Profile picture for user9109977

I lost a high paying job 4 years ago and have been struggling making about half as much ever since..

  • September 28 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

Profile picture for wetdawgs
If thinking about using the IRA, calculate your true costs:   Some of them would be

10% penalty if less than 59 1/2 years old.
20% or more federal taxes plus state taxes of unknown percent. 

Cash flow may be tough this year, but is it really worth >30% of your IRA?   Even if prices increase over the next year, it won't be 30% increase.

There is maximum limit to the amount one can put in an IRA or Roth each year, so next year you won't be able to put $100 k right back in.

I'd tighten the belt until you are eligible for a mortgage.
  • September 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user9109977
I guess it got cut off...
I make about half the income I used to make and I'm looking to increase my cash flow...

We have a rental property we've had for 15 years that we've always loved to manage and we're thinking about getting another one.

Our credit took a serious hit recently and it'll be at least another year before we can get a new mortgage.  I'm thinking of taking the $100k I have in my traditional IRA out, paying the penalty and tax on it, and buying a property for cash.  Therefore increasing our cash flow to a much better position.

In a year or so we could refinance (or finance) it and then we would have the choice to put the cash into a Roth or invest in another rental.

I don't want to do this through a self directed IRA as the cash flow would have to go back into the IRA therefore defeating the purpose.

It seems like we should go for it.  Or did I miss something?
  • September 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
I'm sorry, yes, many of us have been in those shoes.

Did you have a question?

  • September 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.