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Thanks for posting this. Read 40 pages at lunch today as I found a pdf online (I'm frugal :lmao: )

Can't wait to get back to it.

I also used the library, and then decided to find a pdf copy to refer back to. RIP Thomas Stanley. I read a few other of his works, but nothing was quite as poignant as that title.

The guy was a key figure in getting you to be a lock to be rich and retire early and you couldn't throw his estate a nickel by buying his $10 book?

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Well, today we paid off the last 22 years of our mortgage.  We sold/closed our investment property last week that we bought in 2013.  We did well on it and rolled that money up with some savings and p

Can't really talk about it with RL friends and most of it is pre-tax, but sat down with the wife and figured out that the household is officially in the two comma club. Ten years ago I was unemployed

My big win was in getting educated on personal finance, getting organized, and making a plan. Details: 1. Learned the value of an HSA and contributed for 2019 and 2020. 2. Got my wife’s

Thanks for posting this. Read 40 pages at lunch today as I found a pdf online (I'm frugal :lmao: )

Can't wait to get back to it.

I also used the library, and then decided to find a pdf copy to refer back to. RIP Thomas Stanley. I read a few other of his works, but nothing was quite as poignant as that title.

The guy was a key figure in getting you to be a lock to be rich and retire early and you couldn't throw his estate a nickel by buying his $10 book?

Pretty sure the ghost of Thomas Stanley would be applauding my resourcefulness.

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I haven't found a blog / forum / anything that was as impactful as Millionaire Next Door. I also really liked Random Walk Down Wall Street to put in perspective how many bad investments there are which are being sold / promoted.

Library is free, just a matter of free time and interest. If you already have everything you need than you're set.

:goodposting:

Millionaire Next Door was not one of the first 8-10 personal finance books I read, but it was the one that resonated with me the most. It's one of only 2 personal finance books I've re-read - the other being Jim Cramer's Stay Mad for Life (only the first 2/3rds of the book before he starts making mutual fund/stock picks).

MND is the book I think of every single time when i'm criticized either in real life or on these forums for being cheap. That cheapness is why I'm a near lock to be rich and able to retire early someday.. and retire into a luxurious retirement rather than a social security infused craptirement.

This imo, is an interesting yet personal decision we should make for ourselves early in life. Where each person falls on the balance of investing for the future vs spending money to enjoy the present and giving to charity is a key decision we need to make and educate ourselves. As long as your decision is right for you, it isn't wrong -other than the extremes which can negatively affect others.

Your choice works for you, which everyone should respect.

It's not black or white. You can still "live in the now" and "save for the future".

sure. hence my comment including "balance".

Point being, you should decide your priorities and try to live accordingly. Dentist seems to have done that, regardless of the #### he gets from people sometimes.

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I Will Teach You to Be Rich - Is this going to be a good book for a late 30's couple that is already pretty well established as far as budgeting, saving, and investing? Worried this might be a little remedial for us but I'm always up for a refresher/reminder and its probably the most likely to keep the wife's attention.

The Little Book of Common Sense Investing - Worried this one will lose/bore the wife. And I'm already sold on low cost index funds.

One Up On Wall Street - This is only 2 hours long, which is cool, but we have a lot more time than this to fill.

Is there anythig MNDish? I honestly re listen to that every once in a while just to keep things in check. I think we are looking for something more personal finance than investing.

What about the Steve Jobs book? Is it worth a listen?

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I Will Teach You to Be Rich - Is this going to be a good book for a late 30's couple that is already pretty well established as far as budgeting, saving, and investing? Worried this might be a little remedial for us but I'm always up for a refresher/reminder and its probably the most likely to keep the wife's attention.

The Little Book of Common Sense Investing - Worried this one will lose/bore the wife. And I'm already sold on low cost index funds.

One Up On Wall Street - This is only 2 hours long, which is cool, but we have a lot more time than this to fill.

Is there anythig MNDish? I honestly re listen to that every once in a while just to keep things in check.

What about the Steve Jobs book? Is it worth a listen?

