[repo]

I got a great deal on my '08 Mustang last August. I wasn't as concerned then as I am now (for some reason) about the state of our financial system. If I cash in my few IRAs I will almost have the car paid off.

I am debating whether I want to take the penalty or just sit tight for a little longer.

Any advice?

Thanks

 

[janit0r]

don't touch your iras or 401. i wouldn't contribute to it, but i wouldn't cash them out. not as an insult, but the mustang looks really nice in "i'm legend" the movie...other than that, i would consider something 4x4 or AWD...and again it depends on your situation...just my 2 cents.

 

[logrfood]

I got a great deal on my '08 Mustang last August. I wasn't as concerned then as I am now (for some reason) about the state of our financial system. If I cash in my few IRAs I will almost have the car paid off.

I am debating whether I want to take the penalty or just sit tight for a little longer.

Any advice?

Thanks

How much is the car?

how much do you owe on it?

how much is the penalty?

I would say generally this is a bad idea.

 

[repo]

Thanks. I am one of those people who absolutely hates the feeling of having debt.

No offense at all. Like I said, I got the Mustang before I really started becoming concerned with the state of the economy. I love the car, and my wife has an SUV. So if it comes down to it we will bug out in her vehicle. We are 30 miles from my family's place, where we would bug out to.

I guess I am just worried that everything will tank before I have a chance to sell the mutual funds my IRAs are wrapped up in. Then I won't have anything to withdraw to pay off the car.

But for now, I will probably sit tight (but watch it like a hawk).

 

[repo]

How much is the car?

how much do you owe on it?

how much is the penalty?

I would say generally this is a bad idea.

I owe $13,000.

The penalty would be 10% of the value of my IRAs, so roughly a grand. (This is what has really kept me from doing it, I don't wanna throw away what I have "earned" so far).

I have been leaning strongly towards staying put and not cashing out, but it's nice to still get advice from many people to make sure I am thinking straight and not missing something in my reasoning.

Thanks

 

[logrfood]

I owe $13,000.

The penalty would be 10% of the value of my IRAs, so roughly a grand. (This is what has really kept me from doing it, I don't wanna throw away what I have "earned" so far).

I have been leaning strongly towards staying put and not cashing out, but it's nice to still get advice from many people to make sure I am thinking straight and not missing something in my reasoning.

Thanks

Yeah... it'd actually be cheaper for you to work a few extra hours aweek somewhere.

 

[Observer]

Just my opinion, but, in the event of a servere collapse, your IRAs will be worth more than an 08 Mustang. If you pay the car off andnothingn happens, your IRAs would have been worth more than an 08 Mustang. Just my opinion, but if you have to trim fat, it would be the 08 Mustang. but perhaps things won;t come to this...

 

[Highlander]

What is the difference between the interest saved over the term of your note vs. The penalty for early withdrawl?

 

[logrfood]

What is the difference between the interest saved over the term of your note vs. The penalty for early withdrawl?

Its just the 10% were it a trad IRA, i believe it would be 10% plus your bracket rate.

 

[repo]

My only fears w/ holding onto the Roth IRA are that after a collapse either 1) the Funds the $ is in will crash and be worthless, and/or 2) the dollar will be worthless anyway.

But then again, if the crash is severe enough a car payment might not matter that much anyway.

 

[PACER2]

Sorry to hyjack this but its kinda the same..I know he is talking about a IRA but if you have a 401 you could take a loan from the 401 k company that is holding it with no penalty..I did that a year or so ago to pay off some credit card debt(not alot ) but you are paying your self the interest and not the banks(or government now)..You take up to half of your amount.(atleast in my case...Can you do that with your IRAs? And would it be smart to take more than needed to "stock up" on supplies or buy silver/gold or oil??

 

[hawkbern]

As suggested, I would leave the IRA alne and just focus your money going forward into paying down the debt. Best of luck!

 

[Randall Flagg]

i would not worry about paying off the car, but i would still take my money out of the IRA's, and in my personal life, i have already done this last year.

 

[woodyp]

...SIT!..............and don't give it another thought.

 

[WILL]

I would suggest you not touch the IRA, and continue adding towards your retirement nest egg. It is likely you will reach retirement age in a functional society.

If things get so bad that your IRA and other diversified investments are all worthless, the least of your problems will be creditors looking to repossess your mustang. Society as a whole would be a total mess.

Besides, your car is almost always a depreciating investment. It's value drops, starting the minute it rolls off the showroom floor. In 15 years, it will be worthless.

Invested monies, on the other hand, have a good chance of increasing in value. Keep your eye on the prize. Slow and steady.

 

[logrfood]

I would suggest you not touch the IRA, and continue adding towards your retirement nest egg. It is likely you will reach retirement age in a functional society.

If things get so bad that your IRA and other diversified investments are all worthless, the least of your problems will be creditors looking to repossess your mustang. Society as a whole would be a total mess.

Besides, your car is almost always a depreciating investment. It's value drops, starting the minute it rolls off the showroom floor. In 15 years, it will be worthless.

Invested monies, on the other hand, have a good chance of increasing in value. Keep your eye on the prize. Slow and steady.

Oh no.. you should definitely do what Randall Flagg/Saint/Highlander tells you. BWAHAHAHAHAHA.

The world is going to end by EMP/Nuke disaster and the dollar will be worth drivel AND we will all end in 2012 and so trying to make money isn't good because it's against Jesus.

Sheesh. What passes for logic on this board.

Log.

 

[Randall Flagg]

The world is going to end by EMP/Nuke disaster and the dollar will be worth drivel

The currency collapse will happen due to debt thats not able to be paid off, investors not buying our debt, printing presses running full time,etc. This is a fact, not a if, but a when.

and so trying to make money isn't good because it's against Jesus.

no one said that, we said, money should not be the driving force in your life.

Sheesh, your as bad at reading comprehension as you are at economics.

Invested monies, on the other hand, have a good chance of increasing in value. Keep your eye on the prize. Slow and steady.

Sure they do, if you make the right investments and get out at the right times, also with you factor in true inflation(5-8%)your not really making out on most investments.

Thats why real investors consider T.I.P.S. a joke.