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BlueColoredTrucks

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On my latest 401k statement it said that starting feb 17th they will increase the maximum number of loans from 1 to 3. This is not the first time, i believe 2 or 3 years ago it was such.

My question for anyone who knows or who's taken numerous loans before....

My available loan amount shows XXX, but i have a current loan on which i owe YYY.

come feb 17th, which amount will be available for me to burrow:

-the full XXX "available loan amount" (45% of vested balance)

or

-XXX minus YYY
meaning my available loan amount minus what i still owe, basically [the difference]


im in need of a lump some of money, and i know that burrowing from one's 401k or retirement account is generally not a good idea, but on the bright side im only 25 years old and i've got a lot of time to catch up. I'm also not going to stop contributing. anyway, no need to justify myself here, just need some quick answers. Thanks!
 
YellowColoredTrucks said:
On my latest 401k statement it said that starting feb 17th they will increase the maximum number of loans from 1 to 3. This is not the first time, i believe 2 or 3 years ago it was such.

My question for anyone who knows or who's taken numerous loans before....

My available loan amount shows XXX, but i have a current loan on which i owe YYY.

come feb 17th, which amount will be available for me to burrow:

-the full XXX "available loan amount" (45% of vested balance)

or

-XXX minus YYY
meaning my available loan amount minus what i still owe, basically [the difference]


im in need of a lump some of money, and i know that burrowing from one's 401k or retirement account is generally not a good idea, but on the bright side im only 25 years old and i've got a lot of time to catch up. I'm also not going to stop contributing. anyway, no need to justify myself here, just need some quick answers. Thanks!
Click to expand...

Thanx Con-way I dont want to take another loan right now but its nice to have the opportunity to take 1 in an emergency...:clap:
 
At one time, you could take up to 4 loans. It's a good tool to use in an emergency, but once you start taking loans, it's hard to get away from always having an "emergency". It's like that cycle you get into with the evil credit card companies..
 
well if yall must know, im taking this loan to pay off ALL my credit cards so will be debt free except for my car. I'm bracing myself for the worst since we dont know where this economy is headed, plus it doesnt hurt me.

example: if i take out a loan and pay off my credit cards and i got layed off/fired/quit, the proceeds would simply be treated as income. I usually get a tax return at the end of every year so this wouldnt hurt me much, also the fact that i probably wont be working the rest of the year if i were to lose my job. (bad economy)

if i dont take the loan and i get layed off/fired/quit i will not be able to take a loan, and i will have these monthly bills pilling up that all my vacation pay and unemployment (if any, i heard california is having a hard time paying) cant stand up to.

i'm just being pro-active as opposed to reacting when the situation comes to me. I'm preparing for the worst, but if the worst doesnt happen, what do i end up with but some paid of debt, and ease of mind?
 
YellowColoredTrucks said:
well if yall must know, im taking this loan to pay off ALL my credit cards so will be debt free except for my car. I'm bracing myself for the worst since we dont know where this economy is headed, plus it doesnt hurt me.

example: if i take out a loan and pay off my credit cards and i got layed off/fired/quit, the proceeds would simply be treated as income. I usually get a tax return at the end of every year so this wouldnt hurt me much, also the fact that i probably wont be working the rest of the year if i were to lose my job. (bad economy)

if i dont take the loan and i get layed off/fired/quit i will not be able to take a loan, and i will have these monthly bills pilling up that all my vacation pay and unemployment (if any, i heard california is having a hard time paying) cant stand up to.

i'm just being pro-active as opposed to reacting when the situation comes to me. I'm preparing for the worst, but if the worst doesnt happen, what do i end up with but some paid of debt, and ease of mind?
Click to expand...
Better ditch the credit cards when you pay them off. You just might use them again.
 
beerfd said:
Better ditch the credit cards when you pay them off. You just might use them again.
Click to expand...

ive already made that mistake once before, ended up with a 40 inch lcd (the shiznit at that time, i hear now they have 65) ps3, sound system, brand new car so replace new car, trip to vegas with wifey, new sony vaio, eating out every day etc etc etc....

but that was when the economy was booming and i was being FORCED to work 70 hours a week.

now it's a different story, i worry about getting layed off and not being able to find another job, and i have to "stick around" or find extra work to get 40-50 hours.
 
cash is king. keep making credit payments it will help your rating. if everthing goes to sh*t you still have your cards and available cash.
 
Stimulus

doppler said:
cash is king. keep making credit payments it will help your rating. if everthing goes to sh*t you still have your cards and available cash.
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I'm going to take a loan and buy myself a new cycle. You only live once. This will be my way of being patriotic by contributing to the economy. If We go under, Hopefully I will get a bailout. Though I'm not "too big to fail" maybe I can at least have my debts forgiven. Hey wait a minute??? It's my money right? I just haven't paid taxes on it yet? so, if logic serves me correctly (that would be "Congressman logic") I can just go on my happy way and be exempt from penalties since I did my part as a good citizen.
Someone throw a bucket of common sense on me, I'm beginning to fade...........I'm on fire
:flame:
 
Just remember..........if you lose your job, for whatever reason, layoff, quit, retire, terminated.....whatever. You then have 60 days to repay the 401k loan, in full. If you don't, the I.R.S., views the 401k loan the same as an "early withdrawal" from your account and the taxes, AND....10% penalty is due immediately. So, in essence, if you take out the 401k loan, and leave the company, you will owe approx. 40% of the amount borrowed to the IRS, if you do not repay the entire outstanding balance of the loan within 60 days of your separation from the company....

Just so you know.

irs
 
If you do a loan, don't lower your contribution amount. The loan will be repaid from your pay, at least it is here and I figure the amount into my monthly budget then I payback the highest and quickest amount possible without touching my savings or putting myself in jeopardy.
 

