5 ms·

401k loans are not a great idea in general. Are you saying that only "real" people take out 401k and other creative types of loans and only not "real" people (m

• zelon88 7y ago
  No, I'm saying it's apples and oranges for a CEO and financial planner to group employees together who make 10% as much just to beam about how cheap financing is and how anyone with half a mind is going to keep their mortgage because the market for money is so cheap blah blah blah. We make 10% of this guy's salary. Comparing his apple to our orange is going to disenfranchise people.
  • isoskeles 7y ago
    It's not apples and oranges, the price of money has been at historic lows for a while now. You might even have a better credit score than him and qualify for a lower rate (although not as much principal). Also, even if your CEO makes 10x as much as you, that still might not be so bad and not qualify you to talk like you're being victimized by someone conceptually talking about how interest rates are low. Supposing he makes $2M per year, sounds like you'd be doing fine.
• joncrane 7y ago
  Can't you do it once for home purchase? You basically borrow from yourself in order to buy a house? Instead of paying a mortgage, you slowly redeposit the money back into your 401(k).
  • isoskeles 7y ago
    At most for $50k, so it would need to be a very cheap house. You can't borrow more than $50k or half of your 401k assets, whichever is lower. You could take out for your down payment to avoid PMI, although I don't think that's what was being discussed in the example. (It wasn't worded so clearly to me though.)