No. of Recommendations: 0
I know, I know. It is universally accepted that taking a 401k is a bad idea. But I am still seeking input from the board. My wife & I have aggressively saved for retirement and now have $1.5 M in our retirement accounts. We are 50 and would likely consider ourselves financially independent when accounts hit $3 M ($120,000/year using 4% withdrawal rate), in 8-10 years by mirroring Pro recs.

One "issue" in our financial life is the home equity loan we have that has a balance of just under $30k. We have ~$300k equity in the house (8 yrs left on a 15 year mortgage). Plus, my wonderful wife would like to do a $20k basement/backyard remodel.

One option would be to stop or drastically cut back on our 401k contributions for 12-18 months and use ALL of those contribution to pay off the home equity loan and perhaps pay for remodels in a staged approach.

Another option would be to take out the 401k loan of $30-35k to pay off equity line, and do one of the remodeling projects.

I feel very stable in my job (professor) as does my wife (physician) so the concern of having to paying off loan earlier than expected is minimal, but still a possibility.

What are your thoughts of those two options and what better options am I not thinking about. Thanks in advance for your input. I am typically a lurker on these boards, but this is a time that I would love some input from people smarter than me!

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