The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retire Early CampFIRE


Subject:  Re: 401k Loan Date:  1/3/2005  7:54 PM
Author:  tmeri Number:  209493 of 793769

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.

Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us