Use “orphan” Roth IRA to pay down credit card debt?
Hi Terry
My question. I have a Roth IRA account with Charles Schwab with $1,136.00 in it, but I can’t contribute because of the tax laws. Should I close the account and us the money for debt? or invest the money in a ETF, Mutual Fund or a Target Date Fund?
I have a 457b with my job that I contribute and a pension plan when I retire. I plan to work other 12 years. I do have debt, two cars, a credit card and a mortgage.
Any advice I’d really appreciate.
Thank you
Terry Says
OK, I rarely suggest this — but take the money and pay down your credit card debt which is likely costing you a lot more than what you can earn on this money invested. BUT — be strong. Take the credit card out of your wallet! Don’t do that again. But do pay double the minimum monthly payment on all your remaining credit cards every month to get out from under faster!
