Hi all, thanks for taking a look.
Me: Married, 46 with a 4 year old. Working in the family business (husband's contracting firm) while I homeschool my son and renovate our fixer-upper.
I quit my FT job in the fall of 2014 and my income now is half what it was then.
I have $35k in an IRA that I'm no longer contributing to. I will most likely never work at another organization/company that provides IRA/401K benefits.
I'm more and more convinced that the market is going to shit the bed again and would rather not lose the gains the IRA has made - especially in the last year.
What are your thoughts on my cashing in the IRA, taking the 10% penalty, and buying an investment property? It's not a huge chunk of money and I feel like I could use it more effectively with a rental property.
Our only debt is the mortgage on this fixer-upper at 3.2 % fixed.
Am I off base?
Also, if I cash out and have ~$30k to invest, will that be taxed as income? Is there any way to avoid that?
Many thanks for your input!