|
|
02-25-2015, 01:37 PM
|
#43
|
Senior Member
Appalachian Campers
Join Date: Sep 2002
Location: Dixie !! (north Georgia) USA
Posts: 4,110
|
Quote:
Originally Posted by missourijan
Suze Orman would say no way, don't do it, no way. Your 401k is an appreciating asset, an rv is a depreciating asset.
|
Nailed it. You will lose the money you would have made in interest had you NOT take out the loan. Would what the amount of the load had the potential to make more in interest than the 2.5 percent you will be paying yourself back? Throw in the depreciation of the MH and you are losing money.
All that said, I have lost money on every coach I ever bought except the first one. When I bought #2 from the same company, the gave me trade in value exactly what I paid for the first one. I think I STILL lost money
|
|
|
|
Join the #1 RV Forum Today - It's Totally Free!
iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!
|
02-26-2015, 04:36 PM
|
#44
|
Member
Ford Super Duty Owner
Join Date: Feb 2015
Posts: 44
|
It is not wise to remove money out of your 401K just to get an RV. The Fed and state will consider it as income and taxes are a lot. If you must I would take out a loan and this way you would pay it back. Its just like leaving it in the G fund which is low interest. I retired last year from the DOD with 38 years and the money I take out each month is less than enterest made. Of course its up to you and your wife to make this desion.
Wiley
|
|
|
03-05-2015, 08:55 AM
|
#45
|
Senior Member
Join Date: Sep 2011
Location: Arkansas
Posts: 2,500
|
Can't speak on buying a rv from a 401K loan,,, but a few years ago we took out a 401K loan to buy DW a new car... (her old one was 17 yrs old) We end up paying ourselves back more interest than it was making. Hopefully paid off in 3 months... All depends I figure on how long you are going to work,,, and No, don't think I would do it for a rv....
__________________
Monkey, pilot of a Great Dane hauler,
2015 Silverado 2500 Duramax/Alison 4x4 CrewCab 2016 Cougar 28SGS
1ST CAV
|
|
|
03-06-2015, 08:20 AM
|
#46
|
Senior Member
Winnebago Owners Club
Join Date: Apr 2013
Posts: 1,061
|
Very, very bad idea.
Don't do it.
Talk to a fee only FP.
|
|
|
03-07-2015, 02:02 PM
|
#47
|
Senior Member
Join Date: Apr 2012
Location: Michigan
Posts: 683
|
Did anyone above mention a home equity loan?
Stano
__________________
Winter Home- Arcadia, Florida
USN Vietnam Veteran 1967-1971
DAV Lifetime Member
|
|
|
03-07-2015, 04:15 PM
|
#48
|
Senior Member
Join Date: Feb 2012
Posts: 327
|
Live now!
__________________
Navy Retired
2020 Ram 2500 Big Horn 6.7 Diesel
2022 Grand Design Reflection 315RLTS
|
|
|
03-07-2015, 06:39 PM
|
#49
|
Senior Member
Freightliner Owners Club
Join Date: Aug 2014
Posts: 470
|
Check with your accountant, he will steer you in the right direction. Enjoy life, don't be stupid with your money but enjoy it. I have never seen a trailer hitch on the back of a hearse. That being said, you are still young, so don't rush into anything without planning.
__________________
Charlie & Diane Amato
2015 Winnebago Tour 42 QD
Ferndale, Arkansas
|
|
|
03-14-2015, 09:12 AM
|
#50
|
Junior Member
Join Date: Mar 2015
Posts: 18
|
Watch the tax penalty, I learned the hard way.
Quote:
Originally Posted by WildRV
I'd like to get your thoughts on the idea of either borrowing or withdrawing money from a 401k for the purchase of an RV.
My DW and I are both over 55 years old and have a good sum of money saved up but it's all in our 401k's. I read some where that if you have left your job and you are over 55 that you can withdraw money from your 401k without penalty.
I'm interested in your comments and feedback if this is a good option or not for our RV purchase.
We've been looking at RV's in the 100 - 130k range so even borrowing the money from our 401k for a down payment is an option. Fortunately our 401k plan allows us to take a loan from from our plan even though we no longer work for the company that administrates the plan.
We both work and plan to continue to work until we are over 65 years old. So, making the RV and 401k loan payments would not be a problem.
Thoughts/comments?
|
|
|
|
03-14-2015, 09:24 AM
|
#51
|
Registered User
Join Date: Aug 2014
Location: western NC mountains!
