In this video I go over some of the objections about retirement plan loans.
These are the big ones:
* Money you borrow will be out of the market and thus not growing
* Why pay off a mortgage or equity line debt when that interest is tax deductible?
* What if I leave my employer before the loan is paid off?
* I’m paying the loan back with after tax money, only to have it taxed later when I take it out.
Retirement Plan Loans
Love to hear your comments as these are 4 main reasons I hear NOT to borrow against your 401k.
But while they all have SOME validiity, not to the extend that it seems EVERYONE is always saying “DON”T EVER BORROW AGAINST YOUR 401K,! ONLY FOOLS DO THAT!”
Here’s another post on this topic.