Reply to Dialing back 401k until both kids are in PK3

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[quote=Anonymous]OP here.

We're 37. We have about 500k between the two of us in our 401Ks. We actually took our max 401k loan (100k between our two accounts) as a bridge loan to buy the new property, so that we can buy without having to sell first.

We need to do about 125k in renovations on the new place. We will clear between 85-130k in profit on the sale of our current place after we pay back all the loans. If we wind up selling on the low end of our expected range, we'll be coming up short to do all the needed work, so that's why we were looking at 1) keeping one of the 401k loans or 2) taking the intra-family loan.

When I do the projections of paying back the 401k loan over 5 years, and basically halving my 401k contributions for 2 years so that I can manage the loan from a cashflow perspective, it projects out to about a 30K or so reduction in future value at age 62.

So, the trade is really: get 50k now to do work that makes the house livable & increases its value ...at the expense of 30k less in 25 years. I think we'll probably take that gamble (and do some catch up contributions later in life to make up some of it, if all goes well).[/quote]

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