Should i pay down to open up $$

Here's the internal debate ive been having .

My truck payment is about $630 month. I pay Bi weekly $315. I've got about $13,000 left to pay. I am debating is it worth pulling from my RRSP (retirement funds) I think the U.S equivalent is a 401k to pay this thing off and put the $630 back in my pocket. I could dedicate at least 50% of that monthly back into a TFSA ( Tax Free Savings account) and use the rest to help with the *&^*((!! inflation . I know that im losing that money from my retirement savings and usually thats a sticking point..but considering the direction the markets are taking my retirement savings are getting their ass kicked already and it looks like its probably going to get worse so my head is saying its worth making the withdrawl but my other side is saying its not

I will have to pay 20% withholding tax on the withdrawal and could get stung a bit extra on Income taxes year end but im debating whether paying down is a worthy move.

Anyone got any questions or opinions they can offer if they were in the same boat?

For info on what a TFSA is https://www.td.com/ca/en/personal-banking/personal-investing/learn/what-is-tax-free-savings-account/

 

In the US you get penalized pretty hard for hitting the 401k early. Your only like 2 years out from ending the loan anyway, unless your in some kind of financial trouble I would leave the retirement funds till you retire.

 

I agree with @saint277 on this. Unless you are in a serious emergency, (like having your house foreclosed on) I'd leave what you have in the accounts now alone until you are actually retired. If you want to get out from under the loan quicker, I'd stop what you are contributing to your retirement/savings accounts for the short term and put that towards the loan principle. Once you have the loan paid off, you can redouble your efforts on the retirement/savings accounts.

 

Kind of old, but what is your interest rate? Probably pretty good, meaning you aren't losing a ton of money in interest. Everyone is taking the market hit in our 401k, you own shares so the more shares you own the more money you'll have when the economy makes a recovery.