Just visiting here.
But wanted to add something that was not covered above.
One thing to think about before taking that 401K loan is how much of your money in your 401K is invested in the stock market and what percentage is in fixed income funds.??
You could probably borrow against the amount in fixed income funds, because you probably do not have a capital loss.
But for example if you had say 100,000 dollars in stock mutual funds a year ago, that are only worth 60,000 dollars today, you are taking a 40,000 dollar hit up front to get the 401K loan (since you have to sell stuff for the amount you want to borrow) and therefore selling out at close to the bottom of the market. You pay back that loan for the next 5 years,(and they pay you say 6%)
But you lose the chance of recovering that 40,000 dollar loss that you are showing on paper right now.
It is a tough call, but the cheapest alternative is to try to pay off your credit cards with your after tax money that you get from your check. Even getting a second job on the weekends could help.
Also you could lower your future 401K contributions to say 6% in order to have more take home to pay off debts.
Just something else to think about.

:popcorn:
 
River17 said:

Just visiting here.
But wanted to add something that was not covered above.
One thing to think about before taking that 401K loan is how much of your money in your 401K is invested in the stock market and what percentage is in fixed income funds.??
You could probably borrow against the amount in fixed income funds, because you probably do not have a capital loss.
But for example if you had say 100,000 dollars in stock mutual funds a year ago, that are only worth 60,000 dollars today, you are taking a 40,000 dollar hit up front to get the 401K loan (since you have to sell stuff for the amount you want to borrow) and therefore selling out at close to the bottom of the market. You pay back that loan for the next 5 years,(and they pay you say 6%)
But you lose the chance of recovering that 40,000 dollar loss that you are showing on paper right now.
It is a tough call, but the cheapest alternative is to try to pay off your credit cards with your after tax money that you get from your check. Even getting a second job on the weekends could help.
Also you could lower your future 401K contributions to say 6% in order to have more take home to pay off debts.
Just something else to think about.

:popcorn:
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it is no where near the scale you guys are thinking about and i have nowhere near the credit card debt to need that much money

im only burrowing 2 or 3 grand to pay off ALL my credit cards

i think i am 25% stocks right now and 40% retirement date funds and the rest is small percentages of all the other stuff

i did take a hit, but it wasnt anything huge....

thanks for the good tips guys, i would serve others well to know those facts if they plan to take loans as well.
 
Driving jobs.....

YellowColoredTrucks said:
well if yall must know, im taking this loan to pay off ALL my credit cards so will be debt free except for my car. I'm bracing myself for the worst since we dont know where this economy is headed, plus it doesnt hurt me.

example: if i take out a loan and pay off my credit cards and i got layed off/fired/quit, the proceeds would simply be treated as income. I usually get a tax return at the end of every year so this wouldnt hurt me much, also the fact that i probably wont be working the rest of the year if i were to lose my job. (bad economy)

if i dont take the loan and i get layed off/fired/quit i will not be able to take a loan, and i will have these monthly bills pilling up that all my vacation pay and unemployment (if any, i heard california is having a hard time paying) cant stand up to.

i'm just being pro-active as opposed to reacting when the situation comes to me. I'm preparing for the worst, but if the worst doesnt happen, what do i end up with but some paid of debt, and ease of mind?
Click to expand...

As I look at all the different jobs sites looking for something to do with my time one thing that really stands out is the large number of jobs out there for CDL drivers.

I don't think many of you guys have much to worry about when/if you should need another driving job.

Hopefully it won't come to that for anymore of you at Con-Way.

BH
 
bhenning said:
As I look at all the different jobs sites looking for something to do with my time one thing that really stands out is the large number of jobs out there for CDL drivers.

I don't think many of you guys have much to worry about when/if you should need another driving job.

Hopefully it won't come to that for anymore of you at Con-Way.

BH
Click to expand...

driving jobs are a dime a dozen .. a good driving job is hard to find .. LTL I felt was stable at one time ...
 
wonderring99 said:
driving jobs are a dime a dozen .. a good driving job is hard to find .. LTL I felt was stable at one time ...
Click to expand...

I think it will be again, very soon.

The prevailing wages and tonnage may decrease overall but the market will settle out quickly. Just a hunch with nothing solid to base it on, but nonetheless, it's my hunch.

I really am optimistic.








Disclaimer:
My hunches are not to be used as legal tender.
However, you can have fun taking one of my hunches
into your local bank manager for his amusement.​
 
:bowdown:I probably wouldn't touch the 401k. If you are trying to stay out of financial trouble by borrowing against it,you could inadvertenly set yourself up for big time problems. Meaning ,it would be hard to pay something back in 60 days with no job. To me it is taboo. Start by paying off one card at a time,highest amount to lowest amount. The other cards just pay minimum. Kill one at a time and you start having more money to throw at the other cards. What do you have to lose? If you lose job,you can at least work something out with th banks. IRS-no way,like the commercial says,"It's my money and I want it now!" Just trying to help. Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.
 
Force1 said:
:bowdown:I probably wouldn't touch the 401k. If you are trying to stay out of financial trouble by borrowing against it,you could inadvertenly set yourself up for big time problems. Meaning ,it would be hard to pay something back in 60 days with no job. To me it is taboo. Start by paying off one card at a time,highest amount to lowest amount. The other cards just pay minimum. Kill one at a time and you start having more money to throw at the other cards. What do you have to lose? If you lose job,you can at least work something out with th banks. IRS-no way,like the commercial says,"It's my money and I want it now!" Just trying to help. Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.
Click to expand...

Dave recomends paying off the cards smallest to largest. He calls it the "Debt Snowball".
 
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