Investor · Moab, UT · Member since 2016 · 101 posts · 27 votes
A couple years ago a took out a 401k loan. I am considering paying this off now while the market is low (it had been so high I was holding off). I'm hoping that if I pay it off now it will ride the market up when the market eventually goes up. I'm not sure if we are at the bottom of the market or not. I also have 16 rentals so perhaps I should hold on to the cash. I do currently have enough cast to pay my mortgages for almost a year. The loan is just over $8K. I'd love other peoples input. Thanks!
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
@Megan Arzt you are in great shape either way. Ordinarily people should be holding cash as much as possible at a time like this and things seem to be changing almost daily. I'm with the hold on to cash crowd. All the best!
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
@Megan Arzt you are in great shape either way. Ordinarily people should be holding cash as much as possible at a time like this and things seem to be changing almost daily. I'm with the hold on to cash crowd. All the best!
Financial Advisor · Blaine, MN · Member since 2014 · 477 posts · 387 votes
6y
@Megan Arzt I like your thinking. I probably wouldn't do it unless I had fully funded my Roth IRA though. It depends on your tax situation right now and your potential tax situation in the future. Also, Roth IRAs are much more flexible and accessible than 401(k)s.
Investor · Moab, UT · Member since 2016 · 101 posts · 27 votes
6y
@Scott Jensen unfortunately I learned this year that I can no longer contribute to my ROTH due to the fact that since I quit my teaching job and went full time into real estate, I have no earned income.
Financial Advisor · Blaine, MN · Member since 2014 · 477 posts · 387 votes
6y
@Megan Arzt Makes sense. Of course I don't know your situation, but if I were in your shoes I would probably pay off the loan, roll it to an IRA and consider converting some of it to a Roth IRA depending on the tax bracket.