Updated 4 months ago
Yikes! I was having difficulty with my app and wound up posting the same thread 3 times. So sorry!
Welcome to BiggerPockets and thank you for your service in the military!
In my personal experience, I wouldn't recommend you cash out your Roth and mutual funds/ retirement accounts. Did you know you could use your IRA/ Roth/ Retirement account to invest in real estate? There are many investors who have found success using the IRA to own/hold real estate investments. You can do this through the use of a self-directed IRA.
I would be happy to connect and discuss more if you have any questions.
Thanks for your reply! I'll connect with you and send you a message, as I do have a few questions about the SDIRA.
Your welcome. Send a PM or call the office number in my profile. We will be glad to help.
Roth IRAs are gold, in my opinion. Keep that for regular securities investments. Regular IRA's however, I think are overrated, especially if your income will be high in retirement years. I did cash mine out as soon as I turned 59.5, paid the tax (ouch!) and bought real estate. Between cash return on rent, leverage and depreciation deductions, I think it most likely will pay off long term. Kept my Roth IRA right where it was though.
Colleen, first THANK YOU both for serving in the military for our great country. Second, you mentioned you are moving. Are you selling your home? Do you have equity (cash) in your home that you can utilize to buy a duplex in another city? House hacking is awesome-sauce! Good luck, dive in, and keep reading for sure!
If you do deiced to distribute Roth IRA funds, you may want to consider only distributing the basis since you have already paid taxes on those funds, so the 10% early distribution penalty would not apply. To learn more about the Roth IRA distribution rules, see the following.
Thanks, guys, for all that good advice!
@Christian Chevier - we do have quite a bit of equity in a home we own in KS, and have been renting out for several years. It's on the market to sell (for nearly 90 days now...argh!), but we're hoping it will sell soon so we can get this show on the road!
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