N2Deep wrote:Sorry... I can't be more specific on the type of account it's in. I don't fill comfortable sharing that info. There is no additional taxes or penalties associated with these funds. I can say that within a couple days I could have my hands on it to send it in as payment if that's what I decided to do.
Okay, to each his own. I think bpgui was just trying to figure out if it was a 401(k), IRA, or similar that would trigger penalties. Even selling standard taxable accounts may result in capital gains and, thereby, capital gains taxes. But assuming that there is no penalty or tax associated with taking the money out of wherever you have it, you have to consider the lost compound savings you would have by pulling it out now. It's difficult for any of us to assess, because without more information, we have no idea what sort of potential the retirement monies have now. Also, I'm not sure we know yet how many more years you want to work before retirement and then how long you assume you will live after retirement. Those need to be taken into account because different answers will have big impacts on what advice we would give here. Personally, I would seriously hesitate to part with funds that are already parked in retirement accounts.
Edit: For example, if your retirement money is in stocks or mutual funds, I probably would leave it alone. If it is cash hidden in your mattress, I would put it use at least part of it to pay down debt and save or invest whatever is left. If it is ownership of an object that it presently valued ~$7k (or whatever number you said before), then I would likely sell it and, again, use at least part to pay down debt and part to save or invest. If you are planning to retire 40 years from now, using the money for debt might be okay, but if you are trying to retire in 5 years, getting rid of it now is probably far too constraining on your future. So you see, to get any sort of helpful advice, you probably do need to provide some more information, but at least you can get a feel for what sorts of things we would take into account.