Yep I've got issues. I'm single, no kids, learned late about money. I don't really care for the stock market, my pop always told me it was gambling (he died broke). Paying interest drives me crazy. And I can't stand that my stupid little IRA account doesn't make anything and my Vanguard Money Market (VMRXX) is just a box to watch my money shrivel. I'm very enthusiastic about the pathway to success offered by MMM way, it makes sense on all levels. I'm risk averse because I've been working f o r e v e r as a paramedic , and I haven't saved anywhere near enough money, and the money I have is stagnant. I really, really like the idea of cashing out my IRA, paying the frickin' taxes on it, use the balance to kill off a 401 k loan and pay my mortgage down, and then refi with a 15 year fixed. All the while chipping away at the wasteful areas of my life in a calm and workmanlike manner. Wow am I excited about this! Wow is it a dangerously risky idea!. The thing is , it would cut my monthly payments by about $700 a month for the next couple years (life of the 401K loan) and $200 thereafter (on the new 3.5% 15 yr fixed) so I'd have xtra $ to pay the house off. Part of my problem is philosophical: How long am I gonna live anyway? If I am alive do I really want to envision a future where I'm hoping to be making so little that its optimal to cash out the IRA in little increments. If I had something to invest in that I believed in, something that was actually good for the Earth, maybe I'd look at it differently, but for now I just want to burn the IRA get the whole tax thing over with, stop worrying, and put myself on a path of debt free home ownership. I've attached a cash flow.
Other pertinents:
1) 60 y.o.
2) IRA = 118,000
3) 401K =15,000 (less 12,000 loan)
4) house value 300K
5)401K offers Schwab products (Schwab Managed Retirement Trust 2010 thru 2050 CIIV
and Vanguard VINIX,VPMAX,VIEIX,VTSNX,VBTIX,VMRXX
Any helpful suggestions?
I am quite resourceful, have many practical skills and creative talents. I intend to make a graceful transition into a career that is even more creative, fun, and rewarding with a lot more free time. Thanks for allowing me to share this personal puzzle. I'm happy to provide more bizarre details if helpful.