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URL:  http://boards.fool.com/quoti-understand-about-losing-the-opportunity-21853521.aspx

Subject:  Re: 401k Loan Date:  1/4/2005  11:28 AM
Author:  lowstudent Number:  209608 of 736913

"I understand about losing the opportunity return (tax-free) on this 20k by having taken it out of my 401k. But, since I'm paying myself back at a decent interest rate – isn't it analogous to having a 36-month CD paying 4.5%?"

What you view is what I would see, the only pitfall is if you chose or have choosen for you a departure from your current employer, then the balance will be due in full immediately.

If you are going into such severe debt that you have to borrow from your 401k to cover it, you may want to fund your 401k a little less or a lot less. If you view this as a cash stash no good will come of it.


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