I once found myself in a difficult position because I had put almost all of my savings into reducing my home loan. I lost my job suddenly along with about 1,100 others and the housing market in the small town collapsed. I only had about a 3 month emergency fund. Very good luck in finding another job quickly saved us from total financial disaster. Many of my coworkers were not so lucky.
The point of my ramble is to keep at least a year's living expenses in a safe, after tax account in case of disaster. I also can't get excited about paying of a 4.25% loan which I suspect will look like really cheap money in a few years. I would suggest you do pay off your 401k loan.
The point of my ramble is to keep at least a year's living expenses in a safe, after tax account in case of disaster. I also can't get excited about paying of a 4.25% loan which I suspect will look like really cheap money in a few years. I would suggest you do pay off your 401k loan.