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401k withdrawals
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<blockquote data-quote="UpstateNYUPSer(Ret)" data-source="post: 547234" data-attributes="member: 12570"><p>You used the 401k loan option perfectly. You borrowed just what you needed and kept the repayment term short. You are right in that you probably made more money in repaid interest than you would have made in performance. However, the one point that you left out was the compounding that you would have received had you not taken out the loan but $5K borrowed for a year is not going to make that much difference.</p><p> </p><p>The problem with 401k loans is when you borrow more than you need or extend the repayment time. This is not as much of a concern in a down economy but becomes more so when the economy is booming.</p></blockquote><p></p>
[QUOTE="UpstateNYUPSer(Ret), post: 547234, member: 12570"] You used the 401k loan option perfectly. You borrowed just what you needed and kept the repayment term short. You are right in that you probably made more money in repaid interest than you would have made in performance. However, the one point that you left out was the compounding that you would have received had you not taken out the loan but $5K borrowed for a year is not going to make that much difference. The problem with 401k loans is when you borrow more than you need or extend the repayment time. This is not as much of a concern in a down economy but becomes more so when the economy is booming. [/QUOTE]
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