09-21-2011 12:55 PM
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!
09-21-2011 01:32 PM
I'm moving your post to the general credit topics forum.
09-21-2011 02:40 PM
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.
09-21-2011 06:34 PM
What type of pension is it ?
09-21-2011 07:45 PM
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.
09-22-2011 01:40 PM
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.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.