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Originally Posted by fatburg
Don't forget to take out the 20% penalty and taxes...that makes your 14 about 7...suck.
I've done the math several times, I can cash one of my retirement accounts out and pay off everything but my house. Of course if I hold on a little longer, I can open my gym and borrow against my retirement penalty free.
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Quote:
Originally Posted by Ebbs15
for me yes... but if his "emergency fund" and retirement are not in 401K's then he doesn't have that penalty...
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Well, only 5 is in a 401K, the rest is in a Roth IRA, so I'd be looking at more like 11 or 12 if I had to take it out.
I HOPE to never dip into the e-fund, so I put it in a Roth account to let it build up tax free. If I ever have to pull from it, I can do so without penalty, as long as I only take out my contributions. If I were to get into the earnings portion, then i'd have the penalty and taxes, but since I have other investments in there besides the cash portion for the e-fund, I don't see any reason why I'd get into earnings. That and the fact the market has taken a huge hit, so I really have no "earnings" to speak of right now.
