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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.

Regards..Pixy
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