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General Real Estate Investing

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Frankie Woods
  • Investor
  • Arlington, VA
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Using your 401k loan as Reserves

Frankie Woods
  • Investor
  • Arlington, VA
Posted Apr 23 2018, 10:49

I'm struggling with the "where do you put your reserves" debate.  I'm pretty confident that relying on credit cards and lines of credit may not be wise in a black swan event.  In that regard, if you have $50k in a 401k that you can loan yourself, is this a good strategy to protect yourself in case of some unforeseen expense/emergency?  Is the timeframe between applying for the loan and receiving the funds prohibitive.  The only real downside is needing to pull the money out if the economy goes to sh**.  What have others experienced in their investing career!  Is there a better method other than using checking/savings accounts and CDs?  Anxiously awaiting your responses!

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