Q&A: Should I Pay Off Debt with IRA or Sell a Rental Property?
Apr 15, 2017
USA Today - Q: My wife and I plan to retire early this year. Our IRAs, which are worth about $500,000, are stagnant. They haven't gained anything over the years. On the other hand, our three rental properties are gaining (after deductions) 6%, 6% and 3% in rental income. Each property has about $120,000 in equity. One property is paid off. Unfortunately, with fortune there is debt; we also have a $100,000 home equity line of credit on our primary residence that needs to be paid off soon. With this said, we are considering a couple of decisions to secure our financial future: 1) Sell one property and pay off the equity line, income tax and real estate fees. 2) And draw $80,000 from an IRA and pay off one rental property since they are prone to gain more than an IRA. Do these decisions make sense or is there a better one? – Jim Johnson
tags: Texas Tech in the News