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Oh noes! Not the black man! /sigh. Welcome to a democracy, it is still a democracy, even when your candidate loses. You don't have to like the man, but show some respect for the office he attained.
Maybe I'm the village idiot, but I find both Suze and Dave to be helpful. And I don't think their advice (at least from what I've read here and there) is all that different from one another. Both recommend being accountable to yourself and your means before you take any further steps. What's not to appreciate about that???
I'm a novice in many aspects of life, especially investments, but I'm also not setting out to make a huge buck... I wouldn't consider myself a "loser" either since we have ZERO debt beyond the mortgage and my husband's base salary is in the top 10%. I say, lay off..
most of her financial advice is not the correct advice except for her dealing with debt and or abusive situations.
her investment advice or retirement advice is geared to keep her band of financial misfits or financially ignorant from hurting themselves and is usually not the best way just the most benign.
as an example: telling someone to keep working to 70 may not be good advice for everyone out there but it will hurt no one.
her constant spewing about 401k loans being double taxed is not accurate but is more a play on words.
the list goes on and on and I can tell you this , if you want the best possible advice and are not in debt up to your eyeballs than she is not the source to go to for advice.
most of her financial advice is not the correct advice except for her dealing with debt and or abusive situations.
her investment advice or retirement advice is geared to keep her band of financial misfits or financially ignorant from hurting themselves and is usually not the best way just the most benign.
as an example: telling someone to keep working to 70 may not be good advice for everyone out there but it will hurt no one.
her constant spewing about 401k loans being double taxed is not accurate but is more a play on words.
the list goes on and on and I can tell you this , if you want the best possible advice and are not in debt up to your eyeballs than she is not the source to go to for advice.
Can you explain how 401k loans aren't double taxed? I'm not a financial misfit or ignorant, but am not all that investing savvy either. Is it just the interest on the loan that is double taxed or the full amount plus interest? Or a link to a better source would be appreciated; you already mentioned consuelo mack but that website did not give me the answer I was looking for.
Last edited by arrieros81; 09-09-2013 at 12:26 PM..
paying back the loan amount is no different than taking a 401k loan and going I no longer need the money so I am putting it back. you are just replacing money that you took out that was never taxed.
if you picture you have two pockets ,you can keep the never taxed money you pulled out in one of the pockets and leave it there and instead pay it back from your after tax income in the other pocket.
either way you pay no more in tax than if you didn't take a loan.
at no point will you pay 1 penny more in tax except perhaps on some interest.
Last edited by mathjak107; 09-09-2013 at 02:12 PM..
paying back the loan amount is no different than taking a 401k loan and going I no longer need the money so I am putting it back. you are just replacing money that you took out that was never taxed.
at no point will you pay 1 penny more in tax except perhaps on some interest.
But isn't there the chance that between the time you take the loan and pay it back, that the value of the stocks rise then you've essentially sold low and bought high? The opportunity cost of missing out in gains is a real risk? Though I suppose the converse would be true. I realize these are kind of rudimentary questions, thanks!
yes , you would be selling shares to take that loan and could miss out on future gains.
Ok, last off topic question I promise, so could taking out a 401k loan theoretically work in your favor if the value of the stock drops between the time you take out the loan and pay it back?
since stocks historically are up 2/3's of the time and down only 1/3 it can happen but you are really betting against the house.
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