| Author | Message | ||
Mrhyderabad Hero Username: Mrhyderabad Post Number: 12125 Registered: 01-2008 Posted From: 98.221.181.44 Rating: N/A |
 neeku evari opinion kaavalo direct calling thread veyochu kadaa ? Don't say you don't have enough time. You have exactly the same number of hours per day that were given to Helen Keller, Pasteur, Michaelangelo, Mother Teresea, Leonardo da Vinci, Thomas Jefferson, and Albert Einstein | ||
Xxx Hero Username: Xxx Post Number: 10820 Registered: 04-2009 Posted From: 172.72.87.25 Rating: N/A |
this is the key , I thought cj is referring to dowing all the cash he has in his hand now vs taking the loan from 401k - | ||
Cinejeevi Side Hero Username: Cinejeevi Post Number: 3739 Registered: 10-2014 Posted From: 72.166.89.74 Rating: N/A |
aite baava oka paatikavelu pampeyyi. guarantee kavalante emanna papers pedata
good points. One time admin fee of 125 is there or thats what fidelity guy said Jihvaagre Vartate Lakshmi, Jihvaagre Mitra Baandhavaha Jihvaagre Bandhanam Praapti, Jihvaagre Maranam Dhruvam | ||
Boglehead Junior Artist Username: Boglehead Post Number: 141 Registered: 06-2014 Posted From: 174.59.126.97 Rating: |
Its not necessarily a bad idea. Assuming you need to get a loan from somewhere, and you want to take it from your 401K, this is how it works: 1. There is a limit to the amount you can borrow - 50K or 50% of the balance in 401K, whichever is less 2. Interest rate is likely around 4.25%, which goes back into your 401K account 3. Double taxation: There isn't any except this: Lets say you take 20K loan and the total amount you paid back is 22K (20K principal +2k interest). 20K is is pretax, when you took the loan, and is still pre-rax when you pay it back. So, no double taxation there. However, on 2K (interest), which now has become part of your 401k balance, you will pay taxes when you withdraw money. If your marginal tax bracket is, say, 25% when you withdraw money, you will owe $500 tax on that money. So, basically when people about double taxation, they are talking about this. In theie view, this 2k in interest is post-tax money, on which you will be paying fed tax again. The way, I look at it is, if I borrowed this 20K from somewhere else, I would be paying them back more than this $500. However, one might argue about the opportunity cost of the money you took out of your 401K, which depending on the loan amount and payoff period, may not be something I would worry about. 4. There are administrative costs associated with the loan 5. If your employment is terminated, you will have to pay back the loan balance pretty quickly. | ||
Andhrawala Legend Username: Andhrawala Post Number: 49339 Registered: 03-2008 Posted From: 152.51.56.1 Rating: N/A |
even for an external loan - When you pay back the money , it is paid from you own money and you had paid the taxes already You will have to pay interest on the loan from 401k - vere loan ki koodaa interest pay seyyaaali instead of paying outsider u pay to urself which is the beauty also if u are confident that u can make 10% return on 401K then u will go to outside loan also people go to 401K loan when other avenues are exhausted. 401K loan can bu used for down payment on the house No Signature | ||
Xxx Hero Username: Xxx Post Number: 10817 Registered: 04-2009 Posted From: 172.72.87.25 Rating: N/A |
When you take a 401k loan 1. You will have to pay interest on the loan from 401k 2. When you pay back the money , it is paid from you own money and you had paid the taxes already, it goes back to the pool in 401k and will be taxed at the retirement - | ||
Xxx Hero Username: Xxx Post Number: 10816 Registered: 04-2009 Posted From: 172.72.87.25 Rating: N/A |
you mean on the mortgage ? mortgage interest will less than the 401k interest that you will pay .. - | ||
Andhrawala Legend Username: Andhrawala Post Number: 49338 Registered: 03-2008 Posted From: 152.51.56.1 Rating: N/A |
Manam pay sese interest on the loan amount No Signature | ||
Andhrawala Legend Username: Andhrawala Post Number: 49337 Registered: 03-2008 Posted From: 152.51.56.1 Rating: N/A |
Idhi ardham kaaledhuu 401K loan ki nuvvu interest pay sesinaa daaniki tax deduction vasthindhii He is taking loan from 401K not withdrawl CJ - also if u have brothers or bavamaridhis u can receive $10K as gift from them. SO if u sell house in India u can route thsoe proceeds under this head No Signature | ||
Xxx Hero Username: Xxx Post Number: 10814 Registered: 04-2009 Posted From: 172.72.87.25 Rating: N/A |
where is this coming from ? if there a 5% guarenteed , I would invest in that rather than in 401k - | ||
Xxx Hero Username: Xxx Post Number: 10813 Registered: 04-2009 Posted From: 172.72.87.25 Rating: N/A |
