Baby Boomers and their assets

[Coronita]

Since we’re on the topic of taxes… I got a new scenario for folks to figure out… (I don’t know the answer)…

1. Suppose you borrowed $50k from your traditional 401k…
2. Suppose you also have a Roth 401k….

Now you decided you want to pay back your 401k because you don’t want an outstanding loan… BUT, you really don’t want your total 401k (both traditional and roth account) value to really increase by $50k… (for sake of argument, you feel you don’t want to put $50k back into the stock/bond markets)…

Can you withdraw from your Roth 401k $50k, ALL from CONTRIBUTION portion without incurring a tax (since it was money you contributed after taxes)… and use that money to payback off the outstanding loan on your traditional 401k….

[an]

[quote=flu]Since we’re on the topic of taxes… I got a new scenario for folks to figure out… (I don’t know the answer)…

1. Suppose you borrowed $50k from your traditional 401k…
2. Suppose you also have a Roth 401k….

Now you decided you want to pay back your 401k because you don’t want an outstanding loan… BUT, you really don’t want your total 401k (both traditional and roth account) value to really increase by $50k… (for sake of argument, you feel you don’t want to put $50k back into the stock/bond markets)…

Can you withdraw from your Roth 401k $50k, ALL from CONTRIBUTION portion without incurring a tax (since it was money you contributed after taxes)… and use that money to payback off the outstanding loan on your traditional 401k….[/quote]
It all depends on your 401k. I’m not sure if you can withdraw from ROTH 401k (even if it’s just the contribution part). Maybe your 401k allow it, but mine only allow a hardship withdrawal while I’m still working for the company. However, my 401k rock in a sense that it allow me to be in cash. You might see if that option is for you and you can put in $50k and just leave it in cash if you don’t want to be in the market.

[FlyerInHi]

I think that reverse mortgage have a future.
It might be wise to invest now.

older people on this board might be financially secure but that doesn’t speak for the rest of the nation.

[The-Shoveler]

I definitely think reverse mortgage will be big for boomers.

If they can get about 50% equity in a house, it will allow them to live payment free.

This is the only way I would use it, If it was owned outright I would not do this IMO.

Just make sure everyone who needs to be on the mortgage is on it. That seems to be the biggest issue that comes up.

[FlyerInHi]

we need to find a way to live another 100 years to see population declines worldwide. I wonder what that will do to real estate.

In the mean time, richer populations in emerging markets are increasing the demand for real estate in big metros around the globe.

[The-Shoveler]

I saw an article that LA/OC/SD were going to become one big mega City over the next 50 or so years.
Kind of like driving on the 5 from Anaheim until you get to Castaic LOL.
I hope they have automated flying cars.

[The-Shoveler]

I guess we should be hoping Texas steals more of Ca population.
At this point I honestly don’t think it will make a dent.

[SK in CV]

[quote=The-Shoveler]
Just make sure everyone who needs to be on the mortgage is on it. That seems to be the biggest issue that comes up.[/quote]

What do you mean by this?

[The-Shoveler]

Very Simple,
Lets say you have a husband & wife, If the Husband only puts the reverse mortgage in his name.
And the husband kicks the bucket; usually the surviving wife gets booted from the home.
Everyone in the home who expects to be in the house till they “kick it” needs to be on the mortgage.

At least that is the way I understand it.

[Author]

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