Lauterbach Financial Advisors
Financial Advisor - Hispanic Investors
Miguel Gomez currently serves as Financial Advisor for Hispanic Investors. In this position, he’s responsible for developing client relationships and keeping clients happy and aligned to their plans, while providing them advice using his knowledge of investment strategies, securities, and insurance.
In addition to being a Financial Advisor, Miguel is passionate about helping the general public take the mystery out of personal finance, and has been a weekly financial columnist for over two years at El Diario de El Paso and at MVS Noticias El Paso – Ciudad Juárez. He’s also been a speaker at various community events and is a frequent guest on radio, television and print publications discussing topics such as investing, marketing and immigration.
Miguel holds a marketing degree from the Monterrey Institute of Technology (Tecnologico de Monterrey) in Queretaro, Mexico. He became a CERTIFIED FINANCIAL PLANNER™ professional in 2014.
Before moving to El Paso in 2007, Miguel lived in Queretaro, where his family still lives. Miguel enjoys his spare time with his wife, their daughter and their three Scottish Terriers.
I tend to agree with your feelings about Whole Life. I have never seen a single case where the cash value is used effectively as a "retirement income" bucket. I have asked other advisors (one with 40+ years of experience) and they haven't seen one successfully done. So, don't feel guilty about cancelling it (yes, you'll lose the money you already paid, but you're cutting off your losses). Just make absolutely sure that you don't need the death benefit from that policy.
I commend you on saving for your retirement and having that discipline at such a young age, although I think that you could use the extra money (from the life insurance, for example) you have to pay-off your debt. Think of it this way; even if it's a low rate, your loan is acting as a bond with negative rates in your portfolio. Focus on paying it off, and then increase even further your savings (for retirement or otherwise).
Unfortunately, no. Funds in an IRA are intended for retirement, so if she withdraws them now, she'll have to pay income taxes and a 10% penalty. There may be some excemptions, though. Please visit this site for reference: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions
However, if her income is low enough (ie: if she does not have a job), then maybe the only tax she may end up paying is the 10% penalty. But it depends on her overall income for 2017.