Would you......

lickablebean

Would you take a loan from your 401K to purchase cards? Food for thought!

How many people have done this? Would anyone have enough faith in this hobby to take that chance?

Personally, I haven't done this but feel I might in the near future due to my taste in cards. I have several investments including my 401k and haven't been satisfied with the market as of late. I'm young and have played conservatively with the market to ensure loses are small and gains are respectable. However, a stock certificate doesn't feel the same as a MINT vintage card in hand.

What are your thoughts?

RM

Allen

I wish you would call in to the Suze Orman show and ask her that question just so she would fly off the handle on you. That is a terrible idea.

Bosox1976

I'd keep the two very separate. 401K should exist to ensure you can retire your way, esp. given the cloudy future of Social Security. Max it out, know your risk profile/tolerance, know the fees, and really push it. The momentum in years 20 - 30 (and beyond) of a 401K are breath taking. When you get to the point that your investments generate more money than you put in annually, you will know what I mean - it is nice to have your money work for you.

That said, save for your retirement, for emergencies, for your kids' schooling, for short term goals. Then pay your bills. Then spend the heck out of what ever is left.

"The happiest man in the world spends 90% of what he makes, the most unhappy spends 110%". That 10% swing either way makes a world of difference through compunding. Cards don't compound.

Stingray

Worst idea ever, all the experts (if they really are??) state never ever take a loan from your 401K.

mikeschmidt

That seems a bad idea on so many levels.

Unless, of course, you are planning on investing in wax cases of 1988 Donruss. In that case, I would happily invest alongside you.

lickablebean

I'm kidding!!!!!!!!! However, looking at your 401k Statement can you imagine the field day you could have with cards.

cravetopps

if someone has to take out a loan from their 401K to buy cards, they should take a serious look at their financial situation. and, if their 401K is not performing well in the market we're experiencing right now, I would start with an examination of the 401K portfolio.

Stingray

<< <i>I'm kidding!!!!!!!!! However, looking at your 401k Statement can you imagine the field day you could have with cards. >>



I figured you must have been. Trying to get everyone's blood flowing this morning??

markmac

IF the money is going to stay in an account for over 20 years you should put the majority if not 100% in high risk stocks. You should earn near 9% according to the 90+ years of the market. Compare this to 6% and you will see what I mean. Go buy an investment book and read it cover to cover. Definitely do not take money out to spend on cards. Time is your ally.
ex. Person A invests $100 a month from age 30 to 40 (Invests $10,000) and then stops investing. Person B invests $100 a month from age 40 to 65 ( invests $25000). At age 65, person A will have over $100,000 while person B will be at around $78,000. Now think about your situation if you are in your 20's. If your money remains in "safe" stocks, you will never earn more than 4 to 6 percent. That's why you are not earning much. Don't worry about what your stocks are doing day to day, month to month, or year to year. Worry about what they will do over the next 20 to 30 years.

itzagoner

'bout 20 years ago, when i decided to expand my interests from hobby into dealing, i borrowed funds from the most reliable, safe source i could find......

Mom

lickablebean

RAY - I was hoping to catch someone that had so I could yell at them.

Off to secure my third home equity line for cards. They have free cookies too.

kcballboy

I thought about doing that, but I decided that I would just make an enormous amount of money and pay cash for everything. Including retirement.

It hasn't quite worked out yet, but it's early.

ArchStanton

In 1988, I maxed out all of my credit cards on Sam Horn rookies. I then buried them all in my back yard and declared bankruptcy. My plan was to dig up the cards in 1995 and retire to Argentina. I now work at Blockbuster...but I'm working on a new plan. Anyone heard of Alex Gordon?