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?

74 Responses to Did I Give The Right Advice? – Real Life Situation
  1. Kendall Lyde
    April 19, 2018 | 10:46 am

    Hi, I think your website might be having browser compatibility issues.When I look at your blog site in Chrome, it looks fine but when opening in Internet Explorer, it has some overlapping.I just wanted to give you a quick heads up! Other then that, wonderful blog!

  2. Fashion
    April 19, 2018 | 11:50 am

    You are my aspiration , I have few blogs and rarely run out from to brand.I think this internet site has some real great information for everyone. “It is easy enough to define what the Commonwealth is not. Indeed this is quite a popular pastime.” by Elizabeth II.

  3. Health and Fitness
    April 19, 2018 | 12:15 pm

    Hello there, You’ve done a fantastic job. I will certainly digg it and personally suggest to my friends. I’m confident they will be benefited from this web site.

  4. Health and Fitness
    April 19, 2018 | 12:37 pm

    Its superb as your other posts : D, appreciate it for posting . “It takes less time to do things right than to explain why you did it wrong.” by Henry Wadsworth Longfellow.

  5. RetsPro Ripoff
    April 19, 2018 | 1:16 pm

    RETSPRO ripoffs perhaps may be out there online, mainly by means of nulled/old copies of our RETSPRO plugin. There is only one legitimate place to buy our software and that is on our own RETS PRO website.

  6. Toddler Learning Games
    April 20, 2018 | 3:06 am

    You actually make it appear so easy together with your presentation but I find this topic to be actually something that I feel I would never understand. It seems too complex and very huge for me. I’m looking forward in your next submit, I¡¦ll try to get the hold of it!

  7. Game Educations
    April 20, 2018 | 3:07 am

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

  8. Home Design Ideas
    April 20, 2018 | 3:07 am

    hello!,I really like your writing very a lot! percentage we keep in touch more about your article on AOL? I need an expert in this house to solve my problem. May be that’s you! Taking a look forward to see you.

  9. Freelance Writing Online
    April 20, 2018 | 3:11 am

    Hello There. I found your blog using msn. This is a really well written article. I’ll make sure to bookmark it and come back to read more of your useful info. Thanks for the post. I will certainly comeback.

  10. News
    April 20, 2018 | 3:22 am

    I was suggested this web site by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my trouble. You’re amazing! Thanks!

  11. Health and Fitness
    April 20, 2018 | 7:24 am

    Keep up the wonderful work , I read few articles on this site and I conceive that your blog is real interesting and has got circles of excellent info .

  12. Health and Fitness
    April 20, 2018 | 9:39 am

    I have been absent for some time, but now I remember why I used to love this website. Thanks , I¡¦ll try and check back more often. How frequently you update your site?

  13. Health and Fitness
    April 20, 2018 | 12:00 pm

    I have recently started a website, the information you provide on this web site has helped me tremendously. Thank you for all of your time & work.

  14. Health and Fitness
    April 20, 2018 | 2:25 pm

    Magnificent web site. Lots of useful info here. I’m sending it to a few pals ans additionally sharing in delicious. And obviously, thanks to your sweat!

  15. Health and Fitness
    April 20, 2018 | 2:30 pm

    Hello there, You’ve done a great job. I will certainly digg it and personally recommend to my friends. I’m sure they’ll be benefited from this website.

  16. News
    April 20, 2018 | 3:23 pm

    Normally I don’t learn post on blogs, however I would like to say that this write-up very compelled me to take a look at and do it! Your writing taste has been amazed me. Thanks, very nice post.

  17. Health and Fitness
    April 20, 2018 | 4:03 pm

    Hello There. I found your blog using msn. This is an extremely well written article. I’ll be sure to bookmark it and return to read more of your useful info. Thanks for the post. I will definitely comeback.

  18. Health and Fitness
    April 20, 2018 | 5:09 pm

    Good write-up, I’m normal visitor of one’s website, maintain up the excellent operate, and It is going to be a regular visitor for a long time.

