Have about 850k in stock in taxable account and 400k in 401k. TC is around 330k depending on how Yelp does. I have a mortgage on a SFH in SF. Single, no kids, no pets. Should I take a loan on 401k to buy a car? Or is it better just to sell some mutual funds in taxable account. I’m looking to really splurge and buy the brand new 2022 civic. I currently drive a 1999 Toyota Camry right now. Idk what I would do with it if I get a new car though. Maybe I won’t get a new car...
Lol
Honda is crap now. Your old Toyota will likely run better.
Toyota is evil though
How's Toyota evil
Why loan against 401k? Why not regular financing?
Depending on the details, he/she could be taking a load without paying much extra versus paying the interest of a regular financing. I see it clear, if the conditions allow it, load from 401k is the best option.
Do u understand the opportunity cost of being out of the market cbs? Just to save 2-3% interest you are forging 7% in market?
what happens if you’re not able to make monthly payments on the loan?
You have to send loan sharks on yourself and beat the shit out of yourself
Dumb question but why do you need a loan to buy a Civic?
This is a giant troll post
Wealthy people tend to be more discerning with money 🤷♂️. Wouldn't necessarily dismiss as troll
What's your basis in the stock you would sell? If you have big gains maybe don't sell, but consider margin loan. Why not just use cash flow?
If you need a loan, compare a HELOC on your home vs auto loan rates. Look at credit unions, not the the dealer.
Take a margin loan from the stock portfolio. No need to sell.
No.
You should inquire about rates first before deciding on whether to take a loan