Posts: 4,106
|
use it! this is what you saved up for - not to let it sit because you are 'warned' that there might be tax consequences! taxes will ALWAYS be in play no matter what you do - use your 401k -
or better yet, go ahead and pull out ALL of your 401k monies, pay the taxes, and be DONE WITH IT FOR THE REST OF YOUR LIFE!
(the only income 'taxes' you would pay from then on would be any small interest on where you park your money - but that may not even come into play because the JointMarried general tax deduction may take care of it!)
|
|
|
03-14-2015, 10:21 AM
|
#52
|
Registered User
Monaco Owners Club
Join Date: Oct 2009
Location: Varies Depending on The Weather
Posts: 8,517
|
Got it?
Dr4Film ----- Richard
|
|
|
03-14-2015, 10:31 AM
|
#53
|
Senior Member
Newmar Owners Club
Join Date: Oct 2009
Posts: 10,308
|
Quote:
Originally Posted by MisterT
use it! this is what you saved up for - not to let it sit because you are 'warned' that there might be tax consequences! taxes will ALWAYS be in play no matter what you do - use your 401k -
or better yet, go ahead and pull out ALL of your 401k monies, pay the taxes, and be DONE WITH IT FOR THE REST OF YOUR LIFE!
(the only income 'taxes' you would pay from then on would be any small interest on where you park your money - but that may not even come into play because the JointMarried general tax deduction may take care of it!)
|
You had no reason to even enrole/participate in a 401k plan with this thinking Tax free money went into it(25-?% while working and saving) and when withdrawn, one want it to come back out at a Low bracket(15-20%) to make the reason for doing it over all them years
You will even pay more taxes on the lump sum withdraw than if you just kept it while working........
__________________
2012 Essex 4544 2011 Jeep JK, M&G Braking, 2014 MTI 27' Hog Hauler, Wireless brake control, 2006 Ultra & 1989 Springer, 2003 Harley-Davidson
FLHR Road King Anniversary
|
|
|
03-14-2015, 10:39 AM
|
#54
|
Senior Member
Newmar Owners Club Spartan Chassis
Join Date: Feb 2005
Location: Sterling Heights, MI
Posts: 2,723
|
In would never touch my 401K for buying anything. Some people I work with do that for cars all the time, and then pay themselves back. I want to make sure the monies there in a few years when I retire.
__________________
Tricia & Dennis Lockhart
2010 Ventana 4333
Spartan MM w/Cummins 360 ISC
|
|
|
03-14-2015, 10:46 AM
|
#55
|
Senior Member
Join Date: Oct 2013
Posts: 284
|
Quote:
Originally Posted by WildRV
I'd like to get your thoughts on the idea of either borrowing or withdrawing money from a 401k for the purchase of an RV. My DW and I are both over 55 years old and have a good sum of money saved up but it's all in our 401k's. I read some where that if you have left your job and you are over 55 that you can withdraw money from your 401k without penalty. I'm interested in your comments and feedback if this is a good option or not for our RV purchase. We've been looking at RV's in the 100 - 130k range so even borrowing the money from our 401k for a down payment is an option. Fortunately our 401k plan allows us to take a loan from from our plan even though we no longer work for the company that administrates the plan. We both work and plan to continue to work until we are over 65 years old. So, making the RV and 401k loan payments would not be a problem. Thoughts/comments?
|
Back to the original post, there are no penalties to borrow against your 401k, however as you have read the replies, you entered the program for the purpose of financial support at retirement age. You have to look at how long you plan on working thus paying back the loan. If you can save substantial dollars on the interest, than it could be the better way, but it is not free money sitting there, you will need every penny when you stop working, that is what I believe the replies from the already retired members are attempting to educate you on. Good luck.
2013 Palazzo 33.3
|
|
|
03-14-2015, 11:45 AM
|
#56
|
Registered User
Monaco Owners Club
Join Date: Oct 2009
Location: Varies Depending on The Weather
Posts: 8,517
|
Quote:
Originally Posted by palehorse89
You will even pay more taxes on the lump sum withdraw than if you just kept it while working........
|
There are some people that just don't get it nor do they have a clue about their finances.
Those are the ones that DEFINITELY need to hire a financial attorney, adviser or anyone with a reputation and knowledge to help them put together their personal financial plan that will last for their lifetime.
Otherwise they will end up like so many people do that are illustrated on the TV show American Greed or they will end their life on social welfare and in poverty.
Dr4Film ----- Richard
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
Search this Thread |
|
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Discussions |
|
|
|
|
|
|
|
|
|
|
|
|
|