UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 265877  
Subject: Re: 2nd Mortgage/retirement funds ? Date: 1/3/2013 7:59 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
You have to have at least $40k in original contributions in order to be able to execute this plan. If you take out your earnings (value of the Roth over and above your contributions), you will be hit with a penalty. As for paying back to the Roth IRA, you have 60 days to return your original contributions. After that, you can only pay back $5000/yr ($6000 if over age 50). You would have to make an absolute commitment to yourself to rebuild your retirement savings.

What is the rate of your first mortgage you wish to refinance? Based on the difference between that and the new rate, will it take you more than 30 months to pay off the closing costs with the savings? If not, then you may want to shop for a better refi deal. If you haven't checked out a credit union, definitely do so before making any decisions.

Would I do this? Probably not. The lost retirement savings is significant, so this would be last choice for me. Is it that you cannot afford the mortgages or are you just trying to ease the payments? Do you have other retirement savings? How long do you have to rebuild your retirement savings? These questions may have an impact on your decision as well.

Fuskie
Who thinks if you can make everything work as you described, it is possible to be successful with your plan, but there is a lot of risk to it as well...
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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