Can_I_Retire_Now
Dryer sheet wannabe
My apologies for another "Pay off Mortgage" thread. I don't know if my situation is unique or not, but here are the details....
Been debt free for several years. Bought a farm in another state. After buying the farm, we sold our payed off home and moved to the farm. The farm cost far more than the sale price of our home. We put 20% down on the farm and currently carry a 3.5% mortgage. The original intent was to pay off the farm in 4 years with the the IRA to lessen the tax bite. Our IRA is rather sizable but we will be taxed once we start withdrawing from it.
Well, I hate being in debt and I want to just go ahead and pay it off. Unfortunately, taking the money out of the IRA will put us in the 30% tax bracket, which is going to be a sizable amount of taxes.
Our financial advisor is against it. I was hoping for some sort of novel tax strategy that would allow us not to incur the sizable tax hit, but there is none offered that we are aware of. We are retired and we own no business for any write-offs, so the IRA withdrawal is subject to the highest tax rate.
On the one hand, a payed off property will give me piece of mind. but at the expense of forfeiting the opportunity to continue to grow our investments. We will still be okay money wise, but I just hate to give Uncle Sam so much of that money! We are going to talk to a CPA in a couple of weeks to see how best to approach paying off the mortgage.
With all this social unrest due to factors that we are all aware of, I think it would be in our best interests to just pay it off and be done with it. I am open to whatever wisdom you may have regarding our situation.
Been debt free for several years. Bought a farm in another state. After buying the farm, we sold our payed off home and moved to the farm. The farm cost far more than the sale price of our home. We put 20% down on the farm and currently carry a 3.5% mortgage. The original intent was to pay off the farm in 4 years with the the IRA to lessen the tax bite. Our IRA is rather sizable but we will be taxed once we start withdrawing from it.
Well, I hate being in debt and I want to just go ahead and pay it off. Unfortunately, taking the money out of the IRA will put us in the 30% tax bracket, which is going to be a sizable amount of taxes.
Our financial advisor is against it. I was hoping for some sort of novel tax strategy that would allow us not to incur the sizable tax hit, but there is none offered that we are aware of. We are retired and we own no business for any write-offs, so the IRA withdrawal is subject to the highest tax rate.
On the one hand, a payed off property will give me piece of mind. but at the expense of forfeiting the opportunity to continue to grow our investments. We will still be okay money wise, but I just hate to give Uncle Sam so much of that money! We are going to talk to a CPA in a couple of weeks to see how best to approach paying off the mortgage.
With all this social unrest due to factors that we are all aware of, I think it would be in our best interests to just pay it off and be done with it. I am open to whatever wisdom you may have regarding our situation.