I'm looking for some input on this plan.
House is 90xs built and the original "masonite" wood fiber siding is about due for replacement - likely with either hardie or lp smartside planks. How to pay for it..
A little about the finances first to set the stage for my question. 44, married, 3M net worth and investing about $150k per year across 401k, 457b, Roth Ira, HSA, ibonds, 529 saving plan for the kids college, taxable brokerage. Basically maxing just about everything we can. No debt except mortgage, more equity than debt. The plan is to retire by 55, maybe earlier.
What I'm thinking is...
If I use cash or taxable funds to pay for this, I'm putting a big hole in my early retirement plan. I don't currently have a Heloc.
In our case.. why not use a 401k loan? The amount will be quite small relative to the size of the account (maybe 3-4 percent of tax deferred accounts). Interest is paid back to me, so I suppose I could think of it like a bond. I have stable employment but.. if it hit the fan I could sell assets in taxable to cover it. I don't keep a lot of cash, try to stay invested.
This way.. no need to sell anything and pay tax on it, no need to apply/appraisal/expense for heloc. Only downside is those funds will be "out of the market" for the length of the loan.
Thoughts?
House is 90xs built and the original "masonite" wood fiber siding is about due for replacement - likely with either hardie or lp smartside planks. How to pay for it..
A little about the finances first to set the stage for my question. 44, married, 3M net worth and investing about $150k per year across 401k, 457b, Roth Ira, HSA, ibonds, 529 saving plan for the kids college, taxable brokerage. Basically maxing just about everything we can. No debt except mortgage, more equity than debt. The plan is to retire by 55, maybe earlier.
What I'm thinking is...
If I use cash or taxable funds to pay for this, I'm putting a big hole in my early retirement plan. I don't currently have a Heloc.
In our case.. why not use a 401k loan? The amount will be quite small relative to the size of the account (maybe 3-4 percent of tax deferred accounts). Interest is paid back to me, so I suppose I could think of it like a bond. I have stable employment but.. if it hit the fan I could sell assets in taxable to cover it. I don't keep a lot of cash, try to stay invested.
This way.. no need to sell anything and pay tax on it, no need to apply/appraisal/expense for heloc. Only downside is those funds will be "out of the market" for the length of the loan.
Thoughts?
Statistics: Posted by waitforit — Wed Sep 18, 2024 10:47 pm