allright. so im thinking of borrowing 50k from 401k?

Water Cooler
#61

Yeah family loans are gifts IMO. don’t expect it back, especially from the woman who shot you from her birth cannon. *amazing AF moment btw*

For nerdy, whats the cash for? shouldn’t she be paying down the debt? Can’t imagine her interest rates to be less than 6%, and at that rate you have consider how much your equities can realistically yield above that.

/personal finance is indeed just a bunch of neckbeards who spend all day sharpening their pitchforks.

Themes from said sub:

You’re dead broke with 3 kids; “it’s all your fault with your life choices - why did you even have kids?”

You’re rich and need wealth management advice; “why are you wasting everyone’s time you don’t have problems banksta - becomes a game of one-upsmanship about who is worse off”

You’re a young professional who makes a good living hoping to save for a home: “Why do only STEM graduates get jobs? cue the sob application and interview stories about how they’re structurally incompatible with the employment market”

The only people who don’t get snide comments are those who are 22-26, can’t make rent in a high cost city, can never dream of owning because they took a useless arts degree and the housing markets, work 2 service jobs, and can’t afford to party, generally woe-is-me.

#62

You are setting up someone to fail, someone who is too big to fail in your life.

#63

never thought you’d be the person that cant handle the truth ohai.

isnt there a saying keep you friends close but your family closer? i keed i keed

but that’s a nice touching quote macca with a great allusion to the great recession

#64

It’s not me. People in general are harmed by this truth. That’s why other people - not me - have commented that you shouldn’t loan to family members. This conventional wisdom is driven by what I said.

#65

I am too big to fail.

#66

Damn, OP getting owned in that Reddit thread

#67

im really surprised at how adamantly against everyone is to borrowing from 401k in general.

#68

r/pf is such a cluster****. Sometimes I go there just to make myself feel better about my own life. r/frugal is hilarious how crazy some of them get about saving a bit of money. This guy posted in the wrong place: https://www.reddit.com/r/Frugal/comments/733sk2/im_about_to_get_a_giant_raise_and_i_wanna_buy_my/

or this glorious one https://www.reddit.com/r/Frugal/comments/733vm6/i_use_5_squares_of_toilet_paper_per_potty_break/

#69

TBF, you need to charge your mom L+20 points given the riskiness of the borrower and the emotional collateral you have on the line.

#70

You’re essentially trying to turn your 401k into a margin account. That’s just not a good move. Outside of unexpected, costly life changing events or a home purchase, I really don’t see why you would ever take out a 401k loan.

#71

My dump today was too big to flush.

Had to fish it out with my hand. Left it in the sink.

#72

Live with mom, do that stunt in the shared bathroom, then charge her 10% on a loan. That would be BSD move.

#73

why is borrowing from yourself not a good move? you are paying yourself the interest. And most margin accounts charge like 8%. i think people just have an archaic thought on this.

but lol. i got fat stacks coming in. models and bottles anyone?

#74

Because you already own the money so it is not comparable to margin…

#75

Thought Asians take care of their own, not charge usury rates

#76

BTW I took out a loan from Marcus last month at like 5 percent. I suspect your mom qualifies

#77

i’ll check right now and see if she gets approved. still have time to cancel. lol!!! i actually dont want to low key do it. didnt kno i had an alternative. amount borrowed? btw also maturity?

also got al ink on rates?

#78

Have you considered payday loans?

#79

Image result for thinking gif

#80

I am guilty of having 50% of assets in cash. How can i get over “buying the top” fear?