Retired , I want to buy an $80K RV.
Hi Terry, big fan and have your book. I’m retired, 70, no pension, taking SSA payment and 2K a month from IRA, $1.6M in IRA earning about 6.5%. Also own a small revenue Photography LLC. I have an opportunity to buy a very good cond RV from a relative, which has been a dream of mine for years. I’m concerned about Medicare deductions from SSA and moving into next higher tax bracket if I withdraw the full amount. I’m wondering if a HELOC, and pay it back over +/- 3 years (condo FMV $300k/$140k balance) or take the full 80K hit at one time and pull $95K to cover taxes and deal with the big Medicare deduction to SSA for one year? My accountant thinks do the HELOC for 3 years and pay it back asap. I’m stuck! Thank you very much for any advice!
Terry Says
Wow, you must REALLY want this RV! I’d suggest waiting four months and see what happens in the economy. I’m betting there will be a lot of RVs on the lots if we have an economic slowdown. As an alternative, why not just put $5,000 down from savings and pay your relative off over 3 years, with 5% interest. That will be cheaper and won’t put your home on the line. And it’s a good rate of return for your relative. Be sure to decide who maintains the insurance, and get an attorney to document this deal if you do it.
