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URL:  http://boards.fool.com/isnt-it-analogous-to-having-a-36-month-cd-paying-21850836.aspx

Subject:  Re: 401k Loan Date:  1/3/2005  7:54 PM
Author:  tmeri Number:  209493 of 757793

isn't it analogous to having a 36-month CD paying 4.5%?

I know what you are saying, because in your portfolio, it is behaving sort of like that. However, you are the one paying the interest to yourself rather than an outsider paying you interest, so in some sense, it is a zero sum. It is simply the transfer of money from your taxable account to your tax-sheltered account.


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