Did I Give The Right Advice? – Real Life Situation

I think this is going to become a new series for me. At least until friends stop telling me about their financial issues.

I gave a friend some advice yesterday. I am not sure if it was the 100% proper advice, but I think it was good. Keep reading and let me know.

Real Life Situation

$2,000 in IRA
($10,000) in credit card debt at 4.3% interest (24 month introductory rate)

Should she take the money in her IRA out and pay off some of the debt.

Other things to consider: She is currently paying down the debt an extra $500 a month. My guess is that it will be 15 months and they will be debt free.

My Advice

I told my friend that she should either not touch her IRA or consider converting it to their Roth if they were annoyed that it was sitting in a traditional IRA. I thought that completely pulling it out was a bad idea because of the 10% penalty for pulling funds out of an IRA.

She responded to this advice “it would only cost $200 to pay off $1800 in debt”. While technically correct, I rephrased it for my friend. I said, “if it was $200 for $1,800 or $200K for $1.8M, it shouldn’t make a difference. 10% is 10% and thinking like an economist, the person should try to optimize every dollar they have or will receive.

So how did I do? Is this what you would have advised?

2,879 Responses to Did I Give The Right Advice? – Real Life Situation
  1. Kiana Burwood
    November 15, 2018 | 9:00 pm

    using wooden wall decors at home is a great alternative to using those expensive metal wall decors;

  2. Computer & Technology
    November 15, 2018 | 9:34 pm

    My brother suggested I might like this blog. He was totally right. This post actually made my day. You cann’t imagine just how much time I had spent for this info! Thanks!

  3. Health & Fitness
    November 15, 2018 | 9:35 pm

    Great blog here! Also your website loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as fast as yours lol

  4. Health & Fitness
    November 15, 2018 | 9:36 pm

    Hello, i think that i saw you visited my weblog so i came to “return the favor”.I am attempting to find things to improve my web site!I suppose its ok to use a few of your ideas!!

  5. Computer & Technology
    November 15, 2018 | 9:55 pm

    I do not even know how I ended up here, but I thought this post was great. I don’t know who you are but definitely you are going to a famous blogger if you are not already 😉 Cheers!

  6. Computer & Technology
    November 15, 2018 | 10:19 pm

    Whats Taking place i am new to this, I stumbled upon this I’ve discovered It positively helpful and it has helped me out loads. I’m hoping to contribute & help other customers like its helped me. Great job.

  7. computer product
    November 15, 2018 | 11:09 pm

    I’ve been browsing on-line greater than three hours today, but I never discovered any attention-grabbing article like yours. It is lovely worth enough for me. Personally, if all webmasters and bloggers made excellent content material as you probably did, the internet might be a lot more helpful than ever before.

  8. Property
    November 15, 2018 | 11:11 pm

    Thanks for another informative site. The place else could I am getting that kind of info written in such an ideal approach? I have a venture that I am just now operating on, and I’ve been on the glance out for such information.

  9. Makeup Brushes
    November 15, 2018 | 11:42 pm

    Excellent read, I just passed this onto a colleague who was doing a little research on that. And he just bought me lunch since I found it for him smile Thus let me rephrase that: Thanks for lunch!

  10. Health Tips
    November 16, 2018 | 12:01 am

    wonderful submit, very informative. I wonder why the opposite experts of this sector don’t realize this. You should proceed your writing. I’m confident, you have a huge readers’ base already!

  11. Department Of Health
    November 16, 2018 | 12:15 am

    Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how could we communicate?

  12. Health Food
    November 16, 2018 | 12:31 am

    fantastic points altogether, you just gained a brand new reader. What may you recommend about your publish that you simply made some days in the past? Any certain?

  13. Health Facts
    November 16, 2018 | 1:14 am

    There is apparently a lot to identify about this. I believe you made some good points in features also.

  14. Health Gov
    November 16, 2018 | 1:22 am

    Hi there, I found your site by way of Google at the same time as looking for a related subject, your web site got here up, it seems to be good. I have bookmarked it in my google bookmarks.

  15. Contractor House
    November 16, 2018 | 2:27 am

    You really make it seem so easy with your presentation but I to find this matter to be actually something that I feel I might never understand. It seems too complicated and extremely extensive for me. I am looking forward to your subsequent put up, I will try to get the grasp of it!

