42 and just recently my job and income have huge risks to both....currently I work for a W2 small local brokerage firm that has had troubles in the last few years and will be rolled up into a larger regional/national form where everyone is 1099'd
Basically what I've done is pay off my mortgage with premature IRA distribution and cram all the interest I would have paid over the next 8 years into 1 year of penalty and interest before April 15th of 2013.
My thinking is that by taking that 1400/mo payment off the table it will give me much more ability to grow the business without tons more stress and risk to being able to cover my monthly nut. I understand that I've taken 50k out of a tax deferred account and moved 13.5k of penalties and interest into one year but just by setting aside 8 months of that mortgage payment it will be easily paid off and I can go back to normalcy without that debt hanging over my head. I also believe that a correction is coming in the equity markets and not being the greatest market timer in the world getting out 2 weeks ago in the long run will probably have saved me 20k on the valuation that I got out at.
Does my thought process make sense or do you think it was a major $#@! up? Opinions?