It seems to me that it might be a good idea to take out a loan on my 401K to protect it from fallling any further. What would be the pros and cons to that?
If the market fell clear down, I'd still have my loan amount wouldn't I?
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401K Loan Wise?
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 Jean |
401K Loan Wise? |
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Posts: 1 (10/08/08 09:20:15) |
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jdnay |
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Posts: 359 (10/08/08 16:17:24) |
Why would you do this? Doesn't make any sense at all. If you want to keep your assets from falling as a result of the stock market, move the money to bonds
or a money market fund.
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Monica44 |
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Posts: 9 (02/11/09 09:57:16) |
Don't take out a loan on your 401K to protect. There is no reason for this. Unless you are going to retire in the next year I would not worry about the
drop down in the market as by the time you retire it could fluctuate several times.
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ralexander |
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Posts: 9 (02/17/09 10:34:49) |
You might think you're protecting yourself from further downfall, but you're really just locking in the losses by withdrawing the money at 'the
bottom' and repaying it while it goes up.
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fender5150 |
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Posts: 132 (04/23/09 07:31:10) Contributing Member |
It's really hard to stay in while things are going down.
Find an Investment Consultant that you trust, and stick with proactive strategy. Selling in this market (without sound investment advice to back you up) is reactive, and a losing strategy. I know this sounds harsh, and I'm guessing you won't take the advice: Nothing personal (I don't know you!), most people wouldn't take this advice. Most will sell in a down market. |
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