Newspaper article The Topeka Capital-Journal

Home Purchase Is Risky Step as Part of Retirement Plan

Newspaper article The Topeka Capital-Journal

Home Purchase Is Risky Step as Part of Retirement Plan

Article excerpt

Dear Bruce: I'm 67, single and working full-time at a job I love and intend to continue working at. I want to purchase a home for around $50,000. I don't want to have many bills when I retire. I have about $68,000 in my 401(k) and $9,000 in company stock. If I take a loan out of my 401(k), I could take out 50 percent and not have to pay taxes on it, but I would lose the potential earning of that amount. I could pay myself back over five years at about $600 a month. Is that the best way to do this? -- E.N.

Dear E.N.: At your age, I don't see any reason for you to purchase a home. Leasing a condo or a small home would be a far better way to go. Even the smallest of homes in most areas would exhaust all of your liquidity, and that is a big mistake at any age. I would be looking at rental properties in a modest area.

Dear Bruce: My aunt was married for almost 20 years and raised her kids on her own. …

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