As with every loan, you spend interest whenever you borrow from your own 401k. Luckily, the attention would go to your very own account, therefore it’s a type of profits for you personally. Many people assume this means borrowing from your own 401k plan is without any any disadvantages — after all, you’re spending yourself rather than some bank that is greedy. Although it’s true that you obtain some reap the benefits of the mortgage, there are additionally downsides. First, you’re using the danger you won’t repay the mortgage. In addition, you lose out on the opportunity to earn much more than you’re spending yourself in interest. The attention price is fairly low (it’s frequently based in the “prime price, […]