Jeeves discussed on Dave Ramsey

Automatic TRANSCRIPT

You Jeeves three year wine while that was an amazing job well done fifty six thousand paid off in thirty months as a single mom but her college age daughter does it man she does it that's amazing she said she saves up money the family tree is change the based god for car she's paying for her education she goes this is awesome very very well done Shelley congradulations very proud of you Amy is whether is in our Los Angeles hi Amy how are you hi I'm well how are you better than I deserve what's up alright I recently went through a divorce and I am in the process of rolling over the four oh one K. Q. traditional IRA I called the company and they asked me a surprise me and told me that about half of that is coded as after tax contributions in which case I have the option to either roll that portion over to a Roth IRA for I can pull it with no taxes and no penalties I double check that with a tax professional and they confirmed that I can pull that portion without taxes and penalties so given that I'm wondering if this still counts as cashing out retirement only to avoid thinker fuel for closure or yes because there's no taxes and penalties should I treat this like a non retirement assets and use it to pay off a lot of my debt be a it's a non retirement asset not pay off your debt you coming through divorce everything's changing how long were you married thirteen years and what is your income well I am a home school mom but I'm in the reserves also disabled that so I have a lot of different sources so putting it all together it's actually a pretty good about ninety five ninety five thousand okay that's my my SAT my and that I serve and that includes time sure I mean that includes child support does that include my child for something for everything to watch how much data are you getting out of this deal I do not like to actually divorce is final almost almost exactly one year ago okay I came out with fifty almost fifty seven thousand and the last year I paid off almost twenty four thousand and so I got another thirty three thousand ago and how much it will not how much is non how much is that you can pull out as that we're gonna treat like a non retirement asset twenty two five just about enough to fend thousand five hundred right in his okay I'm just thinking well here's the trade off okay there's nothing wrong with cashing that out and using it to pay off this debt and I probably would okay the possible trade off is is that your only about fourteen months from being debt free right at your current pace I mean you paid off twenty four last year you only have thirty three right right and so on I'm kind of tempted to let this money lay there and make you a millionaire even faster our since it's already in a retirement program because once we pull it out of this retirement program you can't put it back in there other than normal contributions right right is the opportunity cost of about four years worth of contribution yeah exactly you got it figured out if you even know the lingo so it's kind of on the bubble I yeah I'm probably gonna pull it and pay that that and then I'm just gonna usually increase cash flow to load up get my merchants to fund done make sure you're stabilized after this divorce and yeah yeah I'm gonna go and be debt free but it is a real good argument to go both ways this is the diagram.

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