things to consider:
* is this a home for your personal use or for investment purposes?
* does the fund allow for a complete disbursement at age 70 to purchase the home or would you use a disbursement to fund a downpayment and keep it outside of the retirement account?
* if you are going to keep the home in the retirement account,
* when does the account start requiring mandatory disbursements?
* how will you cover any expenses for maintenance, repair, taxes etc?
Lastly, be aware of the difference in tax treatments for money being disbursed from a retirement account (ordinary income) vs. sale of a property (capital gains).
there are quite a lot of things to consider - but given your ages and the fact that most accounts start requiring mandatory distributions at age 70, it could be difficult to have real estate inside a retirement account.
I do know of some good financial planners - if I can be of assistance, let me know.
The disadvantages are you pulling retirement money out that you may need at some point in the future and you're losing whatever rate of return it's generating.
Whether this is a good strategy is hard for any one of us who responds to say. We don't know enough about your financial status in specific; nor are the majority of us certified as financial planners, advisers etc. This is something you should be discussing with your financial adviser.
You have provided only one option and that is use retirement fund.
Advantages / disadvantages can only be assessed along side other options.
Clearly using 'cheap' money is better than expensive money, but opportunity costs must be considered.
Eventually, your purchase objective must be known? Are you going to move right in? Is this a second, third, vacation home? An income earning investment? If you could OWN the home, modify, buy/sell as you see fit and only pay 60% of the list price, how would that influence your decision?
You truly have a world of options, the one best for you is entirely dependent on your situation, goals and objectives.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
http://FirstLookHomes.us Palm Harbor University High School district http://annettelawrence.mfr.mlxchange.com/?Page=-1
You may simply weigh the differences in ROI based on keeping the funds there and making a purchase where you make mortgage payments on the property. Again, a question best posed to your accountant.
When buying a house there are 2 ways to look at it. One is the investment and the other is quality of life.
Buying a house right now is a great investment but you definitely want to talk with your financial advisor. Because the cost of money is so cheap it may be worth it to take a loan. If your retirement fund is getting better than 4% per year growth a loan might make sense. Again, please consult a financial advisor and an accountant.
If a loan isn't an option for you the decision will have to be based on where you and your husband will be most happy. Maine certainly offers a lot to be happy about. Have you ever lived here? If you want community information or any other information about Maine let me know, I am happy to help.