01classicxj
NAXJA Forum User
- Location
- Dickinson, TX
XJ's are a hobby vehicle....not an investment. We do it because we love it.
That's part of the price we pay.
As far as borrowing on IRA's....don't ever do it.
You pay your tax rate(20-25% depending on your income) on the money you pull out and pay fees on top of that.....unless you are older that 59.5yrs old.
Hobbies are called hobbies for a reason....they are payed for with extra cash.
Cash being the key word.
Happy Memorial Day to all.
Be safe and enjoy those XJ's!!!
I guess some IRA's are different. There is no tax rate i pay. I borrowed from it. It's like a personal loan to myself with a low 4.5% interest rate that i pay to myself. Something My job and Vanguard has setup. My job has rules of course set up. I can borrow up to half only of the total in the account. Cannot get a new loan until i pay off existing loan. Can pay off early if i want. Something else i can also do. I can take a withdrawal only once per calendar year. If i wanted to do that instead. If i do that, yes, Vanguard takes 20% off the top and sends me a 1099 form. Then i have to also pay the 10% penalty when i do my income tax. Would do that only in emergency's. The loan's though work out for me.