Fianl Payment due and I dont have enough money.

[jdpudge]

Please explain to me this "loss" you speak of??? I taking a loan from my 401k.... I have no tax penalties, and no outrageous interest rate to pay, the interest I pay is going straight back into my 401k along with my payments toward my loan! If I were to lose my job, the loan I took out would be deducted from my 401k balance. Unless your some financial guru/advisor you have no buisness giving me advice.

 

Well... I am a "financial guru" (going on my third decade - which made #48 particularly entertaining for me) and I can tell you that I don't think I've ever met a financial planner/advisor who would counsel borrowing from a 401(k) for vacation spending. I can give you any number of links from professionals in the industry saying this is a mistake.

 

But note that this does not mean that you're making the wrong decision... it is still your money and you are still the only one in a position to judge. It's just that it's "wrong" a high enough percentage of the time that well-meaning people who care should warn you about the possible danger. It's what friends do for friends. Then you walk into the decision with your eyes open. If you weigh the pros and cons and decide together to move in one direction... more power to you and best of luck.

 

Look at the economic situation being debated re: the economy. Yes there were some "banks" (mostly mortgage brokers actually) who made some horrible lending decisions (and I say that working for one of the handful that didn't and that remains profitible and growing today)... but there were also millions upon millions of people who borrowed more than they could actually afford to paid more for homes than they were actually worth.

 

It was their money and they could qualify for the loans... but don't you think that they now wish there were a few more "judgmental" people warning them that it was a mistake?

 

Don't take my word for it. Google "when is it ok to borrow from your 401(k)" or "401(k) loans are hazardous to your wealth" or just "borrow from your 401(k)"

 

As I said in the beginning... there are cases where is can make sense, but you'll find that they're quite rare. There are also cases where people knowingly make decisions that "don't make sense" but the tradeoff is worth it to them. Maybe you would rather retire a year later in exchange for having more memories of your 1st year of marriage. If my wife had six months to live I might quit my job and spend large portions of my retirement funds living that six months to the fullest. It would be a boneheaded move from a financial standpoint, but that's not the only factor to consider. If you're finishing graduate school and expect your income to double next year, there are plenty of expenses that you can't "afford" on today's income that you might decide to do anyway.

 

There are loads of factors beyond the financial that only you can know about... but it's reasonable for others to warn you that the financial portion of the decision is usually a mistake.

[MrPete]

ie 4% (or whatever you pay) on the 401k loan vs 12% - 20% or even more on a credit card. No brainer

 

Both are dumb ideas. If one doesn't have the money, one should not cruise.

[luv2c00k]

Well... I am a "financial guru" (going on my third decade - which made #48 particularly entertaining for me) and I can tell you that I don't think I've ever met a financial planner/advisor who would counsel borrowing from a 401(k) for vacation spending. I can give you any number of links from professionals in the industry saying this is a mistake.

 

But note that this does not mean that you're making the wrong decision... it is still your money and you are still the only one in a position to judge. It's just that it's "wrong" a high enough percentage of the time that well-meaning people who care should warn you about the possible danger. It's what friends do for friends. Then you walk into the decision with your eyes open. If you weigh the pros and cons and decide together to move in one direction... more power to you and best of luck.

 

Look at the economic situation being debated re: the economy. Yes there were some "banks" (mostly mortgage brokers actually) who made some horrible lending decisions (and I say that working for one of the handful that didn't and that remains profitible and growing today)... but there were also millions upon millions of people who borrowed more than they could actually afford to paid more for homes than they were actually worth.

 

It was their money and they could qualify for the loans... but don't you think that they now wish there were a few more "judgmental" people warning them that it was a mistake?

