I am the op,I haven't been on for awhile because I 'm back to work.Not making anywhere near what I was but still working for now.The reason I was thinking of paying off my mh was because I'm like the rest of the world,I'm losing money in my IRA & my loan is at 7%.Right now i'm not at ss age so I'm not getting that, but now I don't know if I can count on getting any.My first thought is,take out 10k a yr. & put it to principal.See if that works.
Any income that is not from a W-2 or 1099, or worked for from your personal business, like owneding rental property that pays you income. Another term is passive income. I like passive income because you don't have to get out of bed in the morning. It's when your money is making money for you.
I have a sweet tender nature, however I enjoy sharing my thoughts and opinions.
Fulltiming RVer & homeowner.
chcgm wrote: I am the op,I haven't been on for awhile because I 'm back to work.Not making anywhere near what I was but still working for now.The reason I was thinking of paying off my mh was because I'm like the rest of the world,I'm losing money in my IRA & my loan is at 7%.Right now i'm not at ss age so I'm not getting that, but now I don't know if I can count on getting any.My first thought is,take out 10k a yr. & put it to principal.See if that works.
Well, there's a little information to go on. I would keep making payments on the coach with your income. Do not disturb your IRA. IRA's are only to be raided for dire circumstances like paying your mortgage when you're out of work. Or paying medical bills that you can't pay any other way. People with RVs that cannot pay for them any other way than raiding their IRA are in over their heads, if everything is as you described. Sell the RV, the IRA needs to be preserved to let it re-gain it's value over the next 5 to 10 years, and saved for retirement, not paying for an RV. This downturn is going to be a long one I'm afraid. If I knew more about all your numbers, I could give a more complete answer.
chcgm wrote: I am the op,I haven't been on for awhile because I 'm back to work.Not making anywhere near what I was but still working for now.The reason I was thinking of paying off my mh was because I'm like the rest of the world,I'm losing money in my IRA & my loan is at 7%.Right now i'm not at ss age so I'm not getting that, but now I don't know if I can count on getting any.My first thought is,take out 10k a yr. & put it to principal.See if that works.
OK. I was just hoping you'd come back with more info.
In your situation, it sounds like you should hold on to your IRA money, but there are a lot of factors to consider.
If you're close to needing it in retirement, it shouldn't have a lot in the stock market, but should be in safer areas. It might not earn much, but you need to preserve your principle.
I wish you well in your financial decisions. You might want to ask your friends for a good certified financial planner to help you out. Give the CFP all of your financial info and make a plan.
When you take the money out, you will be taxed on it. The withholding is 10 percent. If you are under age 59 1/2 there is also a 10 percent penalty (unless it is a ROTH).
Having savings there when you retire is a very good thing, If you can, avoid depleting those savings. Consider budgeting additional money to put against prinicpal and pay down that debt.
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