The article discusses a couple facing a financial dilemma regarding whether to withdraw from their retirement accounts to eliminate credit card debt. Although they earn a combined income of approximately $400,000, the couple's high living expenses in Los Angeles and unexpected costs from a recent move put them in a tight spot. The writer highlights the significant financial implications of such withdrawals, particularly for those under 59 1/2, stressing the importance of understanding potential unrealized gains and the necessity for wise decision-making in financial matters.
Withdrawing money from a retirement account to pay existing debt can be quite costly for those under the age of 59 1/2.
It's difficult to factor in how much a retirement account withdrawal will cost in terms of unrealized gains.
Sometimes, what 'feels' right isn't the wisest move.
The couple's combined income is roughly $400,000, although they expect it to grow significantly over the next two years.
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