Pull From Retirement To Pay Off My House?

[@SomeOne-yv8jf]

Work to pay off the house in two years at $140k income. Don't touch that Roth IRA.

[@redfox_84]

Roth TSP is similar to a Roth IRA, but they are different in some ways.

[@findingnory]

Well, in the spirit of getting out of debt, it would be better to pay off the house and relieve yourself of that emotional burden. Neither way is wrong though

[@dontworry1568]

one reason you would pay it off now instead of later is just in case something does go sideways., you dont have to worry about paying your mortgage.

[@chocolateangel8743]

I'm with Jade on this one. I would pay it off with income.

[@MariaInIowa]

Me too.

[@steelcastle5616]

I think paying off the loan early, then saving the money that would have been mortgage payments is better. I'd pay off debt ASAP, then invest new money (that otherwise would be principle+interest) into retirement accounts.

[@chocolateangel8743]

@@steelcastle5616 The thought of that freaks me out.

[@mastamatsta]

Don’t stop the compounding

[@JustinCase780]

This makes no sense with that income. Just pay the darn mortgage.

[@reese85]

Their income is decent but there older! So I can’t see them spending money on stupid stuff. So just stay the course and throw extra money at it and pay it off by the time they stop working

[@JustinCase780]

@jclaiborneii Thanks for the caps! We can read...🤣

[@jimmymcgill6778]

NO, NO, NO After taxes they make about 120k. Maybe 90k to 100k after other deductions. They can pay it from their salary. And will be paid in two year.

[@aolvaar8792]

Why create a pile of money that may not be used. I have friends that have $150K/yr pensions. They do not see ever touching their 457B. Retired young and not drawing SSA till 70, (they don't need it)

[@jimmymcgill6778]

@@aolvaar8792 They need money for retirement.

[@aolvaar8792]

@@jimmymcgill6778 Military Retirement + VA disability. Soon SSA How do you Know they NEED the money? I didn't.

[@jimmymcgill6778]

@@aolvaar8792 You don't know how much is coming for just his job, and not his benefits. You don't know how much he will need for medical expense.

[@aolvaar8792]

@@jimmymcgill6778 How do you Know they NEED the money? Medical? he's a military retiree. You're right, I don't know. between military and SSA ~$5K/mo $100K at 10%= $10K does he need $10K/yr?

[@jameshicks101]

If this home owner is only a couple years from paying off the house, he has paid nearly all the interest on it already. Paying off early now would be a waste. Even if this was earlier in the mortgage, the Roth makes interest and the mortgage takes interest. Still, the Roth most likely makes more than the mortgage takes.

[@aolvaar8792]

Risk and he may not use the ROTH. Pension income may cover all expenses. The ROTH may be legacy.

[@MariaInIowa]

You're new around here, right? :)

[@jackbernardi7791]

Pulling from your retirement would Be a mistake

[@md-wg4bz]

Why?

[@adamseidel9780]

Classically no discussion of what really matters: the interest rate.

[@patty109109]

No. At his income, he is behind on retirement significantly.

[@commonsense-og1gz]

the best answer is NO. if you are paying a flat payment for the mortgage, then the money in the investment will be best sitting in the investment account, because it will grow exponentially over time.

[@JoeLSoL]

I love that the caller was very calm and patient and let them speak.

[@tvrao878]

These are the best calls!

[@donhill1825]

I'm having trouble understanding why this would even be considered. What is gained by withdrawing from retirement to pay off what I'm assuming is low interest mortgage? *ESPECIALLY* if Dave is insisting the "loan" be paid back ASAP. Just aggressively pay down the mortgage. I don't get it.

[@Chieffg]

the caller is 61yrs old and still working, the retirement age of roth ira is 59 so thats why there saying its okay to pull out...if he was younger answer would be no

[@DeanBKK]

The mimicking voice Dave makes at 3:17 has me dying of laughter 🤣

[@ghostbird92]

We all know exactly what sentiment he's trying to express too lol "Don't nyah nyah nyaahhhh....JUST GET IT!!!!!"

[@GodisGreatt]

I love Jade’s interaction with Dave! She brings opposing views and her interjections were quite timely as I was thinking what she was opining. Great video and great job as usual Jade!!!😊🎉

[@chocolateangel8743]

Yeah. Unlike a lot of the others, she's not afraid to speak her mind.