  16. web design agencies
    November 16, 2018 | 2:33 am

    you are really a just right webmaster. The site loading pace is incredible. It sort of feels that you’re doing any distinctive trick. Moreover, The contents are masterwork. you have performed a great activity on this subject!

  17. small business ideas
    November 16, 2018 | 2:34 am

    I am only writing to make you be aware of of the fine encounter my friend’s princess gained visiting yuor web blog. She discovered a lot of details, including what it’s like to possess a marvelous teaching style to make certain people smoothly completely grasp a variety of multifaceted topics. You actually exceeded people’s desires. Thanks for displaying these effective, dependable, edifying and as well as easy tips on this topic to Kate.

  18. kitchen remodel ideas
    November 16, 2018 | 2:35 am

    hi!,I really like your writing so so much! proportion we keep up a correspondence more approximately your article on AOL? I require a specialist on this area to unravel my problem. Maybe that is you! Taking a look forward to peer you.

  19. Men'S Health
    November 16, 2018 | 3:02 am

    You are a very bright individual!

  20. homosexual
    November 16, 2018 | 4:27 am

    Hi! I simply want to offer you a huge thumbs up for the great info you’ve got here on this post. I’ll be coming back to your web site for more soon.

  21. Health Magazine
    November 16, 2018 | 5:36 am

    As I web-site possessor I believe the content material here is rattling wonderful , appreciate it for your hard work. You should keep it up forever! Best of luck.

  22. gucci
    November 16, 2018 | 6:50 pm

    we came across a cool site that you may delight in. Take a look if you want

  23. burberry
    November 16, 2018 | 9:48 pm

    The info mentioned within the report are a number of the top readily available

Trackbacks/Pingbacks
  1. http://altaasia.kz/?option=com_k2&view=itemlist&task=user&id=257469
  2. http://www.ryokoo.info/2018/10/28/burger-king-menu-prices-browse-more-deeply-in-order-to-make-a-qualified-final-choice/
  3. پمپ مه پاش
  4. https://allthingscrypto.tech/blocnation/
  5. 123Movies
  6. کولر سوله
Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/did-i-give-the-right-advice-real-life-situation/trackback/

Did I Give The Right Advice? – Real Life Situation

I think this is going to become a new series for me. At least until friends stop telling me about their financial issues.

I gave a friend some advice yesterday. I am not sure if it was the 100% proper advice, but I think it was good. Keep reading and let me know.

Real Life Situation

$2,000 in IRA
($10,000) in credit card debt at 4.3% interest (24 month introductory rate)

Should she take the money in her IRA out and pay off some of the debt.

Other things to consider: She is currently paying down the debt an extra $500 a month. My guess is that it will be 15 months and they will be debt free.

My Advice

I told my friend that she should either not touch her IRA or consider converting it to their Roth if they were annoyed that it was sitting in a traditional IRA. I thought that completely pulling it out was a bad idea because of the 10% penalty for pulling funds out of an IRA.

She responded to this advice “it would only cost $200 to pay off $1800 in debt”. While technically correct, I rephrased it for my friend. I said, “if it was $200 for $1,800 or $200K for $1.8M, it shouldn’t make a difference. 10% is 10% and thinking like an economist, the person should try to optimize every dollar they have or will receive.

So how did I do? Is this what you would have advised?

2,879 Responses to Did I Give The Right Advice? – Real Life Situation
  1. Kiana Burwood
    November 15, 2018 | 9:00 pm

    using wooden wall decors at home is a great alternative to using those expensive metal wall decors;

  2. Computer & Technology
    November 15, 2018 | 9:34 pm

    My brother suggested I might like this blog. He was totally right. This post actually made my day. You cann’t imagine just how much time I had spent for this info! Thanks!

  3. Health & Fitness
    November 15, 2018 | 9:35 pm

    Great blog here! Also your website loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as fast as yours lol

  4. Health & Fitness
    November 15, 2018 | 9:36 pm

    Hello, i think that i saw you visited my weblog so i came to “return the favor”.I am attempting to find things to improve my web site!I suppose its ok to use a few of your ideas!!

  5. Computer & Technology
    November 15, 2018 | 9:55 pm

    I do not even know how I ended up here, but I thought this post was great. I don’t know who you are but definitely you are going to a famous blogger if you are not already 😉 Cheers!

