ($1m Ira and $25k annual Roth and $60k Ira references) maybe you have $1m in a Tira and taking $3k out of Tira monthly and 'converting' $25k / yr to Roth (or doing the allowed $7k + a $18k Tira > Roth conversion ) so many options.
If you are age 67 and have $1m in a Tira, you are looking at RMD's in 5 yrs. So... based on your tax rate now vs future... you may want to be raiding the Tira for any income needs pre RMD. (as well as Roth conversions as make tax sense). Taking distributions from a Roth instead of a Tira pre age 72 would need to show me the tax implications / income streams in each case.
I tend to 'shelter' my Roth for future benefit / flexibility, and for my highest gain holdings.
Doing a RMD simulation indicated I needed to lean down the Tira pre age 72, and it is far less than $1m. By doing Roth conversions and draining Tira down pre age 72, I added ~280k to my EoL projected portfolio valuation.
It looks like there is a path of repayment of the Withdrawal due to Covid. Everyone saying not to do it should at least understand the special circumstances currently and the math behind the projections
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
) so many options.
