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Regular Contributor
babbles
Posts: 144
Registered: ‎11-11-2007

Does it make sense?

Does it make sense to sell some of my pension to pay off some high interest CC, loans, and possibly a 2nd lien?  Or would it be better to sell some of it to by a home and then receive the profits of the home through rental income and have a paid off home and deed?  Thanks!

Moderator Emeritus
fused
Posts: 16,194
Registered: ‎03-12-2007

Re: Does it make sense?

I'm moving your post to the general credit topics forum.

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Valued Contributor
HoldingOntoHope
Posts: 1,057
Registered: ‎09-29-2009

Re: Does it make sense?

Two things come to mind immediately:

 

1. A question of this magnitude deserves a carefully researched and knowledgeable answer from a CPA or investment advisor with respect to the tax implications, future growth capacity of the pension funds, and your long term financial goals. Probably better to pay for advice than ask an internet forum for opinions.

 

2. To offer an opinion anyone would need a lot more info such as your age, what type of pension, what types of debt, home price / rental income, tax information, etc.

 

So I guess if you want an answer it would be NO don't do it until you understand all the implications. I know Suze Orman says NEVER, NEVER, NEVER touch a 401K / Non-ROTH IRA to pay current debts if you are not retired already.

 

Just did spell check and found it funny that they want to replace Suze Orman with Suez Roman.:smileyvery-happy:

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Valued Contributor
AndySoCal
Posts: 1,893
Registered: ‎04-07-2009

Re: Does it make sense?

What type of pension is it ?

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Regular Contributor
babbles
Posts: 144
Registered: ‎11-11-2007

Re: Does it make sense?

military

Regular Contributor
babbles
Posts: 144
Registered: ‎11-11-2007

Re: Does it make sense?

47, wife is acdu military, thinking about possibly thinking about purchasing a foreclosure home or paying off  1 high balance cc (18k), 2 loans, or maybe purchasing a home free and clear.  I have researched 3 companies and compared but WHEW!  Not sure.

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Valued Contributor
HoldingOntoHope
Posts: 1,057
Registered: ‎09-29-2009

Re: Does it make sense?

When you say selling your pension off if you are talking about one of those plans where they provide cash up front for forfeiture to them of your long term obligation I would tread very carefully. Especially if your wife has survivors benefits tied to your pension. Again I would seek professional advice instead of trying to figure it for yourself. Unless your education and background is in finance.

 

I have a good friend who is a CPA / MBA and probably some other letters I'm forgetting. I run all my best financial ideas by her. She points out the (sometimes fatal) flaws in my plans.:smileyhappy:

Best financial advice I ever got: "Just imagine what an adult would do and do that."

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