[@TheSoulCrisis]

Just what the doctor ordered!!! ❤

[@scarpfish]

No, nope, nien and nada, I would never touch my retirement unless the situation was really dire.

[@siegfriedbraun5447]

I'd always heard it said "either schitt or get off the toilet"! The ladder one kinda works too

[@stevenporter863]

3:18 Sounds like that from Dave keeps me watching. 🤣🤣

[@dc1741]

I'm in a somewhat similar situation. 62, just retired. Ran the numbers and it didn't make sense for me to pay off the remaining mortgage, mainly because the mortgage interest rate is fairly low (3.5%).

[@aolvaar8792]

Having a sealed title inside of a trust, protects.

[@IgoOutlateAtnight]

The only way it makes sense per the Ramsey's is to pull from the husbands account to give to the wife. Other than that, not good to pull...

[@stevenporter863]

According to the Ramsey doctrine: what is her's is her's and what is his is theirs. 🙄

[@larryhawes8295]

...but you can only build your ROTH at $7000 per year.

[@lashondamiller2982]

Yeah, but it also accrues interest on the total amount in your roth account as well

[@SomeOne-yv8jf]

He should stay the course and work to pay it off. Don't touch that Roth IRA.

[@redfox_84]

Roth TSP has a higher contribution limit

[@MontyCarlo1977]

If the mortgage interest is less than the interest on the savings, DON'T pay it off. If your mortgage interest is less than inflation rate, DON'T pay it off any sooner than need be.

[@flea4061]

You can't actually take out just from the Roth side. Its proportioned with the non Roth side. 25k would come from each side, meaning taxes on 25k.

[@MultiTlp]

what do you mean the "non ROTH" side?

[@Fishouta]

​Traditional

[@MultiTlp]

@@Fishouta I didn't hear the caller say anything about withdrawing any of the traditional, only the roth?

[@elcheekoful]

I had a friend that did this. Cashed out his 401K to pay off his house. He is in his 50's. He's regretted it ever since.

[@chocolateangel8743]

@Austin #### I'm unclear on which route you're saying he took. Did he go the Dave or Jade route?

[@elcheekoful]

@@chocolateangel8743 I corrected it.

[@chocolateangel8743]

@@elcheekoful I see. Interestingly, my younger brother (in his 30's) called me and asked me the same thing (since I made my initial comment). I pointed him here.

[@elcheekoful]

@@chocolateangel8743 yeah. Well I hope he thinks about it for awhile. It's a big decision. I've never been in that situation.

[@jenniferberg9239]

Would the entire 100k withdraw put him in another tax bracket? That would be a good reason to do 50k per year

[@KathleenHermann]

just curious i own a home worth 585.00 owe 25,000 and have a saving and 401 k do i pay off the house no other debt

[@375Cheytac]

Deduct 25% from $140k and you get $105k after taxes. Contribute $50k/year to the house. That leaves you with $55k/year to live on, or $4600/month. How the heck can you not afford to live on $4600/month when housing is already taken care of. I’ll guess high: Food: $50/day ($1500) Gas: $20/day ($600) Utilities: $10/day ($300) Property tax: $12.5/day ($375/month) All of that factored in, you’re still left with about $1,800 left for car payments or whatever else you feel like getting that month. I’m so confused how people can’t live on that.

[@TheFlyingZulu]

No joke... being poor really puts things into perspective huh? 4,600 a freaking month would be like super rich to me.

[@smithrngr]

he said tsp, no tax till take out.

[@jonv.6792]

I wonder how is their health condition at age 61. Mathematically it's better to keep paying by their income and kept Roth invested. But psychologically, be stress free and debt free if I pay it off now from Roth. Don't have to work so hard and return the money to investment. ✌️Peace

[@Mosesusorer]

Stop having kids people! Spare them all the pain & suffering in this cruel world we live in. We don’t have the moral right to inflict serious, preventable harms upon our children without their consent!!

[@KG-wh8yv]

Unfortunately this is true. People mindlessly have kids with as much thought as buying luggage at the mall.

[@mmlabrat8905]

Living is awesome. If you hate it that much, write me into your will then do what it do!

[@jwlsngold5026]

How is this scenario related to hurting your children?? I agree with your point, I just don't see its relevance here. Tell me what I'm missing??

