I have roughly 30%in stocks and 30%in CDs and the rest in cash no other assets or expenditures. I was told I can use my 401k for a "first time" home purchase. sure would rather have the cash in hand if you know what I mean.
(single and lovin it)
2007-02-14 03:09:54 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
You can borrow from the 401K. Is it a good deal, generally not because you are paying the interest with after tax dollars and making it taxable at retirement.
A home purchase loan from the 401K can be paid back over a term that is greater than the five years for any other such loan. There are not penalties or tax involved in making a loan unless you default on making the payments.
2007-02-14 04:11:16 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
Nice diversification, but it might be too much. I would take it out of CD or Stocks. Last thing I would take it out of would be 401k however, it really depends on the forecast of your stocks and what they are set on doing. good luck
2007-02-14 06:03:28 · answer #2 · answered by mps988 2 · 0⤊ 0⤋
taking from your 401k is bad mojo.
If you have a rollover in there somewhere... as a last resort use that... dont forget about the tax liability.
2007-02-14 03:17:46 · answer #3 · answered by kd s 2 · 0⤊ 0⤋
Don't take a 401K loan. You will regret it. There are penalties involved and fees.
2007-02-14 03:14:45 · answer #4 · answered by megan261980 4 · 0⤊ 1⤋