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Author: mheusser One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 16  
Subject: Re: Trade IRA for a new roof? Date: 11/10/2008 1:43 PM
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*bump* - So what did you do?

The big problem I would see is that by pulling out now, you pull out at the bottom of the market. That's realizing a lot of paper losses.

I expect that in 6 months, the markets will have regained a good bit of health. Not all, but a good bit.

Another way to look at it is this: If you have revolving credit card debt, you are taking on an automatic 20%-ish LOSS every year. So paying off credit card debt makes sense if your after-tax loss on the money is greater than your expect pre-tax gain. (Is it a Roth? Otherwise, you'll pay a penalty on the way out.)

If you have friends who are handy, you might want to consider buying your own shingles/OSB and throwing party. Then you'd be able to pay off credit cards, get a roof, and keep a couple bucks in the IRA.

Again, I'm curious. It's been a month - what did you do?

--heusser
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