Originally Posted by Atoler
Originally Posted by Irishguy
Originally Posted by 2Dogs
Originally Posted by countryjwh
I’m 44. Not note whatsoever.
I’d pay it. Can you use the 401k as a loan ?

Interest on a 401k loan is about 2% over prime , so floats about 8-10 % . Granted he'd pay himself , but it's still double his 3.6 rate. In my mind not a good move. If he needed a small amount for a short time , a 401k loan could be an option. He'd also be missing gains on that 401k $ at possibly more than his payback rate.


401k's will only let you borrow for 5 years.

they are due in full if you have a career change.


True, but there instances where borrowing from your 401k is a smart move.

We borrowed $25k to buy our 10 acres of mountain view property and then turned around and borrowed another $25k to buy lumber and pay contractors to frame our house. Both of those were paid off in 5 years. We ended up spending $65k over 3 years building that place ourselves. Now it's worth over $400k. It also helped us to become debt free. There's no way that $50k would have earned $400k in that short of a period of time had it just been left in the 401k to grow.

"When I say ever thing I mean ever thing." - Frankie