Reply to Using retirement money...ever a good idea?

Forum Index » Money and Finances

Reply to "Using retirement money...ever a good idea?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I am fairly conservative with money and I would consider the loan with some caveats.  First is how stable is the job of the person taking out the 401K loan?  I'm in IT and have gone through companies buying the company I work for, losing federal contract and basically having to go to the employer that won the contract or have no job, bankruptcy of a company, outsourcing of IT at another company and crazy boss at another company.  Now the last one was a choice to leave but in all the other cases any 401K loan would have been due within I think 6 months because I would no longer have been with the same employer ...even in those cases where I still had a job but different person signing the paycheck.   The other question is can you really afford the house in general , do you have enough for a house emergency, home maintenance, still have a life happens fund, as well as still being able to save for retirement and payback the loan?  Will you have any new childcare expenses, which can be a mortgage payment right there, that isn't currently factored into your budget?  Personally I would only consider it if I knew I had the ability to save the 10-20K pretty quickly but it was the timing of right house, right rates that may not be there in a year OR I had some expense I knew would be going away that would free up that money, like a kid going to public school next year and that would save me $1000/month when it happened.

Bottom line is if life is getting more expensive not less, and it would take a long time with what you are earning to save up another 10-20K, I think you are taking a big risk that the ball always bounces your way and think it makes more sense to find a less expensive house or look for ways to save money and cut expenses more.

[/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