WCI #142: Should You Raid a Roth IRA To Pay Off Your Loans?

White Coat Investor Podcast

Dr. Jim Dahle of the White Coat Investor

Medicine, Health & Fitness, Business, Investing

4.9 • 2.3K Ratings

🗓️ 23 January 2020

⏱️ 51 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Should you raid your Roth IRA to pay off your student loans? No, I think raiding your Roth IRA for any reason is a bad decision. You only get so much Roth space in your life. Raiding the Roth IRA for anything except retirement is not a good idea because that money is compounding tax-free for years, and the longer you let it do that, the more valuable that benefit becomes. But the Roth IRA has other benefits too. It is great for estate planning. Even with the recent changes in the estate tax laws, you can still stretch a Roth IRA for 10 years after you die. So basically it can double in value before anyone has to take anything out of it. Plus you can name a beneficiary for it, so rather than having to wait for it to go through a will and go through probate and become public, it just goes straight to the beneficiary. It is also very good in almost every state for asset protection. Money in retirement accounts is generally not touchable in the event of an above policy limits judgment that isn't reduced on appeal. That is another great reason not to raid your Roth IRA, especially to pay off a loan that goes away when you die. We discuss this question of raiding your Roth IRA in more depth in this episode as well as discuss the state of this podcast in the last year including the best and worst episodes we've put out and a long rant on podcast guests and questions. Leave your comments about this episode at https://www.whitecoatinvestor.com/classic-blog/

If you’re looking to Boost Returns, Lower Taxes & Build Wealth, join the WCI monthly Real Estate Opportunities list for tips and strategies to maximize your real estate returns and for introductions to exclusive investment opportunities. Expect educational emails that introduce you to syndicators, fund companies, online courses, and online real estate platforms. Go to https://www.whitecoatinvestor.com/reopportunities to sign up today. You can do this and The White Coat Investor can help.

The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you!

Main Website: https://www.whitecoatinvestor.com
YouTube: https://www.whitecoatinvestor.com/youtube
Student Loan Advice: https://studentloanadvice.com
Facebook: https://www.facebook.com/thewhitecoatinvestor
Twitter: https://twitter.com/WCInvestor
Instagram: https://www.instagram.com/thewhitecoatinvestor
Subreddit: https://www.reddit.com/r/whitecoatinvestor
Online Courses: https://whitecoatinvestor.teachable.com
Newsletter: https://www.whitecoatinvestor.com/free-monthly-newsletter

Transcript

Click on a timestamp to play from that location

0:00.0	This is the White Coat Investor Podcast, where we help those who wear the white coat get a fair shake on Wall Street.
0:06.0	We've been helping doctors and other high-income professionals stop doing dumb things with their money since 2011.
0:12.0	Here is your host, Dr. Jim Dolly.
0:15.0	This is White Coat Investor,
0:19.0	Podcast number 142.
0:21.0	Should you rate a Roth IRA to pay off your loans? Welcome back. I know you probably
0:26.0	heard a podcast just last week, but it's actually been about a month since we recorded any.
0:30.3	And so we're excited to be back recording podcasts. We're recording this one today and the one that you'll hear in a couple of weeks today.
0:36.0	And it's going to be back behind the desk in front of the mic recording these podcasts.
0:41.0	We had a great Christmas and New Year's break. We went down to
0:43.9	Costa Rica as a family. It was a lot of fun. Thankfully, Katie lined up all the
0:48.1	arrangements because I was way too overloaded to be planning a trip. But I
0:52.2	said if she planned it, she could go wherever she wanted and I'd go along with a smile and enjoy it. But it really was a fun trip. We took the kids, we stayed on the beach for the first three days. We took them scuba diving, put them in an explore scuba class and so they had their pool day and they all did great.
1:06.8	So the next day, you know how it is out of the country if you're a scuba diver. They took our kids to 55 feet the next day and they all thought he was just incredible. So it really wasn't that great of a dive site
1:17.0	But it was when it's your first time underwater. It's pretty cool and we went up in the jungle did some
1:25.0	Ziplining actually one of the best ziplines I've ever been on. I've been on several in Central America and the Caribbean.
1:29.0	Also, I had some great hikes and did some cave exploration and really had a great time in Costa Rica.
1:34.8	Highly recommended if you get a chance to go, but it's one of the wonderful things about
1:38.2	having your financial ducks in a row is that you can go do stuff like that and not have to worry about it.
1:44.2	I get a lot of emails from people about trip insurance.
1:47.1	Should I buy trip insurance for this?
1:48.7	And you know, I'm kind of not a big fan of trip insurance.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Dr. Jim Dahle of the White Coat Investor, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Dr. Jim Dahle of the White Coat Investor and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.