401K loans, if you pay them back, are very useful

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Aug 4, 2022
7:44:31pm

HiLife Truly Addicted User

401K loans, if you pay them back, are very useful

For my company's plan, the 5.75% interest that you pay goes back into the 401K, so you are basically paying interest to yourself. You can borrow up to 1/2 the value of your 401K in my company's plan, and the repayment comes directly out of my paycheck.

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HiLife

Previous username: Peggy Fan
Bio page: HiLife
Joined: Aug 1, 2008
Last login: Jun 9, 2024
Total posts: 16,350 (2,129 FO)

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Messages

Author

Time

10 Money Traps To Avoid

brazilcoug

8/4/22 6:32pm

Marriage...kids...

EEcougar

8/4/22 6:36pm

I've done a 401k loan, but it was paid back 60 days later. Ooh yeah and those evil credit cards. I got a couple. Man

DJROSS

8/4/22 6:38pm

RE: I've done a 401k loan, but it was paid back 60 days later. Ooh yeah and

brazilcoug

8/4/22 6:42pm

I have a buddy who swears by his car leases. He says they're great because he

8/4/22 6:38pm

If there was a reasonable drive it into the ground leasing option I might bite, but for someone who racks up serious

DJROSS

8/4/22 6:42pm

If you own your own business, leases with lowest reserve possible can be great.

Mtbcoug

8/4/22 6:50pm

Hmmm. Never considered that. I'll look into it.

DJROSS

8/4/22 7:27pm

“I have a buddy…” 😂🤣😂

brazilcoug

8/4/22 6:43pm

Okay, you busted me.

8/4/22 6:47pm

RE: 10 Money Traps To Avoid

8/4/22 6:38pm

BOAT — Break Out Another Thousand

8/4/22 6:39pm

Best family investment I ever did. But ya, it’s expensive.

FromCAtoUT

8/5/22 12:20am

I know a CPA who got financially destroyed by an ARM. Avoid at all cost.

8/4/22 6:39pm

ARMs can be better products if you know you won’t be in place for very long.

Iman23

8/4/22 6:44pm

You get killed when something unexpected happens.

Cougforgood

8/4/22 8:08pm

Agreed. That's a no go. I don't care how desperate someone is to "own" a house.

DJROSS

8/4/22 6:45pm

Several of those can make a ton of sense in certain circumstances.

garyfan

8/4/22 6:39pm

RE: Several of those can make a ton of sense in certain circumstances.

brazilcoug

8/4/22 6:45pm

RE: Several of those can make a ton of sense in certain circumstances.

garyfan

8/4/22 6:50pm

I am utterly shocked that the guy who insists that he has life figured out

crazY

8/4/22 7:53pm

I used a 401k loan for down payment on house. I got back 300k when we sold 7 yrs

ordinary tri guy

8/4/22 6:40pm

RE: I used a 401k loan for down payment on house. I got back 300k when we sold 7

brazilcoug

8/4/22 6:46pm

Same I borrowed from my 401K 3 years ago to increase my down to avoid pmi.

Utefaninenemyland

8/4/22 7:31pm

And if real estate had gone down while your 401(k) was going up, you would have

8/4/22 7:46pm

I still would have avoided pmi. Paid it back within 6 months. Worth it either

Utefaninenemyland

8/4/22 7:49pm

Same here. I cut out the PMI charges and paid myself back. I'd do a 401k loan

Forzaitalia

8/4/22 7:09pm

401K loans, if you pay them back, are very useful

HiLife

8/4/22 7:44pm

Yep same way for me. It was a great option.

ordinary tri guy

8/4/22 8:06pm

The only one I've done is credit cards. I just have no-fee cards, and always

8/4/22 6:42pm

Yep we do credit cards too under the same philosophy. There is the

AFewThoughts

8/4/22 6:55pm

Ahhh come on.. You can't just have one...

DJROSS

8/4/22 7:32pm

I have a few cards I pay hundreds in fees a year. Its

SouthernBlueBlood

8/4/22 7:44pm

Agreed my Amex BONVOY is a net gain every year. $95 fee but the free night is

Utefaninenemyland

8/4/22 7:52pm

I have sapphire, bonvoy, and Citi Costco- it’s all in about 800 a year

SouthernBlueBlood

8/4/22 8:04pm

I use my Delta Amex for everything but Costco and gas. Delta One next summer

Utefaninenemyland

8/4/22 8:41pm

For me, the Costco credit card works the best. I buy a lot of gas (4% back)

8/4/22 7:58pm

Credit cards are fine

Princepete

8/4/22 6:43pm

Dave Ramsey is great for people that have no discipline and need bright line

Ozymandias

8/4/22 6:50pm

And "baby" steps. Because, you know, a "regular" step can be daunting.

8/4/22 6:56pm

The argument is so…

brazilcoug

8/4/22 7:02pm

Okay dude. Yawn all you want. I have never paid a cent in credit card interest

Ozymandias

8/4/22 7:09pm

Laugh all you want. Glad I didn’t follow his advice.

Ozymandias

8/4/22 7:20pm

Dave Ramsey didn't get rich on the expense side of the equation. He got rich on

Dryfire

8/4/22 7:38pm

Dave Ramsey: Don't use credit cards...now pay me...

WJCougar

8/4/22 7:02pm

And buy all these overpriced goods and services I am marketing to you while I

Ozymandias

8/4/22 7:03pm

… Said every financial advisor ever. Dave doesn’t ask for much and his services

brazilcoug

8/4/22 7:05pm

Do you send him a check in the mail?

garyfan

8/4/22 7:08pm

My biggest gripe about Dave is that he has a debt-free scream hourly on his show

8/4/22 7:10pm

My goodness. Of all the things to complain about.

brazilcoug

8/4/22 7:19pm

I enjoy his show otherwise. When the debt-free scream segment starts, I change

8/4/22 7:24pm

Lol. Look into the money he receives for “recommendations” to ELPs and what it

Ozymandias

8/4/22 7:14pm

Wow. I’ll just 😃

brazilcoug

8/4/22 7:20pm

More like

Ozymandias

8/4/22 7:21pm

#11: paying your employees market rates

Mitty

8/4/22 7:13pm

The "market rate" is how much an employee is willing to work for. To argue

8/4/22 7:16pm

RE: The "market rate" is how much an employee is willing to work for. To argue

Ozymandias

8/4/22 7:19pm

Oops. My bad.

8/4/22 7:25pm

Really dumb to not take advantage of credit card rewards and pay them off.

Manauara

8/4/22 9:16pm

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