lemming
Full time employment: Posting here.
- Joined
- May 29, 2008
- Messages
- 600
I have financed some big items with a HELOC that gives me a flexible repayment plan, interest under 4%.Plan was to pay off in 10 months or for the largest project 2 years.
For the kitchen remodel, I thought about it for a couple of years-so that is the saving up part-mental only, no actual money was moved. That was the only year I went over a reasonable withdrawal rate. I also just financed a car.
I just pulled out a chunk of money from a stock sale that paid off half the remaining balance of my mortgage. If I pull the rest out I will have a 8k tax bill. If I wait til next year I will only have a 3k tax hit. But it will free up cash flow so much that I can live on SS and one quarterly dividend that I take in cash. So future RMD's will be reinvested as taxable investments to draw on. I keep dithering about what I want to do.
For the kitchen remodel, I thought about it for a couple of years-so that is the saving up part-mental only, no actual money was moved. That was the only year I went over a reasonable withdrawal rate. I also just financed a car.
I just pulled out a chunk of money from a stock sale that paid off half the remaining balance of my mortgage. If I pull the rest out I will have a 8k tax bill. If I wait til next year I will only have a 3k tax hit. But it will free up cash flow so much that I can live on SS and one quarterly dividend that I take in cash. So future RMD's will be reinvested as taxable investments to draw on. I keep dithering about what I want to do.