Cash or loan to buy a house
Is it unwise to take $ out of my ROTH IRA to buy a house? I have other investments, a pension and will take SS in five years.
Terry Says
Why give up tax-FREE growth of your account to buy a home? Unless you think the stock market will not do as well as housing prices in the next 5 years — which is a possibility. So for that immediate issue, you have to evaluate the interest rate you will be paying on the mortgage, the “bargain” you can get on the price of the home vs your expected return on your IRA investments.
But there is really a bigger issue here. This is a decision that depends on your entire financial picture. I’d suggest you meet with a fee-only FIDUCIARY planner who can evaluate the tradeoffs, and help you plan income for your retirement.
Here’s the link to find that kind of advisor you can trust: Pam Krueger Wealthramp – Terry Savage
