Quote:
Originally Posted by basesareempty
I am Old School and am in the market for the ups and downs but with the current down turn in the market and what appears to be an impending recession at best, I have often thought what if I took out a company sponsored 401k Loan where I pay the amount back through payroll deductions with 6% interest that also goes to my account. I then could use the loan to pay off a vehicle, credit cards, buy tangible assets( cards, gold or silver) or whatever? 6% return in the current market is not to bad considering I’ve lot about 22% in the last 18 months or so???
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We took about $30K from a 401k right before the HUGE downturn in 2008/2009 for an adoption. Then paid it back over a 5 year period with the 6-7-8% interest, so it worked out pretty well ultimately. The rest of the money in the 401k was growing strongly during that period but we didn't lose the base amount on the $30K since we'd pulled it out. Just a matter of timing. Not sure that it would be that easy to really PLAN it to turn out well.............