Easy, my average rate over the last two years is 12% per year.
Take a look back for 10 years
Easy, my average rate over the last two years is 12% per year.
Take a look back for 10 years
As part of my preps, I need to get out of financial debt.
So, a "friend" has some significant credit card debt. This friend can pay off this credit card debt by taking out a loan against his 401 plan. What this means is that the friend will have to pay back into his 401 to pay off the 401 loan. The interest paid on the 401 loan goes back into the 401 as well.
What's the down side here? The interest on the 401 loan is much lower than interest on credit card. The interest paid on the 401 loan goes to my own 401, not to the banks as in credit card interest.
All of my 401 is tied up in paper instruments (stock). If the market crashes, much of that value would be lost anyway, and if I didn't take out the loan, would still have the credit card debt.
My job is very secure.
Should I or shouldn't I?
Correct. I sometimes use 7% with my older clients to also account for the more conservative allocations when they are nearing retirement.It goes up or down but the average that people use is 8% over time.
stock market isn't going anywhere. Will we see more big dips like in 2008, 2009? Absolutely. Market is cyclical.stock market is hitting the skids....Ruskies just dumped the dollar...get your money out of your 401K and pay off your house with it...at least then you know where it is and what it's worth.
When the mid terms are done, it'll be Katie bar the door.
stock market isn't going anywhere. Will we see more big dips like in 2008, 2009? Absolutely. Market is cyclical.
But don't sacrifice the liquidity of a 401k just to pay off a house. If all of your equity is in your house, what do you do for income?
And too many people think owning a home is an instant money maker. Absolutely not. No guarantees.