If I take a loan from my 401k I may forego any returns. I would be paying myself prime plus 1% back into my account, which is still a lower interest rate than some of my student loans. It is a company 401k for which I cannot roll funds out unless I leave the company. If I do leave the company for any reason I will be forced to either pay back the remaining balance on the loan, or pay the tax penalty for an early withdrawal on the remaining amount. My plan is to only take a small loan for a period of 12 months or so, then repeat the process once the first loan is paid off. The size of the loan is limited by my free monthly cash flow, and would not be larger than my rainy day fund in my savings account.
Any advice is very much appreciated.
Submitted May 03, 2017 at 01:00PM by hkeyplay16 http://ift.tt/2p9iSy1
