The Money Mustache Community
Around the Internet => Antimustachian Wall of Shame and Comedy => Topic started by: MrsPete on April 21, 2015, 04:24:30 PM
-
We're on someone's list because we frequently recieve post cards advertising a GORGEOUS piece of land that's being sold for a super-low price in a one-day only sale. For example, the one we received today is absolutely beautiful, located in the mountains, includes a lakefront building spot, something like 3 acres for 17.5K. Great deal, if it were real.
Anyway, we often look at these things to see what the gimick is. Sometimes it's that you can buy the land for a low price, but you must build within a year using their contractor. Other times they have ONE lot at that price, and the others for 100K. Other times it's an auction, so you know that the low price you see is only a starting price.
Anyway, this one today took the cake: The post card urged us to USE OUR 401K TO BUY THIS PROPERTY! That's so irresponsible that it should be illegal! We don't need to urge the average American to use his only retirement savings to buy a lot upon which to build a custom house!
-
Anyway, this one today took the cake: The post card urged us to USE OUR 401K TO BUY THIS PROPERTY! That's so irresponsible that it should be illegal! We don't need to urge the average American to use his only retirement savings to buy a lot upon which to build a custom house!
Yeah, but it's real estate. It never loses value! Of course the next buyer will love the fact that you installed a hot tub in your living room. Don't be afraid to put it on your Home Depot CC. You're building equity!
-
We're on someone's list because we frequently recieve post cards advertising a GORGEOUS piece of land that's being sold for a super-low price in a one-day only sale. For example, the one we received today is absolutely beautiful, located in the mountains, includes a lakefront building spot, something like 3 acres for 17.5K. Great deal, if it were real.
Have you ever seen Glengary Glen Ross?
-
The post card urged us to USE OUR 401K TO BUY THIS PROPERTY! That's so irresponsible that it should be illegal! We don't need to urge the average American to use his only retirement savings to buy a lot upon which to build a custom house!
In general, you're right. However, if used strategically as part of a larger plan, a 401k loan can help you on your way to FIRE if you don't have another pool of cash.
Mrs. DCA-SEA and I are using a retirement plan loan for the down payment on a house with a large basement apartment. Because the rent on the basement will almost offset the mortgage on the whole house, we will pay back the retirement plan loan quickly, and then turn to other priorities (savings, student debt).
-
That's so irresponsible that it should be illegal!
I've used my 401k (and hubby's) to buy 4 out of the last 5 properties I purchased. I max it out for the tax deduction, knowing full well that I planned to borrow against it to buy real estate. If they do make it illegal, I sure hope they wait until I'm out of my accumulation phase :)
-
The post card urged us to USE OUR 401K TO BUY THIS PROPERTY! That's so irresponsible that it should be illegal! We don't need to urge the average American to use his only retirement savings to buy a lot upon which to build a custom house!
In general, you're right. However, if used strategically as part of a larger plan, a 401k loan can help you on your way to FIRE if you don't have another pool of cash.
Mrs. DCA-SEA and I are using a retirement plan loan for the down payment on a house with a large basement apartment. Because the rent on the basement will almost offset the mortgage on the whole house, we will pay back the retirement plan loan quickly, and then turn to other priorities (savings, student debt).
We on this forum are also intelligent enough to know how to start a debt with a clear idea of how to pay it off and/or put it to productive use. How many "overheard at work" posts are about people taking 401k loans and thinking they just got a Christmas bonus?
-
The post card urged us to USE OUR 401K TO BUY THIS PROPERTY! That's so irresponsible that it should be illegal! We don't need to urge the average American to use his only retirement savings to buy a lot upon which to build a custom house!
In general, you're right. However, if used strategically as part of a larger plan, a 401k loan can help you on your way to FIRE if you don't have another pool of cash.
Mrs. DCA-SEA and I are using a retirement plan loan for the down payment on a house with a large basement apartment. Because the rent on the basement will almost offset the mortgage on the whole house, we will pay back the retirement plan loan quickly, and then turn to other priorities (savings, student debt).
This isn't even a house. It's just a plot of land! So unless you really, really love camping...
-
Frugal alternative to houses: tents. Buy land, set up a tent.
-
Frugal alternative to houses: tents. Buy land, set up a tent.
(http://i2.cdn.turner.com/cnn/dam/assets/140522124843-08-tiny-house-horizontal-gallery.jpg)
Its a thing. People do it. You could argue they are even more mustachian... but its too small for me.
-
We're on someone's list because we frequently recieve post cards advertising a GORGEOUS piece of land that's being sold for a super-low price in a one-day only sale. For example, the one we received today is absolutely beautiful, located in the mountains, includes a lakefront building spot, something like 3 acres for 17.5K. Great deal, if it were real.
Have you ever seen Glengary Glen Ross?
bahaha! Exactly what I was thinking!
...all train compartments smell vaguely of shit. It gets so you don't mind...
-
Have you ever seen Glengary Glen Ross?
"Coffee's for closers only."
-
Frugal alternative to houses: tents. Buy land, set up a tent.
You can get a short single wide for about $20k-$30k. You can find 1200 sq ft double wides on sale for $50k.
They're rather nice. :)
-
I'd much rather go for the tent. Or a cabin.
-
What, you can't use your retirement account to buy your retirement property? Sounds pretty reasonable to me...;)
The saddest part would be the taxes on a large lump distribution. I bet it happens all the time when people pay cash for RVs, etc.
-
The post card urged us to USE OUR 401K TO BUY THIS PROPERTY! That's so irresponsible that it should be illegal! We don't need to urge the average American to use his only retirement savings to buy a lot upon which to build a custom house!
In general, you're right. However, if used strategically as part of a larger plan, a 401k loan can help you on your way to FIRE if you don't have another pool of cash.
Mrs. DCA-SEA and I are using a retirement plan loan for the down payment on a house with a large basement apartment. Because the rent on the basement will almost offset the mortgage on the whole house, we will pay back the retirement plan loan quickly, and then turn to other priorities (savings, student debt).
Just be careful if it is from a 401k, if you leave your job or get fired you need to repay the loan in full within 60 days (I believe) to avoid the penalties which is your current tax rate plus 10%