Timeline for Is it wise to pay off mortgage with 401k?
Current License: CC BY-SA 4.0
14 events
| when toggle format | what | by | license | comment | |
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| Jun 9, 2019 at 21:00 | history | tweeted | twitter.com/StackFinance/status/1137826799067566080 | ||
| May 18, 2019 at 16:10 | answer | added | JTP - Apologise to Monica♦ | timeline score: 9 | |
| May 18, 2019 at 12:52 | comment | added | jpmc26 | I'm sure an answer will show up soon covering this in more detail, but consider that your earnings in 401k are effectively compounding. You can't just count the money you're withdrawing from the 401k; you also have to consider that the earnings aren't being reinvested to earn even more in the future. Given that your 401k is earning a much higher rate than the loan is accumulating, it would appear that's a bad trade off. | |
| May 18, 2019 at 3:16 | history | edited | Chris W. Rea |
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| May 18, 2019 at 1:50 | comment | added | chili555 | Would I liquidate money earning ~10.7% and pay income tax on it to extinguish a 2.75% debt? Never. | |
| May 18, 2019 at 0:41 | comment | added | Chris | Why not use your other investments that aren't tax advantaged to pay for the mortgage? Also you can take up to 50k loan from the 401k and pay yourself the interest instead. Granted this means less market exposure | |
| May 17, 2019 at 23:39 | comment | added | mkennedy | I feel like you don't have near enough in your retirement accounts now unless you also expect a pension. Start throwing extra money at the mortgage (after maxing out the retirement account contributions), and re-evaluate in a few years. | |
| May 17, 2019 at 23:10 | history | protected | JTP - Apologise to Monica♦ | ||
| May 17, 2019 at 21:29 | history | became hot network question | |||
| May 17, 2019 at 20:48 | history | edited | JTP - Apologise to Monica♦ | CC BY-SA 4.0 |
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| May 17, 2019 at 20:47 | answer | added | mhoran_psprep | timeline score: 11 | |
| May 17, 2019 at 20:43 | comment | added | JTP - Apologise to Monica♦ | Does the employer even permit this? Many do not allow a withdrawal while still employed. Are you planning to stay in the house or sell it once you retire? | |
| May 17, 2019 at 20:05 | answer | added | Raj | timeline score: 25 | |
| May 17, 2019 at 19:56 | history | asked | delliottg | CC BY-SA 4.0 |