401k with drawal
I am about to turn 591/2. We have over $300k in our 401k. I am thinking about taking some of this money (50k) and paying all me bills off (house and cars) to be debt free. I still have 6 years of work to recoup this money by investing the money I was spending on cars and house back into my 401k. Is this a good idea or not. I have asked alot of people and everyone has their own Ideas!
Terry Says
I think it’s a terrible idea — that’s my personal and professional opinion. First, you’ll have to pay taxes on this withdrawal. Second, you’ll lose years of tax-deferred growth since it will be out of the account.
Better solution: Get an extra job to pay off all outstanding bills!
