Q: Is it a good idea to cash in my Roth IRA worth $12000 to pay off a credit card of $9000 & a student loan of $3000. My retirement is $158000.
A: This is very difficult to answer without knowing all of the details of your personal situation including income, risk tolerance, time horizon, return expectations, etc. In general, we suggest that investors focus on paying off any credit card balances with interest rates of greater than 7%. We encourage them to dedicate all excess cash flow to paying these off. Also, you should explore 0% interest credit cards that may allow you the opportunity to pay off more of the principal balance sooner and more aggressively. You can seek these opportunities that may be encouraged by new business.
If you would like to sit down with one of our advisers to discuss this in more detail, feel free to reach out and schedule a free one-hour consultation.
