My dear friend/neighbor keeps asking me this question and I'm afraid I'll give the wrong answer. I know he is in his early Sixties, owes only $58K on his home, can easily afford the payment...but he thinks he should take $58K out of his 401 and pay it off. His logic is that he will inevitably get unhealthier in his Sixties decade, so he would feel more secure owning his home. I'm thinking he will take a huge hit on his income and Uncle Sam will tax the heck out of him if he takes out $58K in one lump sum. Anyone out there have good financial wisdom I can pass along so he doesn't make a mistake? I told him to seek a financial adivsor but he won't. Thanks everyone.
2006-11-12
08:32:16
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7 answers
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asked by
Anonymous