  6. Computer & Technology
    November 15, 2018 | 10:19 pm

    Whats Taking place i am new to this, I stumbled upon this I’ve discovered It positively helpful and it has helped me out loads. I’m hoping to contribute & help other customers like its helped me. Great job.

  7. computer product
    November 15, 2018 | 11:09 pm

    I’ve been browsing on-line greater than three hours today, but I never discovered any attention-grabbing article like yours. It is lovely worth enough for me. Personally, if all webmasters and bloggers made excellent content material as you probably did, the internet might be a lot more helpful than ever before.

  8. Property
    November 15, 2018 | 11:11 pm

    Thanks for another informative site. The place else could I am getting that kind of info written in such an ideal approach? I have a venture that I am just now operating on, and I’ve been on the glance out for such information.

  9. Makeup Brushes
    November 15, 2018 | 11:42 pm

    Excellent read, I just passed this onto a colleague who was doing a little research on that. And he just bought me lunch since I found it for him smile Thus let me rephrase that: Thanks for lunch!

  10. Health Tips
    November 16, 2018 | 12:01 am

    wonderful submit, very informative. I wonder why the opposite experts of this sector don’t realize this. You should proceed your writing. I’m confident, you have a huge readers’ base already!

  11. Department Of Health
    November 16, 2018 | 12:15 am

    Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how could we communicate?

  12. Health Food
    November 16, 2018 | 12:31 am

    fantastic points altogether, you just gained a brand new reader. What may you recommend about your publish that you simply made some days in the past? Any certain?

  13. Health Facts
    November 16, 2018 | 1:14 am

    There is apparently a lot to identify about this. I believe you made some good points in features also.

  14. Health Gov
    November 16, 2018 | 1:22 am

    Hi there, I found your site by way of Google at the same time as looking for a related subject, your web site got here up, it seems to be good. I have bookmarked it in my google bookmarks.

  15. Contractor House
    November 16, 2018 | 2:27 am

    You really make it seem so easy with your presentation but I to find this matter to be actually something that I feel I might never understand. It seems too complicated and extremely extensive for me. I am looking forward to your subsequent put up, I will try to get the grasp of it!

  16. web design agencies
    November 16, 2018 | 2:33 am

    you are really a just right webmaster. The site loading pace is incredible. It sort of feels that you’re doing any distinctive trick. Moreover, The contents are masterwork. you have performed a great activity on this subject!

  17. small business ideas
    November 16, 2018 | 2:34 am

    I am only writing to make you be aware of of the fine encounter my friend’s princess gained visiting yuor web blog. She discovered a lot of details, including what it’s like to possess a marvelous teaching style to make certain people smoothly completely grasp a variety of multifaceted topics. You actually exceeded people’s desires. Thanks for displaying these effective, dependable, edifying and as well as easy tips on this topic to Kate.

  18. kitchen remodel ideas
    November 16, 2018 | 2:35 am

    hi!,I really like your writing so so much! proportion we keep up a correspondence more approximately your article on AOL? I require a specialist on this area to unravel my problem. Maybe that is you! Taking a look forward to peer you.

  19. Men'S Health
    November 16, 2018 | 3:02 am

    You are a very bright individual!

  20. homosexual
    November 16, 2018 | 4:27 am

    Hi! I simply want to offer you a huge thumbs up for the great info you’ve got here on this post. I’ll be coming back to your web site for more soon.

  21. Health Magazine
    November 16, 2018 | 5:36 am

    As I web-site possessor I believe the content material here is rattling wonderful , appreciate it for your hard work. You should keep it up forever! Best of luck.

  22. gucci
    November 16, 2018 | 6:50 pm

    we came across a cool site that you may delight in. Take a look if you want

  23. burberry
    November 16, 2018 | 9:48 pm

    The info mentioned within the report are a number of the top readily available

Trackbacks/Pingbacks
  1. http://altaasia.kz/?option=com_k2&view=itemlist&task=user&id=257469
  2. http://www.ryokoo.info/2018/10/28/burger-king-menu-prices-browse-more-deeply-in-order-to-make-a-qualified-final-choice/
  3. پمپ مه پاش
  4. https://allthingscrypto.tech/blocnation/
  5. 123Movies
  6. کولر سوله
Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/did-i-give-the-right-advice-real-life-situation/trackback/