Author Topic: Withdraw Roth contributions to pay off a debt?  (Read 9212 times)

mbjerry

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Withdraw Roth contributions to pay off a debt?
« on: October 26, 2017, 12:22:14 PM »
Is it ever a good idea to withdraw Roth contributions to pay off a debt? I am 34, my salary is $130k, have 150k in my 401k. I recently jumped on the MMM train but have been following Dave Ramsey for a year or so now and paid off a considerable amount of debt. I know Dave says this is a no-no but the MMM stance? Pros and Cons?

My 3 remaining debts are my house ($150k) and two cars ($25k each). I can withdraw $25k from Roth contributions and pay off 1 vehicle.

Kapiira

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #1 on: October 26, 2017, 01:06:15 PM »
Depending on what your interest rates are, it's questionable as to whether you should be paying these loans off at all.  I certainly wouldn't pull money from your Roth to do it.  Keep that tax-free revenue source where it is.


marielle

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #2 on: October 26, 2017, 01:08:41 PM »
No. Definitely not. Not even if the interest rate is 20%. Why do you have two $25k cars? Sell both and buy one that you can actually afford in cash.

frugaliknowit

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #3 on: October 26, 2017, 01:13:33 PM »
You can never put the roth money back...so NO!

Kill the car notes (and maybe the cars), not the roth!

Frankies Girl

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #4 on: October 26, 2017, 01:13:39 PM »
Not really a good idea at all, really the only reason would be if you had hair on fire debts - super high interest rates on consumer debt like credit cards or the like, it maybe maybe a slightly less horrible idea to pull out money from a Roth.


But for housing (usually with low interest rates and you're locking up money into a non liquid asset) it's a better idea to keep paying it on schedule. Never would consider it for this at all.

Car loans, same thing, but cars are a depreciating asset, so even worse idea. If you've got a rate below 5% then just keep paying it down as normal, and if you get a bonus or find a way to cut back on expenses, then throw the extra $ at the loan. (and that's where you should be focusing - cutting expenses and hitting those car loans, but holy shit yeah, why do you have two vehicles with that much in loans?)

Once you pull money out of a retirement account (like a Roth) you can't put it back in. You're only allowed $5,500 per year, so robbing yourself of that money's long-term, tax deferred growth potential to pay back a loan that isn't an emergency is a pretty terrible idea.

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #5 on: October 26, 2017, 01:27:56 PM »
I really appreciate the advice. Interest rates on the two cars is 1.9%. I know I shouldn't have two expensive cars but I made that mistake before I changed my ways so water under the bridge. I must have two cars right now as I commute 45 mins and need to leave some transportation at home for the wife and baby on the way. I know I should sell the vehicles and purchase cars that are much cheaper.

Thanks for reminding me I would be robbing an account that has restrictions on how fast I can replace it. I guess I knew this was a bad idea but really helps to hear others remind of all the reasons why it is.

FINate

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #6 on: October 26, 2017, 01:28:19 PM »
Agree with the others here: Terrible idea, don't do it!

Also second selling your cars and buying one(s) for cash.  Older/cheaper cars have already deprecated a lot so your Net Worth will be happier long term. And since you own outright, you can decrease insurance costs.

SuperSecretName

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #7 on: October 26, 2017, 01:42:19 PM »
oh god no.  now that you are out of serious debt, stop listening to dave ramsey.

boarder42

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #8 on: October 26, 2017, 01:56:43 PM »
I really appreciate the advice. Interest rates on the two cars is 1.9%. I know I shouldn't have two expensive cars but I made that mistake before I changed my ways so water under the bridge. I must have two cars right now as I commute 45 mins and need to leave some transportation at home for the wife and baby on the way. I know I should sell the vehicles and purchase cars that are much cheaper.

Thanks for reminding me I would be robbing an account that has restrictions on how fast I can replace it. I guess I knew this was a bad idea but really helps to hear others remind of all the reasons why it is.

If you wouldnt do it now then you should sell it and get something better.  its never to early to corect a mistake. 

You sound like you should write a case study - get some advice and face punches and start making some real lifestyle changes - you have an enormous income and a reasonable balance on your mortgage you could be FIRE in very short order.  First step ditch the clown cars

i'm one of the few who would say its OK to finance the new to you cars just dont let it inflate what you spend on them.  interest rates are low

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #9 on: October 26, 2017, 01:59:04 PM »
I agree 100%... case study will be coming after this month. First month tracking every expense!

