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Thread: Major Purchase: Tap IRA or finance?
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Old 06-07-2014, 07:06 PM
buzzy buzzy is offline
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Quote:
Originally Posted by JMEZARIC3 View Post
A RV is not an investment.After 5 years your RV is worth a lot less than you paid.A RV is a life style.If you cannot afford the monthly payments without using your retirement funds,don't buy.You can stay many nights at the Holiday Inn for the cost and expense of a RV.
Do not finance the RV for 15 years,the most commonly quoted monthly payment in the RV dealer ads. You will be upside down for 14 years.Payoff the loan in 5 years.
But if you have money in your retirement fund that you will never need.Buy the RV.Don't worry about the kids.
I expect to be upside down when I sell it in 5 - 10 years. That's part of the cost of ownership. I know that some say to never finance a depreciating asset. But, the tax burden of drawing from an IRA changes the situation. Down the road, I'll take something out of the IRA to cover the shortfall, and only pay income taxes on that amount.