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Subject:  Re: The downside of 401k loans... Date:  2/10/2015  5:25 PM
Author:  aj485 Number:  309018 of 312957

I'm going to make this argument, but she's not much of a numbers gal when it comes to finances, lol. In her mind, it's $13.8k paid plus $48k, vs a one time $19.3k and walking away.

Maybe if you show her the statement where the 401(k) balance went down by $50k, and remind her that the money won't be going back in if it's taken as a distribution? That way, she can compare the $13.8k + $48k to $19.3k + $50k.

As both you and PSU mentioned, the long term value of that $48k is potentially much greater. I get that. Convincing her to see it that way is my challenge. She's good (great) at many things, but financial matters is not one of them.

Well, I hope that you can convince her, as it would be a really bad decision to pay taxes and penalties, IMO.

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