UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next
Author: rkevans69 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75375  
Subject: Re: Poll: 401K Roll it? Take it? Date: 4/3/2007 9:00 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
So, mathematically, he should still roll over the money into an IRA.

Try it one more time, assuming the original poster diverted the credit card payment into the IRA for those 15 years. Earning the same nominal 8% gains.

Or even if he diverts just half of the credit card payment into the IRA... 15 years is a pretty good period of time for compound interest, and you're allowing it to work against him...

I think it makes sense to pay off a nasty debt early in some cases. This might be one of those cases.

The ideal solution is probably to borrow from the 401(k) and pay yourself interest. Just because it forces you to replace the money instead of blowing it on luxuries like food.

Rick
Disclosure: I've paid off large debts at 28% interest rates in the not-so-distant past. It hurts.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Macro Economics

The Future, or What's Left of It
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement