I confess that I do not quite follow all of your facts in your message. I think what you are saying is that upon retirement, your spouse will receive a $50K contribution from his employer that is taxes at a rate of 20%, and you are wondering if you should take the distribution now less 20% in taxes, or all of the distribution and roll it into a IRA-like account.
If my paraphrasing of your question is accurate, then the answer is a no-brainer. I really dislike the idea of depleting your retirement account to zero your mortgage. Find a good investment counselor and put your retirement account to work for you. If your retirement counselor cannot create a greater return on your investments than the interest rate on your mortgage, then you are better off paying-off your mortgage.
If your investments can earn you 7 percent and you are paying 5 percent on your mortgage, then you are money ahead hanging onto your mortgage and your savings and retirement account. If my hypothetical numbers are reversed, then get rid of the mortgage.
I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Loading more commentsSince you don't have facebook, please provide us with your location and a valid email address so we can answer it. Without a valid email address,we can't reply. (Go back to login with Facebook)
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
We get a lot of comments! To help us show our boss that this is a valuable service, so we can keep providing it, we ask you to do 2 things before commmenting:
Log in
Like us
Submit your comment!
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
Thank you for your comment. Your comment will be posted shortly.
No Comments