RD-Sam
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skyline":3czyb0n0 said:Stocker Steve":3czyb0n0 said:For some folks this is just a paper loss of assets they do not need, and would end up being willed so someone else in their estate.
For most folks who don't buy lottery tickets - - this is or was part of their retirement plan and now they are going to have to revisit that.
I'm 47. For me, it was the bulk of my retirement and my ability to survive when I'm too feeble minded to work my regular job (the feeble minded part seems like it might be coming sooner than later... ).
I started pondering the idea last night of cashing in my 401k and paying off my house note. What's to lose? I'd pay a 10% penalty on the 50% of the account that is left. There won't be much in the way of capital gains to pay, and I hear those are going up at some point anyway... Is that a stupid idea? At least I'd be assured they don't take the house from me when all heck breaks loose.
It's pretty simple, look at the interest you will save on the house note vs. how long it will take to make anything in a 401k plan. I have heard a few say it will take 25 years to recover what was lost in the 401k programs. Also, in tough times, if it's paid for you don't have to worry about it. Look for other right offs to make up for the house on year end.