Long time lurker and sometime poster here. I would appreciate your thoughts on financing new home construction, given the following scenario.
An individual has a defined pension program that will provide sufficient income in retirement. The risk of this pension's being reduced through legislative or financial problems of the provider is low.
The individual also has money in a 401K and has passed age 59 1/2
The idea is build a house, minimizing debt. The person has cash reserves covering about 1/3 of the projected cost. Once the house is built, an existing home will be sold which should cover the total cost enabling the person to be debt free. Should the person:
a) Use 401K withdrawals to fund construction directly. b) Use a HELOC on the existing home, with 401K draws as a supplement c) Use a conventional construction loan for the new house
Thanks in advance for your thoughts.
Submitted January 27, 2017 at 07:58AM by artweary http://ift.tt/2jm2MgP
