fishndad42
Recycles dryer sheets
Most pundits say to never borrow from your 401k. However I am considering it, and here's the circumstances.
I am just shy of 59 YOA, plan to ER at 60. 340K in 401k, also will have a nice pension (or lump sum, but that's a different thread). The housing market in my primary home area finally got hot. I will be prepping it for sale early next year. Meanwhile up north where my retirement home is, the market is still soft. I am seriously considering buying a chunk of land for recreational purposes before prices there start back upward (one of the last things on my aquire before retire list).
I am thinking of borrowing 50k from my 401k for no longer than 9 months. My thinking is this. Market is a bit volitile, I think the correction could mean I'd be paying myself back at a better rate than I'll be making. I hear those that would say I'd be better off investing those payments , but I'm suggesting that land price increases next year could offset any gains in those 9 months. I would pay off the 401k loan with some of the proceeds with the primary house sale early to mid next year.
At the moment this is just rolling around in my head, I haven't gotten the calculator out yet. I'm curious what others think - is there a scenario where a short term loan from a 401k makes sense?
I am just shy of 59 YOA, plan to ER at 60. 340K in 401k, also will have a nice pension (or lump sum, but that's a different thread). The housing market in my primary home area finally got hot. I will be prepping it for sale early next year. Meanwhile up north where my retirement home is, the market is still soft. I am seriously considering buying a chunk of land for recreational purposes before prices there start back upward (one of the last things on my aquire before retire list).
I am thinking of borrowing 50k from my 401k for no longer than 9 months. My thinking is this. Market is a bit volitile, I think the correction could mean I'd be paying myself back at a better rate than I'll be making. I hear those that would say I'd be better off investing those payments , but I'm suggesting that land price increases next year could offset any gains in those 9 months. I would pay off the 401k loan with some of the proceeds with the primary house sale early to mid next year.
At the moment this is just rolling around in my head, I haven't gotten the calculator out yet. I'm curious what others think - is there a scenario where a short term loan from a 401k makes sense?