I really appreciate the advice. Interest rates on the two cars is 1.9%. I know I shouldn't have two expensive cars but I made that mistake before I changed my ways so water under the bridge. I must have two cars right now as I commute 45 mins and need to leave some transportation at home for the wife and baby on the way. I know I should sell the vehicles and purchase cars that are much cheaper.

Thanks for reminding me I would be robbing an account that has restrictions on how fast I can replace it. I guess I knew this was a bad idea but really helps to hear others remind of all the reasons why it is.

If you wouldnt do it now then you should sell it and get something better.  its never to early to corect a mistake. 

You sound like you should write a case study - get some advice and face punches and start making some real lifestyle changes - you have an enormous income and a reasonable balance on your mortgage you could be FIRE in very short order.  First step ditch the clown cars

i'm one of the few who would say its OK to finance the new to you cars just dont let it inflate what you spend on them.  interest rates are low

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #10 on: October 26, 2017, 02:13:30 PM »
Interest rates on the two cars is 1.9%.

This is less than inflation over the last year. Practically free money. Not only should you not be raiding your retirement accounts to pay off these debts but you should be making the absolute minimum payments possible.

Whether you actually keep the cars is a separate question, of course. You should be much more worried about depreciation costs right now than how much you're paying in interest.

boarder42

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #11 on: October 26, 2017, 02:20:45 PM »
also now that you're here and you're in a GOOD debt situation(minus the fact that you should sell the cars)

Forget everything ramsey has told you - hes good at debt paydown he is awful at everything else - really awful.

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #12 on: October 26, 2017, 05:31:19 PM »
Interest rates on the two cars is 1.9%.

This is less than inflation over the last year. Practically free money. Not only should you not be raiding your retirement accounts to pay off these debts but you should be making the absolute minimum payments possible.

Whether you actually keep the cars is a separate question, of course. You should be much more worried about depreciation costs right now than how much you're paying in interest.
Interesting. Thanks.


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mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #13 on: October 26, 2017, 05:32:35 PM »
also now that you're here and you're in a GOOD debt situation(minus the fact that you should sell the cars)

Forget everything ramsey has told you - hes good at debt paydown he is awful at everything else - really awful.
Seems like I have been seeing that a lot lately as I dig into this more seriously. Will be looking forward to learning why.


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Dicey

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #14 on: October 26, 2017, 06:26:51 PM »
Nope, Nope, Nope! Putting it back is not an option, as others have mentioned. Bad, very bad idea.

What's the interest rate on your mortgage? Also loan balance vs. guesstimated market value?

I'm not gonna comment on the cars, except to say that 1.99% is a damn good rate. You can make more by investing the money elsewhere.

I'll wait...

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #15 on: October 26, 2017, 07:25:34 PM »
Nope, Nope, Nope! Putting it back is not an option, as others have mentioned. Bad, very bad idea.

What's the interest rate on your mortgage? Also loan balance vs. guesstimated market value?

I'm not gonna comment on the cars, except to say that 1.99% is a damn good rate. You can make more by investing the money elsewhere.

I'll wait...
Mortgage Interest rate is 3.9%. Loan balance of $155 vs $175 market.


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Dicey

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #16 on: October 26, 2017, 08:58:34 PM »
Nope, Nope, Nope! Putting it back is not an option, as others have mentioned. Bad, very bad idea.

What's the interest rate on your mortgage? Also loan balance vs. guesstimated market value?

I'm not gonna comment on the cars, except to say that 1.99% is a damn good rate. You can make more by investing the money elsewhere.

I'll wait...
Mortgage Interest rate is 3.9%. Loan balance of $155 vs $175 market.
Wait - did you buy this house with nothing down? Are you paying for Mortgage Insurance?
It's not gonna change my answer much, but it's good to know.

MDM

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #17 on: October 27, 2017, 04:13:32 AM »
No. Definitely not.
Agreed, given the low rates on OP's loans.

Quote
Not even if the interest rate is 20%.
Might not go that far. ;)  Here's why.

