Taking money out of retirement funds to purchase cards

[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???

[autograf]

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???

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.............

[Yoda]

Tom, did the kid(s) turn out to be a good investment? And perhaps that is them behind you in the photo. Philippine American maybe?

[x2drich2000]

One risk to consider with a 401k loan is what happens if you lose your job or want to move on to a different job. Many plans will require you to either pay the loan back in full very quickly or will consider the loan a disbursement subject to the tax and penalties discussed previously in this thread.

[jingram058]

Just proves what I learned about this Pre-War forum. The regulars here are the "beautiful people". They don't have to worry about such things as "money" or "jobs" or "what will my wife and kids say if I buy a $25K baseball card"; they own the joint and $25K is mere pocket change for picking up whimsical baseball card trinkets. Way beyond what we used to call "suits" back in the day. They don't need to worry about such things as retirement, as they already live the beautiful life. If that is not the case, how then can you explain the constant, endless parade of big, big dollar cards with no mention of any stress or anxiety in picking them up?

[ullmandds]

Originally Posted by jingram058

Just proves what I learned about this Pre-War forum. The regulars here are the "beautiful people". They don't have to worry about such things as "money" or "jobs" or "what will my wife and kids say if I buy a $25K baseball card"; they own the joint and $25K is mere pocket change for picking up whimsical baseball card trinkets. Way beyond what we used to call "suits" back in the day. They don't need to worry about such things as retirement, as they already live the beautiful life. If that is not the case, how then can you explain the constant, endless parade of big, big dollar cards with no mention of any stress or anxiety in picking them up?

my life is a constant state of stress!!!!

[obcbobd]

Originally Posted by jingram058

Just proves what I learned about this Pre-War forum. The regulars here are the "beautiful people". They don't have to worry about such things as "money" or "jobs" or "what will my wife and kids say if I buy a $25K baseball card"; they own the joint and $25K is mere pocket change for picking up whimsical baseball card trinkets. Way beyond what we used to call "suits" back in the day. They don't need to worry about such things as retirement, as they already live the beautiful life. If that is not the case, how then can you explain the constant, endless parade of big, big dollar cards with no mention of any stress or anxiety in picking them up?

I'm not sure you can put people into buckets such as "beautiful people" or suites as easily as you might think. Everyone is different. There's they guy making $75K a year with a big mortgage who is buying a $20K card on credit. Then there's they guy making $200K a year, no mortgage who won't pay more than $500 for a card because he doesn't believe in spending that much on a piece of cardboard. And then there's everyone else who is probably in between.

I always figured anyone who had a big $10-20K card, back when that meant a Goudey Ruth or T206 Cobb, must be a multi millionaire. I was certainly wrong.

And as far as "beautiful people" - have you ever been to the National or a big show. We (and I certainly include myself) are far from "beautiful people" :-)

[raulus]

Originally Posted by jingram058

If that is not the case, how then can you explain the constant, endless parade of big, big dollar cards with no mention of any stress or anxiety in picking them up?

Gotta know your limits. And then have the courage to stick to them, no matter how sorely you are tempted to go crazy, throw caution to the wind, and just go for it.

Confession: I went crazy once. But only once. The #1 set registry set for my man Mays was coming online, with crazy rare stuff for sale. I could have bankrupted myself buying all of it. Instead, I focused on the pieces that I couldn’t find anywhere else, got many of them, and figured I would pick up the rest later. It still cost me an uncomfortably high amount, and I’ve never come close to spending that much in a single auction since. And as luck would have it, many of the items that I didn’t get at that auction have come up for sale in the years since, but I’ve had to pay double or triple to get them now. So I guess you could say that I’ve been using the other guys to finance my purchases from the original auction, but at a very high interest rate, which comes due when I finally buy the items off of them years later.

[raulus]

Originally Posted by raulus

Confession: I went crazy once. But only once. The #1 set registry set for my man Mays was coming online, with crazy rare stuff for sale. I could have bankrupted myself buying all of it. Instead, I focused on the pieces that I couldn’t find anywhere else, got many of them, and figured I would pick up the rest later. It still cost me an uncomfortably high amount, and I’ve never come close to spending that much in a single auction since.

What’s a confession without a picture of my biggest pickup from that auction?

[BobbyStrawberry]

Originally Posted by jingram058

Just proves what I learned about this Pre-War forum. The regulars here are the "beautiful people". They don't have to worry about such things as "money" or "jobs" or "what will my wife and kids say if I buy a $25K baseball card"; they own the joint and $25K is mere pocket change for picking up whimsical baseball card trinkets. Way beyond what we used to call "suits" back in the day. They don't need to worry about such things as retirement, as they already live the beautiful life. If that is not the case, how then can you explain the constant, endless parade of big, big dollar cards with no mention of any stress or anxiety in picking them up?

And remember to celebrate the latest absurd record-breaking prices, or you are a nothing but "a hater"!

[Republicaninmass]

Originally Posted by BobbyStrawberry

And remember to celebrate the latest absurd record-breaking prices, or you are a nothing but "a hater"!

Celebrate???? No way, you have to pump them higher! Saying it was a steal and people will kick themselves years from now

[G1911]

Originally Posted by jingram058

Just proves what I learned about this Pre-War forum. The regulars here are the "beautiful people". They don't have to worry about such things as "money" or "jobs" or "what will my wife and kids say if I buy a $25K baseball card"; they own the joint and $25K is mere pocket change for picking up whimsical baseball card trinkets. Way beyond what we used to call "suits" back in the day. They don't need to worry about such things as retirement, as they already live the beautiful life. If that is not the case, how then can you explain the constant, endless parade of big, big dollar cards with no mention of any stress or anxiety in picking them up?

Well apparently it’s because they empty their retirement accounts to buy cards

[Exhibitman]

it is a weird zeitgeist in this country right now, and the feelings expressed on this board in this thread reflect it. On the one hand, we (purportedly) celebrate unfettered capitalism and individual wealth building, but there is also a ton of vitriol for those who emerge at the top of that system and use their money to buy the best toys. Seems to me you can't hold both positions at the same time, or the cognitive dissonance is overwhelming. If you are a free-marketeer, it is not logical to be angry with the winners in that system. After all, the tenets of capitalism would indicate that those of us who cannot afford to buy $25K baseball cards are the losers and that those who run the table financially are deservedly enjoying the fruits of their labor. I'd ask those who are critical of the financial high flyers in the hobby to explain just what they think is the solution? Do we tax the wealthy and redistribute their money so that no one can buy a $25,000 baseball card? I'm curious to hear the answers, if you have any. Or are you just exercising the most precious of American rights, the right to complain?

And no, I am not conflicted in the slightest. If I was able to, I would wave my magic wand and tax the snot out of the rich to pay for social programs and infrastructure, but I can't, so I play the cards I am dealt, and that means working the system as best as I can for my own benefit rather than wasting my time being pissed at those who make more money than I do. Hate the game, not the players. I think I heard that somewhere...