Splitting
My partner and I of 25 years are parting on very friendly terms. We have agreed I will buy her out ($175k). We are both retired and I have $700k in my retirement acct and she is over $1.25m.
I currently work a minimum wage job I enjoy and SS has done a clawback, cutting my monthly pay to $1k/mo. Not my finest hour here.
My IRA is pre-tax money, as is hers and we are clients of the same investment person. What is my best bet for paying her? Get penalized taking it out of there or get a mortgage? Would I even qualify? My thankz to you for your consideration.
Terry Says
I am going to refer you to David Hochberg at https://56david.com/ He is my trusted and most creative mortgage expert. If there is a way to withdraw equity to buy her out, he will come up with this.
It doesn’t make sense to take money out of your retirement account, pay taxes on it, and lose all future growth just to buy her out–unless she is willing to take a significant “haircut” on the value!
Of course, plan B is to simply sell the property and divide the proceeds — and start over!
