Skip to main content
No. of Recommendations: 0
AJ, can we talk about this one:

2. 457 plan thru work. Balance $138,246 after a gain of 29.06% during 2019. That gain is very much atypical. In fact, I somewhat expect to lose much/all of that gain over the next 12 months, and would like to use some of the money before it vanishes with the 2020 election process. This money would be a loan against the balance at 4.5% with a $24 per year service fee. 4.5% vs 16.75%.

This one would be a loan. Essentially a balance transfer from 16.75% to 4.5% with a fixed payment, payroll deducted, for between 1-5 years. The money will be trickling back into the 457 until it is all right back in. Any interest or loss that those dollars would have incurred sitting in the stock funds is what I'd be giving up. Do you think the funds would beat 12.25% (16.75-4.5%) during the payback period?

I really REALLY think the fund will lose money over the next 16 months. If I have less invested during that time then there will be less loss. Of course, some of this is indeed speculation, but some is concrete.
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.