<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

Should I pay off the balance of a loan with money from an investment account?

I am in my late 50's and inherited a substantial IRA, investment account, and large home. Instead of paying PA inheritance tax out of the investment account, my financial advisor had me take out a line of credit at a bank that was secured with the investment account while I sold the house. After estate expenses, I was able to pay off $330,000 of the loan and have a balance of $220,000. I asked my advisor to pay the balance from the investment account and he is dragging his feet. He wants me to pay it in smaller chunks while I pay some principal and all the interest due each month (approximately 4.3 percent variable). I want to pay the whole thing now. He is so hesitant about me touching this account. Why would I not want to pay the balance off now?

Banking, Debt, Estate Planning, Choosing an Advisor, IRAs
Answers
Sort By:
Most Helpful
last month

Sounds like you could benefit from a consultation with a fee-only financial planner.  If I had to guess- your financial advisor only gets paid on assets under management from your investment accounts. If you pull out money to pay off the home- his income goes down.

 

Just to be clear, this isn't to say there isn't any reason to not pay the house off. But, it sounds like your so-called advisor is not making his reasoning if any, clear to you. 

last month
last month
5 weeks ago
last month