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  • Derf December 2018
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musing heloc / cashflow / savings dance --- thoughts wanted

davidrmorandavidrmoran
edited December 2018 in Off-Topic
Looking ahead to next year and planning where to get the needed cashflow from (~$50k and more), and also carrying a similar if not larger balance on our 4.25% heloc, I got to thinking ....

Partly this was because my nonfinancial wife said, Wait, why are we not starting to pay down the heloc this year, hopefully to zero, esp if its interest is no longer deductible?

So without getting into whether we declare use of the heloc for roof repairs :), I am trying to think clearly about 'swapping' the heloc for savings account ... meaning take the retirement moneys and instead of putting them in MM or MINT for monthly cashflow disbursement, hit the heloc and then draw from it for monthly cashflow.
I know it is all on-paper transactions (with a mental block component), but I am trying to think of any real, not imaginary, downsides, and thought I would ask here for thoughts.

Comments

  • Derf
    Why not do both, take some for cash flow (+ tighten spending ) & pay off heloc in two or three years. Roof will probably last another two years or more. Wouldn't it be a pain in the butt to to keep track of your monthly draw downs. I will admit I know zero on how heloc work & options available.
    Derf
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