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This question is mostly for fun. But who knows?
ok
36 months 45,000 to pay off mortgage.
Ride it out? Or withdraw the amount from Roth and be done with the mortgage. Then let Roth replenish itself over 4 years. Invest my mortgage amount ?
why shouldn't I do this?
why should I?
what would you do?
readyyyyyyyyy, go!
See, that's just it. Let's say, 20 years before I tap into the Roth. how much do I lose by subtracting that amount? Sometimes I just want piece of mind, and would rather just pay it off. (and invest in the market).
You pay penalty and you'll be selling at lower prices (-8%) if you cash out.
What you would rather do if you have discipline is don't fund the IRA anymore and just do a self-direct "retirement" account going forward, that way, in the event you have an emergency need, you can withdraw without penalty.
See, that's just it. Let's say, 20 years before I tap into the Roth. how much do I lose by subtracting that amount? Sometimes I just want piece of mind, and would rather just pay it off. (and invest in the market).
From may 2000-2020 the s&p 500 with dividends reinvested returned 5.5%. 50k turns into 145k under those terms
You pay penalty and you'll be selling at lower prices (-8%) if you cash out.
What you would rather do if you have discipline is don't fund the IRA anymore and just do a self-direct "retirement" account going forward, that way, in the event you have an emergency need, you can withdraw without penalty.
There's never a penalty for withdrawing principal contributions to a Roth regardless of age. We dont know what the OPs contribution basis is but if he has at least 50k to withdraw there's a great chance he's not going to pay a penalty on the majority of that withdraw.
There's never a penalty for withdrawing principal contributions to a Roth regardless of age. We dont know what the OPs contribution basis is but if he has at least 50k to withdraw there's a great chance he's not going to pay a penalty on the majority of that withdraw.
Well never isn’t entirely accurate if you also need nclude roth conversions as a possibility
Well never isn’t entirely accurate if you also need nclude roth conversions as a possibility
A conversion isn't considered a contribution. Completely different as you said and subject to the 5 year rule. When you withdraw from a Roth under 59.5 tax software will ask you for your contribution and conversion basis.
I know you know this and you are just trying to clear the air for those that dont know which is why I said principal contributions.
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Mortgage rate? (Did I miss that?) Kinda important.
I NEVER intend to pay my mortgage off, tho I could have written a check to do so any day of the last 20 yrs.
I will gladly use 3% LT money to earn 9-20% yields on investments.
Run those numbers out 30 + yrs and you really have something! (~$2m / $100k invested at a 12% net gain) Especially if you have a bunch of mortgages at the same time! https://www.bankrate.com/calculators...alculator.aspx
If these are invested in income properties, your tenants have been paying your loans off.. Now (in 30 yrs) you have 100% paid off investment properties + all your accumulated annual gains. And with investment props paid off, you might as well quit working because your tax rate is gonna stink once all those mortgages are paid off and you have 30 yrs depreciation completed. (5) $100k properties would have netted you $10m in 30 yrs, and (5) props should now be worth at least $2.5m, so... head for Tahiti (or Switzerland)
There's never a penalty for withdrawing principal contributions to a Roth regardless of age. We dont know what the OPs contribution basis is but if he has at least 50k to withdraw there's a great chance he's not going to pay a penalty on the majority of that withdraw.
Hmm that must be IRA Roth, which I do not have so yes you could be correct. Prudential 401K Roth carries a penalty unless one is 59.5 and above.
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