Reply to s/o What kind of car(s) do you drive and do you lease, finance or pay cash?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]2015 Chrysler Town & Country, bought used & still owe $26k on it.

2014 Chevy Malibu, bought new & [b]paid off the last $12k through a 401k loan[/b].  [/quote]

This is absolutely insane.  As in, orders of magnitude more insane than leasing cars for $45k a year - that guy presumably can afford it.  [/quote]

How so?

1) I'm paying my own retirement fund (and not 100% of my intake goes into stocks. I split it between company stock, regular stock, a self-managed brokerage account laid out in high-yield stocks, and the safe value fund) instead of (random bank here.) 
2) Yes, I'm taxed on that money, but I'm also taxed on the money I'm paying to (random bank here.) I've also improved my immediate cash flow. 
3) Most assumptions of "ZOMG you'll lose out of all teh gainz from the market" seem to think the stock market only goes up. Well, as 2000-03 (I was 24-27 then) and 2008-11 (corresponds with my oldest kid's being 1-4) showed up it doesn't always happen that way. So a 401k loan as an appropriate part of a balanced portfolio is insane ... how? 
4) The real risk is that I'll be screwed if I am (a) laid off and (b) don't find another job in the appropriate timeframe to pay off the loan. 
5) But then, the sum is under 5% of my own 401k which is one part of my family's total assets. [/quote]

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