[buckaroo]

Under the current economic climate, and huge losses in my 401, I am looking for other avenues to keep from losing more money. I owe 50k on my house. I am looking forward to retireing once the house is paid off, which would be 4 yrs. Under my current plan. But, am wondering about pulling 401k money out and paying it off now. My payment is 661. A month. I put 200 extra a month against the principle and 4000. A year on top of the 200. A month, once a year against the principle. Now, with the bleeding in the 401k, I am wondering if I would be OK to pull money out, pay off house, then continue with the amount of the house payment and the extra for the year, just buying cd's for the next four yrs. And try to break even and have the house paid off, or is it worth it?

[ScottGem]

NO! First, you are giving up a tax deduction for tax liability. Second, you would be getting out of your 401K at its low point, right now your losses are on paper, not real. You cash out and make the losses real.

By cashing you, you lock in your losses, plus you lose more in penalties and additional tax liabilty. There is no way your plan makes sense.