FedEx Freight | Can’t get a loan in the new 401(k) plan ??

I borrowed $100,000.00 when we moved into a nicer home. We paid it off in 7 years. At the same time, we funded our 401K's, but at a lesser rate. I had advice to not pay off my home because I would make better money in the market. I sure slept better when my house was paid for!
 
There is a lot of variables that can sway your decision. Obviously we are not financial experts, some have made mistakes and telling you from experience, some are very good with there personal finances and have made good decisions and do there research before making decisions. I suggest you find a good 401 k calculator on the web ( money chimp has a good one) and play with the numbers. Then get a loan amortization calculator and do the same.
One thing to consider that in my opinion is the reason not to take a loan on 401k, is the market goes up and down but historically has performed well above what you can borrow money for, and a regular loan would have a locked in rate,unless you have poor credit. If you borrow on 401 k and miss just a one or two years of great growth it could be worth several thousand on down the road. Example if you borrowed 20,000 and paid it back in 10 years and market had a 15% year then a 20% year, you would lose 7,000 in money that could grow for duration of your investment period. Very few if any financial guys or banks will advise you to take loan on 401k, unless you have poor credit.

That 7,000 would double at 6% in 12 years.
 
There is a lot of variables that can sway your decision. Obviously we are not financial experts, some have made mistakes and telling you from experience, some are very good with there personal finances and have made good decisions and do there research before making decisions. I suggest you find a good 401 k calculator on the web ( money chimp has a good one) and play with the numbers. Then get a loan amortization calculator and do the same.
One thing to consider that in my opinion is the reason not to take a loan on 401k, is the market goes up and down but historically has performed well above what you can borrow money for, and a regular loan would have a locked in rate,unless you have poor credit. If you borrow on 401 k and miss just a one or two years of great growth it could be worth several thousand on down the road. Example if you borrowed 20,000 and paid it back in 10 years and market had a 15% year then a 20% year, you would lose 7,000 in money that could grow for duration of your investment period. Very few if any financial guys or banks will advise you to take loan on 401k, unless you have poor credit.

That 7,000 would double at 6% in 12 years.
:1036316054: :1036316054: :1036316054:
 
There is a lot of variables that can sway your decision. Obviously we are not financial experts, some have made mistakes and telling you from experience, some are very good with there personal finances and have made good decisions and do there research before making decisions. I suggest you find a good 401 k calculator on the web ( money chimp has a good one) and play with the numbers. Then get a loan amortization calculator and do the same.
One thing to consider that in my opinion is the reason not to take a loan on 401k, is the market goes up and down but historically has performed well above what you can borrow money for, and a regular loan would have a locked in rate,unless you have poor credit. If you borrow on 401 k and miss just a one or two years of great growth it could be worth several thousand on down the road. Example if you borrowed 20,000 and paid it back in 10 years and market had a 15% year then a 20% year, you would lose 7,000 in money that could grow for duration of your investment period. Very few if any financial guys or banks will advise you to take loan on 401k, unless you have poor credit.

That 7,000 would double at 6% in 12 years.
very good post
 
There is a lot of variables that can sway your decision. Obviously we are not financial experts, some have made mistakes and telling you from experience, some are very good with there personal finances and have made good decisions and do there research before making decisions. I suggest you find a good 401 k calculator on the web ( money chimp has a good one) and play with the numbers. Then get a loan amortization calculator and do the same.
One thing to consider that in my opinion is the reason not to take a loan on 401k, is the market goes up and down but historically has performed well above what you can borrow money for, and a regular loan would have a locked in rate,unless you have poor credit. If you borrow on 401 k and miss just a one or two years of great growth it could be worth several thousand on down the road. Example if you borrowed 20,000 and paid it back in 10 years and market had a 15% year then a 20% year, you would lose 7,000 in money that could grow for duration of your investment period. Very few if any financial guys or banks will advise you to take loan on 401k, unless you have poor credit.

That 7,000 would double at 6% in 12 years.
Well said!
 
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