Looking for some creative ideas here.
Considering buying a second "overlap" vacation home that we would have for 3 years until DW retires then sell primary residence and live there full time. I FIRE'ed 2+ years ago. DW will work 3 more years, she will turn 60 this summer and is past 59.5 years. Her 401K is about 20% of our portfolio and I was thinking of robbing it of about 70% of its value to buy this property.
Until I realized that we would have to pay 32% income tax on the sum.
Don't have any other source of tax free $$ that I can use. Thought of getting another mortgage I don't like. Primary house mortgage is fairly small and we have maybe 67% equity in it.
Ideas? Loan on 401K limited to $50k right? Roll it to an IRA get us anything? Home equity loan make any sense?
Thanks
Considering buying a second "overlap" vacation home that we would have for 3 years until DW retires then sell primary residence and live there full time. I FIRE'ed 2+ years ago. DW will work 3 more years, she will turn 60 this summer and is past 59.5 years. Her 401K is about 20% of our portfolio and I was thinking of robbing it of about 70% of its value to buy this property.
Until I realized that we would have to pay 32% income tax on the sum.
Don't have any other source of tax free $$ that I can use. Thought of getting another mortgage I don't like. Primary house mortgage is fairly small and we have maybe 67% equity in it.
Ideas? Loan on 401K limited to $50k right? Roll it to an IRA get us anything? Home equity loan make any sense?
Thanks