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Learning, Sharing, and Teaching => Investor Alley => Topic started by: FastStache on July 12, 2014, 12:01:19 PM

Title: When to pay off 401K Loan
Post by: FastStache on July 12, 2014, 12:01:19 PM
I took out a loan of about 30K to fund my house purchase in late May. I can't pay it back until I have it out for at least 4 month. I have sold my old house and I have the funds to pay it back now.

I am maxing out my 401K ocntributions and Roth IRA every year now. So, I am still putting in 30K plus a year.

Should I pay the loan as soon as the 4 months are up or take the chance and pay it back if the market tanks? I feel I can be a bit of a risk taker since I still have a high savings rate.
Title: Re: When to pay off 401K Loan
Post by: rpr on July 12, 2014, 12:09:17 PM
Just pay it back at the earliest. The market can go up or down. In the absence of a crystal ball, Keep It Simple.
Title: Re: When to pay off 401K Loan
Post by: GlassStash on July 12, 2014, 06:25:56 PM
Just pay it back at the earliest. The market can go up or down. In the absence of a crystal ball, Keep It Simple.

Nailed it. Don't be a market timer, very few have been able to do it with any consistent success.