I have inherited property that I would like to turn into a vacation rental home. It needs upgrading. Is it best to borrow from my 401K, withdraw from my ROTH or borrow against the property?
Terry Says: Well, you don’t want to borrow from your 40l(k) and lose all that future tax-deferred growth. And similarly it’s a shame to withdraw from your Roth. And it will be tough to get a loan against a vacation property. Whatever happened to “saving up” for the project?? You don’t want to let this windfall turn into a huge liability.