Borrowing money during retirement.


Dryer sheet aficionado
Aug 31, 2003
My wife and I will need money next year to build a small cabin on our country property.  I'd like to get some advice concerning borrowing from a lender versus borrowing from my nest egg.

I'm lothe to withdraw money from our IRA, because that's  tax deferred money that's getting pretty good returns even in our present bear market.  :-/

It seems that it would be better to borrow the money from a lender, if the interest rate is lower than my investment interest gains.  

I'll have no problems paying off the loan.   Any suggestions?
I am totally against Borrowing money. With that said are all your assets in IRA accounts? If so, I probably go with some kind of loan against your house.

I assume you own a house, and you could get a home equity loan to finance the contruction of this cabin. But let me ask you this. are you planning on selling your house to move to the cabin when it's complete? If yes, I would probably sell the house first. Then rent and build and move into the cabin when ready.

If you are thinking of borrowing to finance a cabin even after it's built , this is risky thinking if you are retired. I pay cash for everything otherwise I don't buy it. People that borrow are usually on another forum called

"I owe I owe it's off to work I go"
Actually, I own my home and a rental property. A home equity loan might be the ticket. I'd eventually like to sell both properties and move to the country but my lovely marriage partner isn't quite ready to make that commitment just yet. We have to stay put for a little while anyway to take care of elderly parents.:p

8)The cabin will be primarily a weekend home. Since I'll be doing a lot of the work myself, most of my building expenses will be for materials.

I, like you, prefer to pay cash for everything. I would rather wait and pay as we go, but in this instance, we want to begin enjoying our retirement ASAP.
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