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Old 02-25-2015, 01:37 PM   #43
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Quote:
Originally Posted by missourijan View Post
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
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Old 02-26-2015, 04:36 PM   #44
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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.

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Old 03-05-2015, 08:55 AM   #45
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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....
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Old 03-06-2015, 08:20 AM   #46
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Very, very bad idea.

Don't do it.

Talk to a fee only FP.
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Old 03-07-2015, 02:02 PM   #47
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Did anyone above mention a home equity loan?

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Old 03-07-2015, 04:15 PM   #48
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Old 03-07-2015, 06:39 PM   #49
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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.
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Old 03-14-2015, 09:12 AM   #50
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Watch the tax penalty, I learned the hard way.


Quote:
Originally Posted by WildRV View Post
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?
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Old 03-14-2015, 09:24 AM   #51
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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!)
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Old 03-14-2015, 10:21 AM   #52
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Got it?

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Old 03-14-2015, 10:31 AM   #53
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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........
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Old 03-14-2015, 10:39 AM   #54
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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.
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Old 03-14-2015, 10:46 AM   #55
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Quote:
Originally Posted by WildRV View Post
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.

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Old 03-14-2015, 11:45 AM   #56
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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
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