No cash to invest, but I do have an old IRA - Posted by AJ Ohio

Posted by Greg Meade on September 08, 2003 at 22:38:07:

i asked the intlligent half of our family (my wife) about the loans i took and she said"you dummy…that was a 401K" So much for that, eh? I’m sure you are right, but it sure seems unfair to no give a person access to their own hard earned money without large penalties…will ask on John Hyre’s forum for a possible circumvention (is this even a word?) of this rule…you just know that there has to be one!

No cash to invest, but I do have an old IRA - Posted by AJ Ohio

Posted by AJ Ohio on September 01, 2003 at 19:23:25:

with about 20g in it, would you take the 10% hit and use it to invest in MH’s? Any other way to use it? It’s been with Mid Ohio about 8 months so it’s in a self directed IRA already, just trying to figure a way to make some cash now, thanks to all.

Re: No cash to invest, but I do have an old IRA - Posted by Greg Meade

Posted by Greg Meade on September 01, 2003 at 19:46:17:

instead of pulling your money and paying a 10% hit plus being taxed as income (up to 29%) why not go to your Bank and borrow 80%(100%) value on a compensatory loan. If it is earning say 2% and you can borrow at prime, you will only be paying 3% for the use of the dough and will only pay taxes on the money these funds earn for you. It is too hard to save money…and retirement is just around the corner for some of us! good investing!!!

Re: No cash to invest, but I do have an old IRA - Posted by AJ Ohio

Posted by AJ Ohio on September 02, 2003 at 11:07:00:

Greg, are you saying banks will loan money against an IRA? What is it I actually ask for? Thanks in advance for your wonderfull advice.

Re: No cash to invest, but I do have an old IRA - Posted by Bert NH

Posted by Bert NH on September 02, 2003 at 09:19:46:

Hey Greg - Good advice! Bert

Re: he is self-directing so really… - Posted by Greg Meade

Posted by Greg Meade on September 02, 2003 at 14:48:02:

he can loan himself the money out of the account, but needs to repay with interest. Have taken funds from a directed ira at work twice…once for medical, once for down on land for mobile/land package. Being self-directed i’m fairly sure this can be used as collateral without losing exempt status. good ? for John H???

Re: he is self-directing so really… - Posted by Dennie

Posted by Dennie on September 08, 2003 at 18:12:02:

I don’t want to rain on your parade, but I think that you will find by checking the IRS regulations that you cannot give yourself a loan from an IRA nor can you use an IRA for collateral for a loan.