  19. Health and Fitness
    April 20, 2018 | 6:57 pm

    I needed to put you the very small word in order to thank you so much the moment again for all the magnificent concepts you’ve provided in this case. It has been so wonderfully generous of people like you giving openly just what a number of people could have marketed as an e-book to help make some profit on their own, even more so given that you could possibly have tried it if you wanted. Those good ideas as well served to be a easy way to recognize that other individuals have the same eagerness really like mine to find out way more with respect to this issue. Certainly there are lots of more pleasurable occasions in the future for many who find out your site.

  20. Health and Fitness
    April 20, 2018 | 7:55 pm

    Excellent read, I just passed this onto a colleague who was doing a little research on that. And he just bought me lunch because I found it for him smile Thus let me rephrase that: Thank you for lunch! “One who’s our friend is fond of us one who’s fond of us isn’t necessarily our friend.” by Geoffrey F. Albert.

  21. Health and Fitness
    April 20, 2018 | 9:30 pm

    wonderful points altogether, you just gained a emblem new reader. What could you recommend in regards to your submit that you made a few days in the past? Any certain?

  22. Health and Fitness
    April 20, 2018 | 9:52 pm

    Great blog! I am loving it!! Will be back later to read some more. I am bookmarking your feeds also

  23. Harland Spiney
    April 20, 2018 | 11:48 pm

    HiWhat’s upHi thereHello, yupyeahyesof course this articlepostpiece of writingparagraph is reallyactuallyin facttrulygenuinely nicepleasantgoodfastidious and I have learned lot of things from it regardingconcerningabouton the topic of blogging. thanks.

  24. News
    April 21, 2018 | 2:25 am

    Thank you for sharing excellent informations. Your web site is so cool. I am impressed by the details that you have on this blog. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for more articles. You, my pal, ROCK! I found just the information I already searched all over the place and just couldn’t come across. What an ideal website.

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?

74 Responses to Did I Give The Right Advice? – Real Life Situation
  1. Kendall Lyde
    April 19, 2018 | 10:46 am

    Hi, I think your website might be having browser compatibility issues.When I look at your blog site in Chrome, it looks fine but when opening in Internet Explorer, it has some overlapping.I just wanted to give you a quick heads up! Other then that, wonderful blog!

  2. Fashion
    April 19, 2018 | 11:50 am

    You are my aspiration , I have few blogs and rarely run out from to brand.I think this internet site has some real great information for everyone. “It is easy enough to define what the Commonwealth is not. Indeed this is quite a popular pastime.” by Elizabeth II.

  3. Health and Fitness
    April 19, 2018 | 12:15 pm

    Hello there, You’ve done a fantastic job. I will certainly digg it and personally suggest to my friends. I’m confident they will be benefited from this web site.

  4. Health and Fitness
    April 19, 2018 | 12:37 pm

    Its superb as your other posts : D, appreciate it for posting . “It takes less time to do things right than to explain why you did it wrong.” by Henry Wadsworth Longfellow.

  5. RetsPro Ripoff
    April 19, 2018 | 1:16 pm

    RETSPRO ripoffs perhaps may be out there online, mainly by means of nulled/old copies of our RETSPRO plugin. There is only one legitimate place to buy our software and that is on our own RETS PRO website.

  6. Toddler Learning Games
    April 20, 2018 | 3:06 am

    You actually make it appear so easy together with your presentation but I find this topic to be actually something that I feel I would never understand. It seems too complex and very huge for me. I’m looking forward in your next submit, I¡¦ll try to get the hold of it!

  7. Game Educations
    April 20, 2018 | 3:07 am

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

  8. Home Design Ideas
    April 20, 2018 | 3:07 am

    hello!,I really like your writing very a lot! percentage we keep in touch more about your article on AOL? I need an expert in this house to solve my problem. May be that’s you! Taking a look forward to see you.

