Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 262 June 11, 2004
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 262 June 11, 2004 |
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 » From: Naples, FL Dear TaxMama: My husband are only 5 years away from retirement and would like to move our money out of mutual funds into a safer environment. Is it possible to rollover an IRA into a retirement savings bond plan and not incur a penalty? Also, we have additional savings set aside in a money market account and are contemplating paying off the mortgage on our retirement home. Would you recommend this? Thank you. Mary  Hi Mary , Within the IRA you can move to a more secure investment. If you've found a retirement savings bond plan you like - ask them to open an IRA for you and transfer the money there. Meanwhile do NOT draw the money out of your IRA to pay off your mortgage. And I'd hold off using your savings - unless your mortgage interest is really high. In that case, I would start with refinancing it first. As to paying off a mortgage so you don't have one when you retire? I think it's an excellent idea. At least for me. We're working towards that. However, we are not using savings. We have dramatically reduced our interest rate - and the loan term. We have also increased our payments so the loan is paid off from current income, within 7-8 years. I don't advise using savings. Those are your reserve. Just increase your payments as much as you can afford. You won't even notice it. You'll just spend less on junk and impulse buys that you don't need anyway. Best wishes, Eva Rosenberg Your TaxMama __________________  This is the perfect time to check out TaxMama's Career Bank.  |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg |
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