Quote:
Originally Posted by redd
Since my 401k is sinking im thinking of using a line of credit to buy a Kirkham i know the good part is you can write off the interest the bad part is you not paying down the principel but you can add money on some loans . good idea or bad ? Any ideas on this would be helpful? Thanks Jeff  |
Money paid in interest on a loan out of a 401K is not tax deductable.
If you borrow the money for say 10 years you lock that amount of money into recieving what ever rate of return your loan is.
If you are sure the market will not come back up for the time of the loan (and you are correct). then the interest you pay back to your 401K would be a better deal than leaving it in the market.
If you are wrong, you could loose a lot of money.