you can never time the market , but in 30 + years , you are supposed to be better in stock - | ||
Andhrawala Legend Username: Andhrawala Post Number: 49336 Registered: 03-2008 Posted From: 152.51.56.1 Rating: N/A |
401K loan theesukuntee for that amount u are saved from market meltdown and also u get a guarenteed retun of 3-5% rate adhi kavii bhaavm No Signature | ||
Saint Legend Username: Saint Post Number: 59770 Registered: 01-2011 Posted From: 144.230.191.36 Rating: N/A |
https://hg.schwab.com/ | ||
Xxx Hero Username: Xxx Post Number: 10812 Registered: 04-2009 Posted From: 172.72.87.25 Rating: N/A |
You need to pay more interest rate than the mortage on the loan You need to pay taxes twice , i.e while paying back , it is the tax free money that is going back to 401k .. right away you are losing 30% as per my knowledge .. this is my basic understanding of double taxation , may be wrong - | ||
Idiot1 Side Hero Username: Idiot1 Post Number: 4086 Registered: 07-2008 Posted From: 107.77.76.87 Rating: N/A |
4-5 % garunteed returns endi market naakesthe 401 kooda naakeethqdi  | ||
Andhrawala Legend Username: Andhrawala Post Number: 49335 Registered: 03-2008 Posted From: 152.51.56.1 Rating: N/A |
Good thing is ur 401K will be having guarenteed return of 4 or 5% whatever is the rate of interest Downside is if u leave the company or they layoff u need to repay the laon within 3-6 months or they will treat it as distribution No Signature | ||
Cinejeevi Side Hero Username: Cinejeevi Post Number: 3738 Registered: 10-2014 Posted From: 72.166.89.74 Rating: N/A |
hmm. interesting and want to hear more from regular money experts as well. Time there to make a decision so trying to get expert opinions. mottam unnnadanta khali chesi down cheyyatama (literally no savings) or 401 lonchi max ettaDama ani (can have a good cash flow) options!! thx again. will check back after walk  Jihvaagre Vartate Lakshmi, Jihvaagre Mitra Baandhavaha Jihvaagre Bandhanam Praapti, Jihvaagre Maranam Dhruvam | ||
Xxx Hero Username: Xxx Post Number: 10810 Registered: 04-2009 Posted From: 172.72.87.25 Rating: N/A |
Stick to it .. it is not good - | ||
Bunty717 Moderator Username: Bunty717 Post Number: 48256 Registered: 02-2008 Rating: N/A |
enni houses unnayi meshaaru meeki.. | ||
Vasu Side Hero Username: Vasu Post Number: 9844 Registered: 10-2014 Posted From: 173.72.62.217 Rating: N/A |
I don't mind taking a loan out of 401k in current market conditions. As per technical charts... market collapse ki high chances unnayi... 10-12% positive kanna negative ki chances ekkuva. Significant amount cash down chesthe monthly payment konchem taggutadi... for my first home I took loan from 401k | ||
Vasu Side Hero Username: Vasu Post Number: 9843 Registered: 10-2014 Posted From: 173.72.62.217 Rating: N/A |
IRA is best option.... you can manage based on the fund choices available.... | ||
Mrhyderabad Hero Username: Mrhyderabad Post Number: 12124 Registered: 01-2008 Posted From: 98.221.181.44 Rating: N/A |
there is no black and white answer.. it depends on many variables why do u want to do it when the mtg rates are rock bottom? 3% interest is almost like free money for 15-30 years... your 401k might yield more than 10-12% if you invest carefully so if you take loan on your 401k, then you are losing your those returns and saving 3% interest I wouldn't do it Don't say you don't have enough time. You have exactly the same number of hours per day that were given to Helen Keller, Pasteur, Michaelangelo, Mother Teresea, Leonardo da Vinci, Thomas Jefferson, and Albert Einstein | ||
Sanju Side Hero Username: Sanju Post Number: 3231 Registered: 02-2008 Posted From: 208.178.195.218 Rating: N/A |
thread padindi kabatti ikkadey adigestha.. current company 401k vundi..repu job maradaniki kotha company vodu VRS retirement plan antunnadu...401k to VRS ki transfer possible eyna? | ||
Gotcha Megastar Username: Gotcha Post Number: 24031 Registered: 02-2008 Posted From: 172.87.48.134 Rating: N/A |
https://www.fatwallet.com/forums/finance/1168251/ ... | ||
Cinejeevi Side Hero Username: Cinejeevi Post Number: 3737 Registered: 10-2014 Posted From: 72.166.89.74 Rating: N/A |
is it good idea to take loan from 401K for part of down payment towards purchasing a house? what r the good and bads? Searched Internet and they say one ends up paying double taxes and other risks. Did not see any +ve side of it except that if all is well one will be paying the principal+interest to his own account. Did anyone in DB tried this? or wanted to try but opted out with reasons? thx for your time and will visit the thread back in a while. Jihvaagre Vartate Lakshmi, Jihvaagre Mitra Baandhavaha Jihvaagre Bandhanam Praapti, Jihvaagre Maranam Dhruvam |
