Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Cashing out your IRA carries the additional expense of the withdrawal penalty, which is 10% before 59 1/2 (with notable exceptions).

Are first time home purchases included in this? Or are they exempt from the 10% penalty. If they aren't that's going to close this discussion right here.

Have you calculated the CAGR (compound annual growth rate) of his parent's house? House appreciation often sounds better than the actual return, because people rarely compare it to other investments over the same time period.

This is a good idea. I think too often people see the $Sold For Price$ - $Original Purchase Price$ = Gain and don't factor in years owned or $$ for improvements. My biggest argument against a bigger house is that I don't want to heat it and I don't want to clean it and I don't want to pay taxes for rooms/buildings/land I never use. This is challenging, though. His brother is building a monstrous house out in the boonies. And his parents' house is bigger now than it was when he and his brother lived at home.

Thank you for your advice, Gus. I'm definitely going to show it to him.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement