SWA 401k/House down payment

[Mr. Irrelevant]

True but payments you make to any loan are after tax. You arent really borrowing from your 401, you're borrowing against it. If you have 100k in your 401 and borrow 50k your ballance in your 401 account is still 100k. You still own all of the shares that you owned prior to the loan. If the shares increase in value you still see all of the return that you would have had you not taken out the loan. And if it cost you 5k in interest payments over the life of the loan that money goes into your account as well.

Sorry xXpress1, I've been out of the investment management game for only 4-5 months but I'd be shocked if what you posted wasn't 100% wrong. One of the big downsides to borrowing from a 401k is the possible loss of retirement $$$ due to appreciation in the market while you're paying back your 401k. It can be substantial if the timing is wrong!!!! Obviously there are benefits to borrowing, but there is probably more to PTinbounds situation than we can all know and only he and probably a financial planner should sit down and figure it out. Good luck PT. Big decision.


Mr. I.

 

[Snoopy58]

There is an excellent financial advisor on staff at SWAPA; when you (P.T.) get the intro to SWAPA, ask about it & they'll give you his name & phone extension. Good guy to talk to, and he can give you the low-down on how borrowing from the pilot 401(k) will work. He may or may not get too deep into your specific situation; if not, he can probably recommend someone who can.

As you said, this is a little ways off in the future, and rules & tax laws & such can change between now & then. SWAPA will have the answers for you well before you're making an offer on the new P.T. Manor!

Cheers,

Snoopy