I took a loan several years ago and it was before the market went down.

Mar 29, 2024
10:21:20pm

Bin01015 Playmaker

Also, the alternate was getting a loan and paying interest on that. Opportunity costs are really the comparison of what would happen in either scenario (loan interest vs. stock market impact).

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Bin01015

Bio page: Bin01015
Joined: Feb 4, 2016
Last login: Apr 28, 2024
Total posts: 1,511 (2 FO)

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Messages

Author

Time

401K loans and opportunity costs: A 401K loan may sound attractive with a good

Pick-Six Coug

Mar 29, 10:12pm

Best thing I ever did with my 401k is nothing

CBaass

Mar 29, 10:18pm

I took a loan several years ago and it was before the market went down.

Bin01015

Mar 29, 10:21pm

You have to take a wholistic view of your finances. No biggie if you are

VenturaCoug

Mar 29, 11:06pm

Right now 401K loans are running about 10%, so when someone says you aren’t

Acorn

Mar 30, 6:48am

You’re not earning a guaranteed 10%, you are paying yourself back +10%. That

Cougz19

Mar 30, 9:28am

You can pay interest to someone else or you can pay it to yourself.

Acorn

Mar 30, 1:02pm

I turned my $25k 401k withdrawal into a ~$275k unrealized home equity gain. Not too shabby though I say so myself.

CertainDeath

Mar 30, 9:15am

You also repay the loan with After Tax dollars, then get taxed again withdraw

SwanSong

Mar 30, 2:28pm

This sounds like the conversation I had with my wife the other day.

Bin01015

Mar 30, 3:27pm

True if not a Roth. That’s why I prefer using the 60-day rule if possible.

VenturaCoug

Mar 30, 3:55pm

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