Assume
- $10K loan at 20% paid in 3 years,
- $10K in a Roth
- Investments pay 2% in dividends and 5% growth
- $371.64/mo after-tax cash flow available
- Dividends and capital gains taxed at 15% in taxable accounts.

Scenario 1:
- No other Roth funding is available: if the loan is being paid with the $371.64/mo, no more goes into the Roth.
a) Keep the $10K in the Roth.  After 3 years, the loan is paid and there is $12,329 in the Roth.
b) Withdraw the $10K and pay the loan immediately.  Replenish the Roth with $371.64/mo.  After 3 years, the loan is paid and there is $14,926 in the Roth.
Withdrawing from the Roth and paying the loan is better.

Scenario 2:
- Other Roth funding is available: the $371.64/mo either pays the loan or goes into taxable investments.
a) Keep the $10K in the Roth.  After 3 years, the loan is paid, there is $12,329 in the Roth, and $0 in taxable.
b) Pay the loan immediately.  Invest taxably with $371.64/mo.  After 3 years, the loan is paid, $0 in Roth, and $14,855 in taxable ($14,690 after tax if withdrawn).

Now the question becomes, how long must one wait until the tax free growth in the Roth overtakes the taxable account?
Starting with $12,329 in the Roth, and $14,690 in taxable, it takes ~26 years.  That's a rather long payback period, so I'd probably still vote to withdraw and pay, but it's at least debatable.

marielle

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #18 on: October 27, 2017, 06:15:55 AM »
No. Definitely not.
Agreed, given the low rates on OP's loans.

Quote
Not even if the interest rate is 20%.
Might not go that far. ;)  Here's why.

Assume
- $10K loan at 20% paid in 3 years,
- $10K in a Roth
- Investments pay 2% in dividends and 5% growth
- $371.64/mo after-tax cash flow available
- Dividends and capital gains taxed at 15% in taxable accounts.

Scenario 1:
- No other Roth funding is available: if the loan is being paid with the $371.64/mo, no more goes into the Roth.
a) Keep the $10K in the Roth.  After 3 years, the loan is paid and there is $12,329 in the Roth.
b) Withdraw the $10K and pay the loan immediately.  Replenish the Roth with $371.64/mo.  After 3 years, the loan is paid and there is $14,926 in the Roth.
Withdrawing from the Roth and paying the loan is better.

Scenario 2:
- Other Roth funding is available: the $371.64/mo either pays the loan or goes into taxable investments.
a) Keep the $10K in the Roth.  After 3 years, the loan is paid, there is $12,329 in the Roth, and $0 in taxable.
b) Pay the loan immediately.  Invest taxably with $371.64/mo.  After 3 years, the loan is paid, $0 in Roth, and $14,855 in taxable ($14,690 after tax if withdrawn).

Now the question becomes, how long must one wait until the tax free growth in the Roth overtakes the taxable account?
Starting with $12,329 in the Roth, and $14,690 in taxable, it takes ~26 years.  That's a rather long payback period, so I'd probably still vote to withdraw and pay, but it's at least debatable.

Thanks for the analysis! I only said not to because the loans were for $25k cars and the solution is not to have those cars. In some other scenario like hair-on-fire debt where you can't sell what you owe on, I would agree.

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #19 on: October 27, 2017, 06:20:18 AM »
Nope, Nope, Nope! Putting it back is not an option, as others have mentioned. Bad, very bad idea.

What's the interest rate on your mortgage? Also loan balance vs. guesstimated market value?

I'm not gonna comment on the cars, except to say that 1.99% is a damn good rate. You can make more by investing the money elsewhere.

I'll wait...
Mortgage Interest rate is 3.9%. Loan balance of $155 vs $175 market.
Wait - did you buy this house with nothing down? Are you paying for Mortgage Insurance?
It's not gonna change my answer much, but it's good to know.
5% down. Purchased last year. Almost done with remodel that we have cash flowed that and done ourselves. Will raise value to $200k. Will be close to PMI removal next year.


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Dezrah

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #20 on: October 27, 2017, 08:42:29 AM »
OP, since you're a bit more mainstream than MMM right now (that's okay, you can get there) take a minute to read through Fidelity's retirement milestone guide.  Think of it as the bare minimum to get a "normal" retirement.

https://www.fidelity.com/viewpoints/retirement/how-much-money-do-i-need-to-retire

At 34, you should have about 1.8x your salary saved for retirement.  Right now you only have $150k/$130k or 1.15x.  You should be closer to $234k right now.  You are behind.

