OK. I've been struggling to gain full time employment....but I have been able to work part time for a small company, which has been paying the bills ok for now. Problem is they are not so hot on paying invoices in a timely manner. i've got an invoice into them for about $9000 representing my work since December. Not a full time position at any means....I'm mostly support and bug fix for them.
During my employment difficulties, I've racked up some pretty serious credit card debt. I currently owe about $7000 on two cards. During my employment years (full time) I was a pretty astute saver....my cash back-end is gone, but I've got a substantial (for 5 years saving) IRA, 401k and Roth.
Currently reads: IRA-7000 (fluctuates with the market)
401K-5000 +/- (Currently all in cash)
Roth IRA - 4000
For first time home buyers you can take a maximum of $10000 from a retirement account penalty free. I thought about doing that, but the area where I live, I don't think a home is a good investment. A house built here in 95 that sold for $86k might fetch $90k today if it's lucky. (I used to live in that house I just referenced). THe problem is the new houses are going up really in-expensively. A new home is currently advertised (same specs 3BR/2ba---a little larger) for $94k. So I just don't feel comfortable with a new home.
Anyway. I'm giving serious thought to cashing in my IRA and 401K. I know it's a savings account for when I retire (I'm 28)....but I was hoping to gain insight on the pros/cons.
Pros: Become almost completely debt free (less car payment)
Cons: Lose the advantage I currently have on most other folks when it comes to retirement planning.
Other Addeds:
ROth-IRAs have changed the amount you can contribute. Now, you can contribute $3k a year, and pretty soon it will be $5k. When my employment straightens out, I'll have no problems contributing agressively again.
Myt question for the financial wizards is this. It's my understanding that cashing in a retirement plan takes 10% penalty, plus state and fedeeral taxes...any way to figure out exactly what the figure would be?
My biggest incentive is to be debt-free period. Thanks for any insight/advice.
During my employment difficulties, I've racked up some pretty serious credit card debt. I currently owe about $7000 on two cards. During my employment years (full time) I was a pretty astute saver....my cash back-end is gone, but I've got a substantial (for 5 years saving) IRA, 401k and Roth.
Currently reads: IRA-7000 (fluctuates with the market)
401K-5000 +/- (Currently all in cash)
Roth IRA - 4000
For first time home buyers you can take a maximum of $10000 from a retirement account penalty free. I thought about doing that, but the area where I live, I don't think a home is a good investment. A house built here in 95 that sold for $86k might fetch $90k today if it's lucky. (I used to live in that house I just referenced). THe problem is the new houses are going up really in-expensively. A new home is currently advertised (same specs 3BR/2ba---a little larger) for $94k. So I just don't feel comfortable with a new home.
Anyway. I'm giving serious thought to cashing in my IRA and 401K. I know it's a savings account for when I retire (I'm 28)....but I was hoping to gain insight on the pros/cons.
Pros: Become almost completely debt free (less car payment)
Cons: Lose the advantage I currently have on most other folks when it comes to retirement planning.
Other Addeds:
ROth-IRAs have changed the amount you can contribute. Now, you can contribute $3k a year, and pretty soon it will be $5k. When my employment straightens out, I'll have no problems contributing agressively again.
Myt question for the financial wizards is this. It's my understanding that cashing in a retirement plan takes 10% penalty, plus state and fedeeral taxes...any way to figure out exactly what the figure would be?
My biggest incentive is to be debt-free period. Thanks for any insight/advice.
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