Good Sam Club Open Roads Forum: Around the Campfire: Investment Gurus-thoughts?
Open Roads Forum Already a member? Login here.   If not, Register Today!  |  Help

Newest  |  Active  |  Popular  |  RVing FAQ Forum Rules  |  Forum Posting Help and Support  |  Contact  

Search:   Advanced Search

Search only in Around the Campfire

Open Roads Forum  >  Around the Campfire  >  General Topics

 > Investment Gurus-thoughts?

Reply to Topic  |  Subscribe  |  Print Topic  |  Post New Topic  | 
Page of 4  
Prev  |  Next
troubledwaters

Potomac

Senior Member

Joined: 02/17/2017

View Profile


Offline
Posted: 03/07/20 09:53am Link  |  Quote  |  Print  |  Notify Moderator

way2roll wrote:

troubledwaters wrote:

Pay off the 401k loan. My 401k made over 20% last year, your's made 5% (at least the portion tied up in the loan).
It sure ain't a wash when your long term investments make 7 - 8% and your long term debt is costing 3.75%.


20% ??!!, where can I get on that gravy train? Is that the Bernie Madoff 401?
If you didn't make 20% or darn close on your 401k last year you are either overly coservative (which is fine if that's who you are) or got some bad funds in your 401k. I can assure you, that's not Bernie Madoff results, that's just regular ole TR Price 401k territory. Don't trust me, ask your friends how their 401k did last year.

fj12ryder

Platte City, MO

Senior Member

Joined: 08/19/2003

View Profile



Posted: 03/07/20 10:41am Link  |  Quote  |  Print  |  Notify Moderator

I did, and no one I talked to realized anywhere near 20% for the year. Some did that over the period of a month or two, but not for the whole year.


Howard and Peggy

"Don't Panic"

Old-Biscuit

Verde Valley

Senior Member

Joined: 06/20/2009

View Profile



Posted: 03/07/20 10:51am Link  |  Quote  |  Print  |  Notify Moderator

Pay off that 401K Loan

THEN start paying 'extra' monies on the mortgage payment


Is it time for your medication or mine?


2007 DODGE 3500 QC SRW 5.9L CTD In-Bed 'quiet gen'
2007 HitchHiker II 32.5 UKTG 2000W Xantex Inverter
On the Road Debt Free April '07
Off the road still Debt Free Jan. '14

troubledwaters

Potomac

Senior Member

Joined: 02/17/2017

View Profile


Offline
Posted: 03/07/20 11:15am Link  |  Quote  |  Print  |  Notify Moderator

fj12ryder wrote:

I did, and no one I talked to realized anywhere near 20% for the year. Some did that over the period of a month or two, but not for the whole year.
I guess I must be on top of the bell curve.

troubledwaters

Potomac

Senior Member

Joined: 02/17/2017

View Profile


Offline
Posted: 03/07/20 11:15am Link  |  Quote  |  Print  |  Notify Moderator

20.08%

Horsedoc

Dixie --- N. Georgia

Senior Member

Joined: 09/30/2002

View Profile


Offline
Posted: 03/07/20 01:08pm Link  |  Quote  |  Print  |  Notify Moderator

"If you had the choice of paying off a 401(k) loan on which you were earning 5% interest or would you pay down on your mortgage? "

I guess I don't understand how you are earning 5% on a loan. Help me here??

Crowe

Merrimack, NH

Senior Member

Joined: 01/29/2002

View Profile



Good Sam RV Club Member


Posted: 03/07/20 02:14pm Link  |  Quote  |  Print  |  Notify Moderator

I guess I don't understand how you are earning 5% on a loan. Help me here??

You are allowed to borrow up to $50K from your 401(k) account for certain reasons, one being to put a down payment on a home, which is what I did. You have borrowed your own money as it comes directly from your 401(k) account. You pay the loan back to yourself, directly into the account. Just like a regular loan, you must pay interest. You are paying the loan back into the 401(k) account, therefore you earn the interest. You are both the loaner and the loanee.


I may not have gone where I intended to go, but I think I have ended up where I needed to be Douglas Adams

RV-less for now but our spirits are still on the open road.

way2roll

Wilmington NC

Senior Member

Joined: 10/05/2018

View Profile


Offline
Posted: 03/07/20 03:35pm Link  |  Quote  |  Print  |  Notify Moderator

troubledwaters wrote:

20.08%


Ain't no way a 401 earned over 20% over a year. I work at a bank, a large one with a huge investment arm. There may have been spikes in earnings in certain months. But no way it averaged gains over 20%.

* This post was edited 03/07/20 04:20pm by an administrator/moderator *

winnietrey

seattle

Senior Member

Joined: 03/26/2005

View Profile



Posted: 03/07/20 03:40pm Link  |  Quote  |  Print  |  Notify Moderator

I don't think you could wrong eithier way, I would do whatever gives you the most peace of mind and helps you sleep at night. And not worry so much about which is the better fininical decision

Personally, even though I coud pay off my house, I won't becuase at 3.25% it is like free money and two you never really own a house, taxes, insurance repairs, still go on. And you have to live somwwhere. So in my mind it is just part of living, like buying food

Guy Roan

Florida

Senior Member

Joined: 09/04/2012

View Profile


Offline
Posted: 03/07/20 05:26pm Link  |  Quote  |  Print  |  Notify Moderator

Your first mistake was taking a loan out of your 401K .
Someone should have advised you against it.

Guy

Reply to Topic  |  Subscribe  |  Print Topic  |  Post New Topic  | 
Page of 4  
Prev  |  Next

Open Roads Forum  >  Around the Campfire  >  General Topics

 > Investment Gurus-thoughts?
Search:   Advanced Search

Search only in Around the Campfire


New posts No new posts
Closed, new posts Closed, no new posts
Moved, new posts Moved, no new posts

Adjust text size:




© 2020 CWI, Inc. © 2020 Good Sam Enterprises, LLC. All Rights Reserved.