have $200k cash, and $250k in 401k, loan balance $400k. currently renting the home positive income around $300. I am in mid 30.
401k is managed last year performance with the recent market issue -8%, worry that there will be big dump soon.
what do you think?
- What? You're thinking about withdrawing from a 401(k) to pay down a mortgage? Why? Didn't you go for fixed rate? Could've locked in a ridiculously low rate.
- What is the interest on 401k loan? If it is the same as your mortgage rate, then converting half of 401k to cash and borrowing against it makes more sense than taking out that amount from bank. After all your 401k loan payoff interest goes back to your account and not to bank
- Salesforce hfgnntunvPay off mortgage - great idea
Use 401k to do so - are you nuts?
Leave your 401k alone or even better just forget it exists when you thinking about assets you have.
- Forgetting about 401k is a bad idea)) Market can nose dive bad and you can lose your investments (assuming it is in stocks or stock funds). This could happen right before you need to start withdrawing from it, nobody is insured against market crashes. There is also a risk of nationalization of 401k in future. This possibility is not so remote considering ideas of extreme democratic left to bail out SS before it goes into deficit. No need to panic now but be prepared to act at some point.