  9. Freelance Writing Online
    April 20, 2018 | 3:11 am

    Hello There. I found your blog using msn. This is a really well written article. I’ll make sure to bookmark it and come back to read more of your useful info. Thanks for the post. I will certainly comeback.

  10. News
    April 20, 2018 | 3:22 am

    I was suggested this web site by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my trouble. You’re amazing! Thanks!

  11. Health and Fitness
    April 20, 2018 | 7:24 am

    Keep up the wonderful work , I read few articles on this site and I conceive that your blog is real interesting and has got circles of excellent info .

  12. Health and Fitness
    April 20, 2018 | 9:39 am

    I have been absent for some time, but now I remember why I used to love this website. Thanks , I¡¦ll try and check back more often. How frequently you update your site?

  13. Health and Fitness
    April 20, 2018 | 12:00 pm

    I have recently started a website, the information you provide on this web site has helped me tremendously. Thank you for all of your time & work.

  14. Health and Fitness
    April 20, 2018 | 2:25 pm

    Magnificent web site. Lots of useful info here. I’m sending it to a few pals ans additionally sharing in delicious. And obviously, thanks to your sweat!

  15. Health and Fitness
    April 20, 2018 | 2:30 pm

    Hello there, You’ve done a great job. I will certainly digg it and personally recommend to my friends. I’m sure they’ll be benefited from this website.

  16. News
    April 20, 2018 | 3:23 pm

    Normally I don’t learn post on blogs, however I would like to say that this write-up very compelled me to take a look at and do it! Your writing taste has been amazed me. Thanks, very nice post.

  17. Health and Fitness
    April 20, 2018 | 4:03 pm

    Hello There. I found your blog using msn. This is an extremely well written article. I’ll be sure to bookmark it and return to read more of your useful info. Thanks for the post. I will definitely comeback.

  18. Health and Fitness
    April 20, 2018 | 5:09 pm

    Good write-up, I’m normal visitor of one’s website, maintain up the excellent operate, and It is going to be a regular visitor for a long time.

  19. Health and Fitness
    April 20, 2018 | 6:57 pm

    I needed to put you the very small word in order to thank you so much the moment again for all the magnificent concepts you’ve provided in this case. It has been so wonderfully generous of people like you giving openly just what a number of people could have marketed as an e-book to help make some profit on their own, even more so given that you could possibly have tried it if you wanted. Those good ideas as well served to be a easy way to recognize that other individuals have the same eagerness really like mine to find out way more with respect to this issue. Certainly there are lots of more pleasurable occasions in the future for many who find out your site.

  20. Health and Fitness
    April 20, 2018 | 7:55 pm

    Excellent read, I just passed this onto a colleague who was doing a little research on that. And he just bought me lunch because I found it for him smile Thus let me rephrase that: Thank you for lunch! “One who’s our friend is fond of us one who’s fond of us isn’t necessarily our friend.” by Geoffrey F. Albert.

  21. Health and Fitness
    April 20, 2018 | 9:30 pm

    wonderful points altogether, you just gained a emblem new reader. What could you recommend in regards to your submit that you made a few days in the past? Any certain?

  22. Health and Fitness
    April 20, 2018 | 9:52 pm

    Great blog! I am loving it!! Will be back later to read some more. I am bookmarking your feeds also

  23. Harland Spiney
    April 20, 2018 | 11:48 pm

    HiWhat’s upHi thereHello, yupyeahyesof course this articlepostpiece of writingparagraph is reallyactuallyin facttrulygenuinely nicepleasantgoodfastidious and I have learned lot of things from it regardingconcerningabouton the topic of blogging. thanks.

  24. News
    April 21, 2018 | 2:25 am

    Thank you for sharing excellent informations. Your web site is so cool. I am impressed by the details that you have on this blog. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for more articles. You, my pal, ROCK! I found just the information I already searched all over the place and just couldn’t come across. What an ideal website.

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