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To: Freedom4US
A couple of advantages of my company's plan . . .

1. They DO allow me to keep contributing while I repay the loan.

2. The interest rate is fixed for the full term of the loan (as long as five years).

Item #2 is a huge advantage especially if interest rates rise. It even works well in a low-interest environment like we see today if you have the ability to borrow the money, invest it in something that gives a decent rate of return OUTSIDE your 401(k) plan, and then pocket the difference (after paying taxes on it) as you pay the loan off.

115 posted on 03/23/2010 6:30:50 PM PDT by Alberta's Child ("Let the Eastern bastards freeze in the dark.")
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To: Alberta's Child

That is excellent advice!!

B U M P


133 posted on 03/24/2010 9:56:55 AM PDT by stephenjohnbanker (Support our troops, and vote out the RINOS)
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