Using 401k loan for another investment.

[mathjak107]

well of couse no one can predict the future but just based on to date ,taking the deduction through most of our earning years on a 401k or traditional ira and not paying the taxes up front like a roth or taxable account has resulted in less and less taxes paid as time went on .

the brackets increased every year for over 30 years and are still increasing allowing more and more income through at lower rates. even at the same tax rates im a head of the game by defering the taxes longer and longer.

until i see that change im not figuring on any higher tax rates.

boy had i paid taxes up front during my working career i would have lost more of the money i have to the taxes up front instead of growing more money and paying less of it in tax today .

[Bideshi]

Look at it this way, if your 401k is in stable value paying 4%, and you borrow it at 4%, you're paying 8% for the use of that money. How likely is your intended investment to beat 8% ?

[cd771]

The interest on a 401K loan goes back to your 401K so techinically you aren't losing it. You are actually gaining 4%. However you are not receiving returns on the money until it is paid back. I am considering doing something similar so I've been looking into this. Going to use it to paydown higher debt. Like a debt consolidation loan from myself.