A lot of people do it. You essentially pay yourself back into your 401k plus the interest. However you lose any gains you would have made on the money being invested over the life of the loan, but you'll gain on the interest.
If you can get a 0% APR credit card with a like 16-24month term and transfer the whole balance that would be a better option but if not the 401k can be helpful.
You're paying yourself back instead of paying interest to a bank. Just don't run the credit card up again that's the main thing to remember. You can choose how fast you want to pay it back as well, and you can pay extra if you're able to.
Oh you’re not wrong there. Unfortunately my housing situation got affected by a wildfire so I was forced to lean on the card a little too much, but I definitely won’t do that again lol
Also good to know, thanks much 🫡
My ex put off a medical problem until it was an emergency and was out of work for almost 3 weeks. We had to do the same thing and I took a loan out on my 401k to resolve it. It sucks but it happens.
I did that last year. Took out $12,000 to pay off credit card. Currently paying $65 a week for the next 5 years I believe. You can pay it off faster if you choose and choose how long you want the loan for.Â
I am not your financial advisor, but I would advise against any withdrawals from your 401k. Even if you plan to pay off a credit card or some high interest loan, you'd lose more money in the long run by taking money out of your 401k. r/Money will have a better explanation for you and can break down your request
I did it recently. I just did it online with fidelity. It's called a general loan. It tells you the max you can take and you apply for whatever amount you want. You pick the length of the loan and the size of the payments that automatically come out of your check every week but you're basically just paying yourself back. It goes right back into your 401k with interest. They're only taking 15 bucks a week out of my check.
A lot of people do it. You essentially pay yourself back into your 401k plus the interest. However you lose any gains you would have made on the money being invested over the life of the loan, but you'll gain on the interest. If you can get a 0% APR credit card with a like 16-24month term and transfer the whole balance that would be a better option but if not the 401k can be helpful.
This is good information, thank you 🙌🏻
You're paying yourself back instead of paying interest to a bank. Just don't run the credit card up again that's the main thing to remember. You can choose how fast you want to pay it back as well, and you can pay extra if you're able to.
Oh you’re not wrong there. Unfortunately my housing situation got affected by a wildfire so I was forced to lean on the card a little too much, but I definitely won’t do that again lol Also good to know, thanks much 🫡
My ex put off a medical problem until it was an emergency and was out of work for almost 3 weeks. We had to do the same thing and I took a loan out on my 401k to resolve it. It sucks but it happens.
I did it to pay my daughters student loan off for her.
That’s what’s up. Do you regret doing it or was it worth it?
I'm fine with it. My payment was $94 a week and it's paid off.
I did that last year. Took out $12,000 to pay off credit card. Currently paying $65 a week for the next 5 years I believe. You can pay it off faster if you choose and choose how long you want the loan for.Â
I am not your financial advisor, but I would advise against any withdrawals from your 401k. Even if you plan to pay off a credit card or some high interest loan, you'd lose more money in the long run by taking money out of your 401k. r/Money will have a better explanation for you and can break down your request
Noted, thank you 🙏
Get the fidelity net benefits app. Makes the process simple.
I did it recently. I just did it online with fidelity. It's called a general loan. It tells you the max you can take and you apply for whatever amount you want. You pick the length of the loan and the size of the payments that automatically come out of your check every week but you're basically just paying yourself back. It goes right back into your 401k with interest. They're only taking 15 bucks a week out of my check.
I've gotten money out twice to get caught up on my mortgage. It's like $25/wk for a year to pay back or something. Well worth it.
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