No. of Recommendations: 0
H,

Generally, you want to avoid dipping into retirement. While using the money, you would lose out on growth. You may have to pay some penalties. You may also have to pay tax. It can eat up up to 40% of your money. Leave it grow.

You should be building an e-fund as best you can while paying your debt. This is a personal choice. 3-6 months living expenses is commonly suggested. It takes time to build that much though. Debt continues to grow, usually faster than the interest you can earn while saving, even in a Money Market. You might consider paying some ratio of debt/e-fund. 70/30, 85/15, whatever. My personal take is kill the debt as fast as possible, so I was aggressive and had little in the way of an e-fund. Your milage may vary.

If you are having problems, check out the credit board. They are good at helping people figure out good re-payment plans.

Let the retirement be for retirement.

fredinseoul
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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