Toggle navigation
Toggle navigation
Home
DCUM Forums
Nanny Forums
Events
About DCUM
Advertising
Search
Recent Topics
Hottest Topics
FAQs and Guidelines
Privacy Policy
Your current identity is: Anonymous
Login
Preview
Subject:
Forum Index
»
Money and Finances
Reply to "Should we pay back our 401k loan early? "
Subject:
Emoticons
More smilies
Text Color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Violet
White
Black
Font:
Very Small
Small
Normal
Big
Giant
Close Marks
[quote=Anonymous][quote=Anonymous]We took out a $50,000 15-year 401k loan to buy our house nearly four years ago and have about $40,000 remaining on it. We are in the midst of selling off a rental property and will be getting about that much out of the sale. Wondering if we should repay the loan or invest the money some other way, since we are paying the 4.25% interest to ourselves on the 401k loan. Anyone thought through the pros and cons of this? We have no other debts, other than our mortgage. [/quote] Just wanted to point out that in repaying the loan, it is basically the same thing as investing it - just within your 401K. When you put the money back in there, it starts earning for you again, instead of you paying yourself the interest. So either way if you invest the money or pay off the loan - you are getting market gains. But if you pay off the 401K loan, you are then free to change jobs as needed without risk of defaulting and paying a penalty.[/quote]
Options
Disable HTML in this message
Disable BB Code in this message
Disable smilies in this message
Review message
Search
Recent Topics
Hottest Topics