[@amireallythatgrumpy6508]

A shame your mother didn't see things this way.

[@bigchungus920]

Live off 40k and pay it off quickly

[@MrOfficer235]

Considering all of his streams of income are Federal either route would be fine. They have guaranteed income for the rest of their lives.

[@matthewgardner2144]

Why does LW say "we" plan to work when he also states his wife doesn't have a job.

[@lorenzohogans7330]

I’d say pay it off through working and don’t touch the retirement account. If God forbid he got sick, injured or laid off, he wouldn’t have already used up $100k that he may not be able to replenish

[@joshknight8093]

Idk ive been thinking of cashing out my retirement and doing this at 33.

[@billyrock8305]

Lady, let SuperDave talk, interrupt and get mad. 😡

[@Primitive_Code]

Rachel interrupted the heck out of her the other day.

[@billyrock8305]

The Ramsay Show. Aka the rude interruption show!

[@theIdlecrane]

Id pay off the mortgage

[@Primitive_Code]

If you're 61, why can't you just cash out your Roth TSP? I don't get it.

[@aolvaar8792]

@Paper Tiger A sealed Title with the State. He does NOT own the house!

[@Nobody2day553]

Stop re-uploading videos.

[@moneymattersforeverybody]

$140k salary? Pay that house off in 12-18 months!

[@steelcastle5616]

Why strain if you don't have to? He has options that he can take and maintain his current lifestyle.

[@moneymattersforeverybody]

@@steelcastle5616 totally get where you’re coming from but when he’s that close to feeling the grass under his feet knowing it’s his and he doesn’t owe anybody, that he’s reached true financial freedom. I say GO GET IT!

[@mac5856]

Wow, i wish i had these kind of problems. Hmmm, taking home over 6 figures, have over 500k in retirement and wondering if i should payoff a mortgage of only 150k. In my own personal opinion there has got to be a lot of other people , myself included, that are in WAY worse shape. To be honest, again in my opinion i dont see why they would need to call the show. It seems like i see quite a few calls like this on here, i am going to keep searching for the single person who makes 65k a year and is over 55 and hardly no retirement and still has 20 years to payoff their house unless they put extra money to it and can pay it off in 10 or so but if they do then they have no room for savings so then what? Let me guess, go get a 2nd job and bust your butt and work all the time so you can basically pass away at age 65 maybe? At age over 55 go back to school? with what money? We all would make more money if we could with our skill set but we also need to survive daily. Ive ranted long enough i guess.

[@magic_fruit_bat5003]

How bout pulling from retirement to payoff the student loan?

[@jimroscovius]

NO NO NO!! You lose so much!!

[@amireallythatgrumpy6508]

Never pull from retirement under any circumstances unless you are 80+.

[@steelcastle5616]

@@amireallythatgrumpy6508 Sorry, but I don't plan to leave all my retirement savings to my next of kin. Retirement is to be used for retirement. Besides, IRAs have RMDs that start at 73.

[@amireallythatgrumpy6508]

@@steelcastle5616 Sorry but retirement is for lazy people only.

[@jaypal3815]

The guy is in his sixties maybe he just wants to finally relax.

[@steelcastle5616]

Yep!

[@michaelvan6675]

Ladies annoying. Likes finishing others thoughts.

[@jimmymcgill6778]

JUst like you.

[@redfox_84]

Why mess with your TSP account that close to retirement. Dumb.

[@aolvaar8792]

He may not need it, Pensions.

[@redfox_84]

@@aolvaar8792 Federal pension isn't that great, unless they started working prior to 1984. Needs to be supplemented by TSP.

[@user-tb7rn1il3q]

I’d sell the house they are living in and use the equity to buy a cheaper smaller house.

[@TheRealEdStoner]

That’s actually the first question I thought of was. Are you planning on downsizing after you retire?

[@J3llyBean423]

srb no / but rigth . if you could pay it off / up aware and everything / they can't live ,. that's why / the shell game / haaaa/

[@tEqUiko]

😁😂2:55

[@lukeharris2622]

✝️🙏

[@Sizukun1]

Why do people have mortgages in their 60s asking these questions? How dumb are people?

[@steelcastle5616]

Because of 30-year loans. And if that's "dumb", there are lots of Dumb people in the US (30-year loans are popular).

[@faisalyounus6986]

10th

[@aaronvences4483]

First