Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Greetings, Blindman25, and welcome. You wrote:

In the specific case that dfaiella mentioned, the opportunity cost was minimized because fixed income securities were used to pay for the loan, which is itself just another type of fixed income security.

Run the numbers for yourself. No matter how you try to justify it, the loan from the 401k results in less money available at retirement than had the money not been removed during the loan period. The "minimized" opportunity cost is not necessarily the small matter you imply it is over the long-term.

Print the post  


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.