Moose and Rocco charge more and their late payment penalties might be a deal breaker.
Those guys are out of the loop for me but you do you.
Those guys are out of the loop for me but you do you.
OT - Borrowing from 401 K
- Thread starter Leeshouldveflanked
- Start date
You only owe $30,000 and you are going to work 6 to 10 more years. You should easily have it paid off by the time you retire. Also, if for some reason you lose your job, the loan becomes due immediately. If it isn't repaid, the unpaid balance is income to you and subject to the 10% penalty if you are under age 59 1/2. And you will be repaying with after tax dollars. I would advise against it. Borrowing from a 401K only makes sense when the only other option is a loan shark.
There are lots of scenarios that could happen that could make half a million in a 401k make your life easier now other than loan sharks. Of course there could be better options but to make blanket statement like that is wrong. How much is that interest rate on His current loan? Where does he have his 401k invested? Job security? Lots of stuff you don’t know. If the market turns down he could save money. I do agree it should not be the first option but loan sharks and first option are a long way apart.