Bob and Mary have been married for 25 years. They are both college professors. Mary (50 years of age) makes $65,000 yearly and Bob (60 years of age) makes $75,000 yearly. Their oldest daughter is getting married. Mary and Bob would like to either
1) take out a second mortgage on their home (they can get an interest rate of 7 %) or
2) withdraw funds from their IRAs or
3) sell their rental property.
The cost of the wedding is $35,000. The equity in their home is $150,000; they have $80,000 in IRAs between the two of them and the basis of the rental property is $20,000. The rental property may be sold for $120,000. Mary and Bob want to know how they should finance the wedding and if tax implications will be a factor.
Research memo format (1) facts, (2) issues, (3) authority list, (4) conclusion, and (5) analysis.