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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 310986  
Subject: Re: Borrowing from your 401(k) Date: 8/20/2013 11:03 AM
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401Ks offer fixed income investments. You don't need to borrow against a 401K to hedge against a bear market.

The bear market in 2008/2009 hit fixed income markets, too. After the Lehman bankruptcy, there were fears that a lot of other companies were going to default on their debt, too.

I bought several fixed income investments below par in 2009 and have realized nice capital gains on several that have been called. The sellers of those investments could very well have been managers of investments available in 401(k)s, since some of the investments I bought appeared to occur when large blocks of a particular fixed income investment were being sold - possibly to meet redemption demands.

I actually borrowed from my 401(k) at that time, in order to help facilitate buying some of those investments, because they weren't available in my 401(k).

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