Don't get me wrong, you're still in a better position than most people.  Cash-flowing a remodel is admirable, but you're not in a position where you can be floating $50k in car debt. 

Proud Foot

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #21 on: October 27, 2017, 02:31:49 PM »
Is it ever a good idea to withdraw Roth contributions to pay off a debt? I am 34, my salary is $130k, have 150k in my 401k. I recently jumped on the MMM train but have been following Dave Ramsey for a year or so now and paid off a considerable amount of debt. I know Dave says this is a no-no but the MMM stance? Pros and Cons?

My 3 remaining debts are my house ($150k) and two cars ($25k each). I can withdraw $25k from Roth contributions and pay off 1 vehicle.

With your salary and the interest rates Dave is actually right on this one.  Others above have pointed out why pulling from your Roth is a bad idea but you make $130K! If you want the car loans gone you should be able to get that done fairly quick.

At the rates your debts are you should really read through MDM's investment order and reasons and apply it to your situation.

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #22 on: October 27, 2017, 05:15:01 PM »
Thanks for the link! Definitely not going to make the mistake of withdrawing any Roth funds to pay debt.


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mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #23 on: October 27, 2017, 05:23:12 PM »
Is it ever a good idea to withdraw Roth contributions to pay off a debt? I am 34, my salary is $130k, have 150k in my 401k. I recently jumped on the MMM train but have been following Dave Ramsey for a year or so now and paid off a considerable amount of debt. I know Dave says this is a no-no but the MMM stance? Pros and Cons?

My 3 remaining debts are my house ($150k) and two cars ($25k each). I can withdraw $25k from Roth contributions and pay off 1 vehicle.

With your salary and the interest rates Dave is actually right on this one.  Others above have pointed out why pulling from your Roth is a bad idea but you make $130K! If you want the car loans gone you should be able to get that done fairly quick.

At the rates your debts are you should really read through MDM's investment order and reasons and apply it to your situation.
When I follow the link I don’t see the investment order for US. Where am I missing it at? Thanks.


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MDM

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #24 on: October 27, 2017, 08:29:52 PM »
At the rates your debts are you should really read through MDM's investment order and reasons and apply it to your situation.
When I follow the link I donít see the investment order for US. Where am I missing it at? Thanks.
Don't know.  It comes right up when I click on Proud Foot's link.  What do you see?

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #25 on: October 27, 2017, 08:37:11 PM »
At the rates your debts are you should really read through MDM's investment order and reasons and apply it to your situation.
When I follow the link I don’t see the investment order for US. Where am I missing it at? Thanks.
Don't know.  It comes right up when I click on Proud Foot's link.  What do you see?
It jumps right from the thread topic into your post.


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mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #26 on: October 27, 2017, 08:43:00 PM »
OP, since you're a bit more mainstream than MMM right now (that's okay, you can get there) take a minute to read through Fidelity's retirement milestone guide.  Think of it as the bare minimum to get a "normal" retirement.

https://www.fidelity.com/viewpoints/retirement/how-much-money-do-i-need-to-retire

At 34, you should have about 1.8x your salary saved for retirement.  Right now you only have $150k/$130k or 1.15x.  You should be closer to $234k right now.  You are behind.

Don't get me wrong, you're still in a better position than most people.  Cash-flowing a remodel is admirable, but you're not in a position where you can be floating $50k in car debt.
Thanks for the link. Really glad I found MMM. Really enjoying the articles and forum. Just in the month of October I have made considerable MMM changes.


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MDM

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #27 on: October 27, 2017, 08:50:59 PM »
Don't know.  It comes right up when I click on Proud Foot's link.  What do you see?
It jumps right from the thread topic into your post.
That is what the link is supposed to do: it is a link to a specific post, not the top of the thread.

surfhb

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #28 on: October 27, 2017, 08:54:08 PM »
With that kind of income and your low mortgage you should be able to be debt free within 3 years.    You can do it!!