 

Don't take my word for it. Google "when is it ok to borrow from your 401(k)" or "401(k) loans are hazardous to your wealth" or just "borrow from your 401(k)"

 

As I said in the beginning... there are cases where is can make sense, but you'll find that they're quite rare. There are also cases where people knowingly make decisions that "don't make sense" but the tradeoff is worth it to them. Maybe you would rather retire a year later in exchange for having more memories of your 1st year of marriage. If my wife had six months to live I might quit my job and spend large portions of my retirement funds living that six months to the fullest. It would be a boneheaded move from a financial standpoint, but that's not the only factor to consider. If you're finishing graduate school and expect your income to double next year, there are plenty of expenses that you can't "afford" on today's income that you might decide to do anyway.

 

There are loads of factors beyond the financial that only you can know about... but it's reasonable for others to warn you that the financial portion of the decision is usually a mistake.

 

 

Well said!

[erdoran]

Both are dumb ideas. If one doesn't have the money, one should not cruise.

 

agreed....I was not addressing whether or not OP "should" cruise, just trying to get a point across fairly inoffensively, so looking only at the financial transaction, not how the proceeds were to be spent.

[BIG_Steve]

Clearly, a few just wanted to take part in another peck party. Sure, the OP supplied background info. But it was because she felt she had to explain the reason for the short DELAY. Why? Because I assume she felt she would get the third degree about what possible reason could there be a delay?

 

Her mistake was letting some private info out that could be pounced on.

 

LOL some of you folks need a cruise. (But not mine, please.....)

[jdpudge]

Clearly, a few just wanted to take part in another peck party.

 

Of course... It's just got to be people who think they're "better than" everyone else who need to knock others down to make themselves feel superior. It's not possible that people with useful information that another member might benefit from were willing to share it out of genuine concern for another human being.

[BIG_Steve]

Of course... It's just got to be people who think they're "better than" everyone else who need to knock others down to make themselves feel superior. It's not possible that people with useful information that another member might benefit from were willing to share it out of genuine concern for another human being.

 

Anything is possible, but in an electronic discussion board, it's unlikely. If the OP had mentioned this at the lunchroom table. PERHAPS someone would have asked if that was a good idea. But I think most would show restraint and just decide that the OP knew what she was doing, or just mind their own business.

 

In these discussion boards, many of us tend to be highly judgmental. I'll let psychologists figure out why. But I would assume it starts with the relative anonymity we have here, and also not having to temper what is said for fear of being punched in the nose. Or perhaps it's the only time some folks have someone else pay attention to what they say.

 

You decide. But I submit to you that many of the folks who claim to be "just looking out for a friend" would be quiet in the face to face of the real world.

[debnjoe1438]

I certainly won't judge the OP as my personal situation has changed so much in 18 months that I might have to sell my cute little house I thought I'd grow old in. I cry myself to sleep sometimes and I would love to escape away on a cruise if for just a few days... But i am very practical. We all cope in different ways and we do not know her circumstances.

 

Best of luck to you, I hope things turn around for you and millions of others.

[Music City]

Sure they're different topics... but both were examples of you lambasting those who were "judgmental" and then moving right on in to being uber-judgmental.

 

 

 

 

 

I do understand, and I largely agree with you (except in limiting it to that tiny part of the problem). But again, that wasn't the point. It was how ready you were to identify correct/incorrect financial decisions on the part of others and pass judgment on them... all while claiming that others were wrong to do so.

 

Why do I get the feeling you are being very defensive here? Are you a loan officer that bundled a bunch of bad loans and dumped them on the federal government to be paid off by the taxpayers? Are you trying to rationalize your actions to assuage or avoid guilt?

 

The grass roots realities seemed to have struck a nerve with you. Perhaps when the gritty reality of the end result of the lending institutions' cold calculated actions is given to you on a personal level that appears to offend you.

 

But back to the original topic...If I use your "logic" I should not do anything if I have to borrow the money. I should not send my kids to college if I can't pay the tuition is cash. I shoud not have a better car than I can afford to pay for in cash. I should not borrow money to open a business. And of course, the OP should not borrow money to take a delayed honeymoon.

 

Do I have your financial philosophy correct, Pudge?

[Dr. Jack Daniels]

Both are dumb ideas. If one doesn't have the money, one should not cruise.

 

If one is not paying for the cruise then it is none of one's buiness where the money comes from.