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Is it better to use home equity or retirement to temporarily make ends meet?

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Home Equity

We are married in our 40’s with a baby. I am stay at home mom and my husband was laid off. We have two homes and no debt aside from mortgages. Should we use our home equity or cash in retirement to make ends meet until we have another income?

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    Do not cash in retirement, unless it’s in a Roth IRA, and then, only take out what you contributed. Otherwise you will have to pay taxes PLUS a 10% penalty on it. After it’s all said and done, you’re only going to get around 55 cents on the dollar for the money you take out of your retirement.

    Nathan K - Sep 07, 2012 | Reply


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