I am currently a teacher but in August I will start law school. I’ve only been teaching for four years so there isn’t much in my retirement account but it’s about 17k. My initial plan was to withdraw it, eat the 20% initial tax and then the 10% next year, effectively leaving me with 12k. My living will be covered during law school but I’ll still have to pay my car note, so I was gonna take about 5k to pay the car note for the 9 months with a little left over, get a job in the summer, and save that money to pay the note during second year, and so on.
BUT, I was thinking, maybe it would be smarter to roll that retirement money over to something like an IRA and then withdraw the car money from that? Or some other account that doesn’t have as steep of penalties? And leave the remainder in there or in some other type of investment.
The other option would be to just withdraw the money, 12k after every thing, put some aside for the car, and put the rest towards tuition to decrease loans.
As you can tell, I know next to nothing about financial stuff but I do have a meeting with my friend’s planner, soon, so I’d like to have an idea of what to tell him. Any advice is appreciated. Thanks.
Submitted April 20, 2020 at 10:49PM by jbp1586 https://ift.tt/3asiOQC
