Major Purchase: Tap IRA or finance?
First, I know, this is a question for my financial planner and tax attorney, but I thought I could get enough advice to frame my thinking on this. So if you have helpful advice you'd like to share, please do.
We are considering purchasing a motorhome to use for 4-5 years of extensive traveling, to get it out of our system. We would be buying used to minimize depreciation. The type we are looking at would cost about as much as 10% of what we have in our IRA. I'm wondering if it would be better to tap the IRA and pay cash or should we finance? I know that we'd have to pay income tax for the amount we withdraw. We would also lose the gains we would earn by keeping those funds in stocks and bonds. But financing comes with interest. Though, a motorhome counts as a vacation home and the interest is deductible. Are there any other benefits or hazards I haven't considered? TIA
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