Would it be possible for me to borrow money from my 401k to begin day trading or to invest outside?

Question

Eg. back when google came on the market I was thinking about borrowing money from my plan and buying the stock. Look how much the value for the stock has went up. I know that it can go up and down and you can loose money.

Answer 1

Borrow as in a loan or take a withdrawal?

Loans can be taken on a 401k, assuming your employer allows and you can do what you want with the money. But remember, loans have to be paid back. If not, you are subject to taxes and penalties.
If you don't want a loan, most employers allow withdrawals (hardships or straight withdrawal). However you must meet requirements from the IRS and possibly your employer. Again, you'll be subject to taxes and penalties.

Answer 2

Possible? Yes. Advisable? No. Horrible idea. If you bet on the right horse every time you'd be rich. A 401k IS an investment. Too many people think they'll get rich quick investing. It doesn't work that way. If you want to play a bit and take a risk, save up and do it. Only take big risks with money you don't care about. And VERY few people make a profit day trading.

Answer 3

Just don't do it. Their are thousands of professional investors who will eat your lunch if you try. You want to make money? Stick your 401k 70% in a balanced equity fund and 30% in a bond fund. Every couple of years rejiggle your account to maintain that balance. Spend all of your remaining effort trying to advance your existing career. If you try to beat Wall Street you will lose.

Answer 4

We are currently using a few brokers that allow us to use our 401k to trade the forex market.
If you would like to know more about trading the forex market with no guess work, please click on http://www.4xmoneytrain.com
You'll be able to find out more about those brokers.

Answer 5

yes call your broker and he can arange this for you but you will have to pay taxes on it either now or at the end of the year