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EZ_Money
Penny Pincher Member
USA
125 Posts |
Posted - 11/06/2009 : 16:00:26
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use the same situation
401k $10,000
takes a $10,000 loan. Earns $13,000 to pay it back.
$3,000 tax paid.
Starts retirement withdraws $10,000
$3,000 tax on 401k withdraw
Still $6,000 tax paid. It is the same not double taxed. Like I said forget about the 401k it changes nothing. Same result. |
Running total:
Halves searched:$14,445.50
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 11/06/2009 : 23:52:03
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It's those dang taxes that keep messing us up.. lol. The penalties can be a big discouragement also. In some cases it may be better to take your beating now, rather than take a bigger beating later. Of course you guys forget that the repayment would be with future dollars instead of current dollars. Those dollars are worth less every day. Of course when we get to Zimbabwe level inflation the government will figure some way to change the rules so that no matter what you did.. leave the money in the 401k, or borrow it.. you would still somehow come out behind.
There are actually 3 classes of people.
1. The haves
2. The have nots
3. The have not paid for what they haves (Those credit card people)
It is unamerican to live within your means.
Of course there is also the financial theory that many folks operate on. It is called "The Vacuum Theory of Finance" If you want something, buy it.. the need to make that payment will somehow suck the funds into availibilty just in time to make the payment.  |
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billo
Penny Collector Member
293 Posts |
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 11/07/2009 : 02:40:58
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If you have credit card balances it is always a good idea to pay them off. Where else are you gonna get that rate of return guaranteed in this market?
I am paying off my Home Depot card tomorrow. I got 6 months free float on some stuff I bought there on one of their promotional offers. As long as you pay it off before the 6 month anniversery it is interest free. The catch would be if you couldn't pay it off.. then they would jack you for all that accrued interest. I think their rate is something like 26.99% now. |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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Paying off credit cards with a 401k loan
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