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Author: mkarim Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25316  
Subject: Implications of borrowing from 401K... Date: 8/28/1999 10:43 PM
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My 401K plan, like many, does not have any good mutual funds. In fact, the fund I am invested in, has not grown at all since March.

I wanted to know the implications of borrowing from my 401K plan and investing in a solid, long-term stock (like Microsoft). This investment would probably grow quite a bit faster than any mutual funds in my 401K plan.

In this case, I would be paying back the borrowed money plus about 10% interest. The good thing is that the interest will also go into my 401K account (I would be paying myself, instead of paying someone else). This SEEMS to be better than borrowing money on margin from a brokerage firm; in this case, interest would go to the brokerage firm, rather than to me.

Any advise would be greatly appreciatd.

Thanks a lot.

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