Dicey

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #29 on: October 27, 2017, 09:52:00 PM »
Thanks for answering my questions, mbjerry. Here are my thoughts, based on what we know so far:

The number one way to FIRE is to start saving and investing early. Your income is high enough and your interest rates are low enough that you can pay these things off in the next year or two. Keep your money in the market. Everything, not just the Roths, but most especially the Roths.

You've gotten ahead of yourself in two ways. You didn't wait until you had 20% down to buy a house and you bought expensive, by MMM standards, cars. The good news is you bought an affordable house, you've apparently paid off whatever CC and SL's you might have had and your car and mortgage rates are dirt cheap.

Discovering MMM is so cool that it is understandable and admirable that you want to get out of debt asap. But not all debt is bad debt. Some of it can be used as a tool to create wealth. The rich do it all the time.  Distract yourself from the urge to do something sub-optimal by focusing on ratcheting down your day-to-day expenses and cranking up your savings rates so you can invest more, shitcan the MI, and pay off the cars as fast as possible. You're gonna kill it.

I personally have no opinion about what you choose to do about your cars. As a family of "buy reasonable cars new, maintain them ourselves, drive as little as necessary and keep them a long, long time" people, I know that this strategy can also pay handsome dividends. If your hair was on fire, I'd have a different opinion, but clearly it's not.

Your investment account balances are admirable. I also have a bit of an issue with the formula from Fidelity that Dezrah linked to. You haven't always been earning this much. If you took an average of your earnings since you started working and used that to calculate your savings, I think you'd be far less "behind" than some would have you think. It's Fidelity's job to scare you into saving more because they want your money. This formula also completely fails to give you any credit for buying an affordable house and adding value through sweat equity. Another wrinkle is that you are most likely going to live on far less than you're earning now when you're FIRE. Fidelity (and most of the rest of the investment world) assumes that you're going to need some huge percentage of your highest income in retirement. It just ain't so, if you study hard and become an expert mustachian.

Watch/listen to me shout: MBJERRY, YOU ARE NOT BEHIND!!!

Dicey fun facts:
1. Never started a Roth when they were introduced because I was
2. saving to buy a house.
3. I had a year's salary in the bank, but I wanted a cushion so I
4. could make the improvements it needed
5. by myself
6. without running up my credit cards, so I
7. only put 10% down on my first house and
8. paid PMI, as it was called then.
9. I didn't start investing until after I bought my first house at age 30.
10. I got to FIRE. I am the Commander in Chief of a bigger army of green soldiers than I ever dreamed possible.

Oh, and the mortgage interest rate for top scorers was probably somewhere around 8% back then, which is what I paid happily, can you imagine that?

Mbjerry, you can get there, with one hand tied behind your back. This might be exactly where that hand needs to be to keep from shooting yourself in the foot. Back away slowly from the Roths and focus on the abundance of low-hanging fruit that surrounds you.

Your not-too-far-in-the-distance self is going to be so damn happy!

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #30 on: October 28, 2017, 08:23:32 AM »
Thanks for answering my questions, mbjerry. Here are my thoughts, based on what we know so far:

The number one way to FIRE is to start saving and investing early. Your income is high enough and your interest rates are low enough that you can pay these things off in the next year or two. Keep your money in the market. Everything, not just the Roths, but most especially the Roths.

You've gotten ahead of yourself in two ways. You didn't wait until you had 20% down to buy a house and you bought expensive, by MMM standards, cars. The good news is you bought an affordable house, you've apparently paid off whatever CC and SL's you might have had and your car and mortgage rates are dirt cheap.

Discovering MMM is so cool that it is understandable and admirable that you want to get out of debt asap. But not all debt is bad debt. Some of it can be used as a tool to create wealth. The rich do it all the time.  Distract yourself from the urge to do something sub-optimal by focusing on ratcheting down your day-to-day expenses and cranking up your savings rates so you can invest more, shitcan the MI, and pay off the cars as fast as possible. You're gonna kill it.

I personally have no opinion about what you choose to do about your cars. As a family of "buy reasonable cars new, maintain them ourselves, drive as little as necessary and keep them a long, long time" people, I know that this strategy can also pay handsome dividends. If your hair was on fire, I'd have a different opinion, but clearly it's not.

