If you took money out of your TSP for a downpayment on a house....

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't you people understand continously compounded interest and what you lost? I think borrowing from a TSP is incredibly stupid

Not stupid if you get 400 percent rate of return on the house you buy like I did. I didn't borrow but took out ,$10k from my 401k to buy my house in 2003. When we sell we'll have more than $500k gain.

+1

[Anonymous]

Anonymous wrote:Let's say you took 50k out for a down payment at 30.

50k compounded at 7% until age 65 is $533,829. That's the real cost of a 401k loan.

No. The vast majority of TSP borrowers pay it back in a short time, including paying ourselves back the lost interest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Let's say you took 50k out for a down payment at 30.

50k compounded at 7% until age 65 is $533,829. That's the real cost of a 401k loan.

But that 50k is paid off in just a few years. It’s not taken out permanently.

Most people are repaying their 401k loan in lieu of current year contributions, so it's still likely a net -50k gap in the account.

No, not us. We have made the decision to continue making out our retirement contributions (something like $18.5k per spouse) this year plus paying back the TSP. We also had a TSP loan in mind when we maxed out our contributions in the years prior to taking the loan for a home purchase.

[Anonymous]

Anonymous wrote:Did it for the house we currently live in. No regrets. House has tripled in value in 8 yrs. Live in Bloomingdale. TSP paid off.

Highly doubtful.