There was no penalty last year for 401k withdrawals so if this was being contemplated for a while, should have done it last year.Depends on if there's any penalty. If you have to pay an early withdraw penalty it is not worth it IMO.
There was no penalty last year for 401k withdrawals so if this was being contemplated for a while, should have done it last year.Depends on if there's any penalty. If you have to pay an early withdraw penalty it is not worth it IMO.
That depends on the state, on whether the mortgage was purchase money, whether owner occupied, whether waste was committed on the property, etc....US law allow people to walk away in a foreclosure...
Sure a paid off house is great. And I agree, minimizing risk is a good strategy.I’ll take the contrarian view - pay it off.
Here’s why: risk tolerance and asset allocation are the bedrock of any financial plan. Most of the advice here is how to maximize returns for the OP’s cash flow and investment portfolio while completely ignoring his risk tolerance. Covered calls? Options? These are sophisticated tools that are not suitable for most investors. Sure, we can analyze rates of return and nuanced, effective, portfolio management. None of that matters.
The OP stated, clearly, that he would feel better with a paid off house. He will sleep better with it paid off.
That’s a very clear, and very different than the presumptive, risk tolerance, that is missing from all the other posts.
We’re talking $29,000 here, right? Pay it off, sleep well, and don’t worry about a few percentages one way or the other on what is really, economy car money, not millions in a portfolio.
Depends on if there's any penalty. If you have to pay an early withdraw penalty it is not worth it IMO.
I'm still not convinced that the op was taking money out of the 401k... although re-re-reading his post, it does sound like he wanted to both take some money out AND contribute less, now that I've read it for a sixth time.
This 401(k) was from my first two jobs, early in my career. I have it invested with Vanguard, and literally play around with it.
Covered calls are simple, safe, conservative gains. Knowing about them and utilizing them is not common knowledge but i would liken it to having your oil filter part numbers, oil grades and quantities memorized when you walk into the parts store. And doing your own oil change with the parts.I’ll take the contrarian view - pay it off.
Here’s why: risk tolerance and asset allocation are the bedrock of any financial plan. Most of the advice here is how to maximize returns for the OP’s cash flow and investment portfolio while completely ignoring his risk tolerance. Covered calls? Options? These are sophisticated tools that are not suitable for most investors. Sure, we can analyze rates of return and nuanced, effective, portfolio management. None of that matters.