Your investment account balances are admirable. I also have a bit of an issue with the formula from Fidelity that Dezrah linked to. You haven't always been earning this much. If you took an average of your earnings since you started working and used that to calculate your savings, I think you'd be far less "behind" than some would have you think. It's Fidelity's job to scare you into saving more because they want your money. This formula also completely fails to give you any credit for buying an affordable house and adding value through sweat equity. Another wrinkle is that you are most likely going to live on far less than you're earning now when you're FIRE. Fidelity (and most of the rest of the investment world) assumes that you're going to need some huge percentage of your highest income in retirement. It just ain't so, if you study hard and become an expert mustachian.

Watch/listen to me shout: MBJERRY, YOU ARE NOT BEHIND!!!

Dicey fun facts:
1. Never started a Roth when they were introduced because I was
2. saving to buy a house.
3. I had a year's salary in the bank, but I wanted a cushion so I
4. could make the improvements it needed
5. by myself
6. without running up my credit cards, so I
7. only put 10% down on my first house and
8. paid PMI, as it was called then.
9. I didn't start investing until after I bought my first house at age 30.
10. I got to FIRE. I am the Commander in Chief of a bigger army of green soldiers than I ever dreamed possible.

Oh, and the mortgage interest rate for top scorers was probably somewhere around 8% back then, which is what I paid happily, can you imagine that?

Mbjerry, you can get there, with one hand tied behind your back. This might be exactly where that hand needs to be to keep from shooting yourself in the foot. Back away slowly from the Roths and focus on the abundance of low-hanging fruit that surrounds you.

Your not-too-far-in-the-distance self is going to be so damn happy!
Thank you Dicey for the encouragement. Much appreciated. I am torn about selling the vehicles because my thinking is the same as yours at this point “maintain them ourselves, drive as little as necessary and keep them a long, long time”. With my income and low rates I think I can max out my 401k next year and still make some good progress on the debt. Last year I paid off a $20k student loan and various CC debts. I am longing for the days in the near future without the car debt and I am maxing out ALL tax-advantaged accounts plus saving some cash. Thanks again for the confidence boost.




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boarder42

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #31 on: October 29, 2017, 06:54:35 PM »
You shouldn't be paying down any of the debt you have left. It's all sub standard inflation. If you're going to make the Mostafa of keeping the cars please don't pay them down faster. And definitely don't pay your mortgage down faster.

Like I said above forget everything Dave taught you at this point and start learning the best way here.

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #32 on: October 29, 2017, 06:57:08 PM »
You shouldn't be paying down any of the debt you have left. It's all sub standard inflation. If you're going to make the Mostafa of keeping the cars please don't pay them down faster. And definitely don't pay your mortgage down faster.

Like I said above forget everything Dave taught you at this point and start learning the best way here.
Good points. I have an open mind and look to learn as much as I can here. It will be tough to get Dave’s voice out of my head!


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Dicey

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #33 on: October 29, 2017, 08:17:45 PM »
You shouldn't be paying down any of the debt you have left. It's all sub standard inflation. If you're going to make the Mostafa of keeping the cars please don't pay them down faster. And definitely don't pay your mortgage down faster.

Like I said above forget everything Dave taught you at this point and start learning the best way here.
Good points. I have an open mind and look to learn as much as I can here. It will be tough to get Daveís voice out of my head!
Dave who? Nevermind, I don't really want to know. You can do this, mbjerry!

boarder42

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #34 on: October 30, 2017, 06:10:36 AM »
You shouldn't be paying down any of the debt you have left. It's all sub standard inflation. If you're going to make the Mostafa of keeping the cars please don't pay them down faster. And definitely don't pay your mortgage down faster.

Like I said above forget everything Dave taught you at this point and start learning the best way here.
Good points. I have an open mind and look to learn as much as I can here. It will be tough to get Daveís voice out of my head!
Dave who? Nevermind, I don't really want to know. You can do this, mbjerry!

ramsey. --- i think he's on a good path as long as we see the case study he promised us at the end of the month.

Dicey

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #35 on: October 30, 2017, 08:31:26 AM »
Just kidding about DR. I am very much not a fan of him or Suze-Q either. I agree that OP has a great attitude, which should serve well on the journey to FIRE.

mbjerry

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Re: Withdraw Roth contributions to pay off a debt?
« Reply #36 on: October 30, 2017, 08:36:46 AM »
Case Study posted! Go easy on me. Lol


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