Posts: 147
Location: WI - Land of small muskies and big jawbones | Borrowing from your 401K to buy a boat is a not a good idea. Eventhough you will pay back your 401K with interest, the money you borrowed from it was pre-tax dollars that you will now have to pay taxes on and the money you will pay it back with will be after-tax dollars. This means you are actually being taxed twice on the same money. Not to mention any interest you would loose on the money you took out had you just left it in your 401K instead. Ask any credible financial advisor about borrowing from your 401K to buy a boat and see what they tell you. I would shop around for the lowest interest rate you can find and take out a loan from a financial institution.
Edited by Lockjaw 10/19/2006 7:12 AM
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