I read the little book about a decade ago, still have the book but haven't looked at it recently. I remember it had a minor impact on my views, but don't remember much about it. It's a short read.

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I Will Teach You to Be Rich - Is this going to be a good book for a late 30's couple that is already pretty well established as far as budgeting, saving, and investing? Worried this might be a little remedial for us but I'm always up for a refresher/reminder and its probably the most likely to keep the wife's attention.

The Little Book of Common Sense Investing - Worried this one will lose/bore the wife. And I'm already sold on low cost index funds.

One Up On Wall Street - This is only 2 hours long, which is cool, but we have a lot more time than this to fill.

Is there anythig MNDish? I honestly re listen to that every once in a while just to keep things in check. I think we are looking for something more personal finance than investing.

What about the Steve Jobs book? Is it worth a listen?

Didn't know you had to entertain the wife. I'd pass on all those suggestions

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I Will Teach You to Be Rich - Is this going to be a good book for a late 30's couple that is already pretty well established as far as budgeting, saving, and investing? Worried this might be a little remedial for us but I'm always up for a refresher/reminder and its probably the most likely to keep the wife's attention.

The Little Book of Common Sense Investing - Worried this one will lose/bore the wife. And I'm already sold on low cost index funds.

One Up On Wall Street - This is only 2 hours long, which is cool, but we have a lot more time than this to fill.

Is there anythig MNDish? I honestly re listen to that every once in a while just to keep things in check. I think we are looking for something more personal finance than investing.

What about the Steve Jobs book? Is it worth a listen?

some of it is remedial, but I think there's more benefit than not

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speaking of personal finance books, anyone read anything that's for people that are way beyond the basics... a personal finance book for higher net worth individuals?

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speaking of personal finance books, anyone read anything that's for people that are way beyond the basics... a personal finance book for higher net worth individuals?

In all honesty, I assume the top (let's say 10%) tier folks have a CFP type on the rolls taking care of their money. A level of money where even if an older money family is in higher cost funds, the level of principal is so high it's not making an impact on their lives.

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speaking of personal finance books, anyone read anything that's for people that are way beyond the basics... a personal finance book for higher net worth individuals?

In all honesty, I assume the top (let's say 10%) tier folks have a CFP type on the rolls taking care of their money. A level of money where even if an older money family is in higher cost funds, the level of principal is so high it's not making an impact on their lives.

maybe. I'm not a top 10% net worth guy, but I'm in charge of a pretty solid chunk of dough.

The only thing I've found for me is the whitecoatinvestor.com which is a PF site catering to doctors.. but 8/10 of the articles would apply to anyone with a six figure income.

They definitely deal with a lot more esoteric issues than just IRA's and 401K's and dave ramsey/suze orman stuff who are preaching to people making < 60k a year or who are really stupid with their money.

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speaking of personal finance books, anyone read anything that's for people that are way beyond the basics... a personal finance book for higher net worth individuals?

In all honesty, I assume the top (let's say 10%) tier folks have a CFP type on the rolls taking care of their money. A level of money where even if an older money family is in higher cost funds, the level of principal is so high it's not making an impact on their lives.

maybe. I'm not a top 10% net worth guy, but I'm in charge of a pretty solid chunk of dough.

The only thing I've found for me is the whitecoatinvestor.com which is a PF site catering to doctors.. but 8/10 of the articles would apply to anyone with a six figure income.

They definitely deal with a lot more esoteric issues than just IRA's and 401K's and dave ramsey/suze orman stuff who are preaching to people making < 60k a year or who are really stupid with their money.

:blackdot:

Reading Ramsey/Orman feels kind of remedial for me. I'm not well above the "white coat" threshold or wear a white coat at work, but it can't hurt to start reading stuff on there to see what tips/strategies are out there for people who already manage their money "well" to a certain degree.

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Hey all, need some wisdom imparted on me. I recently accepted a new job and will be starting July 1st. I have a SEP IRA (small American Funds account, Qualified, about 5k in it) with my current employer. New employer does not yet offer a retirement account and I want to be sure to follow proper timing and limit unnecessary expenses in this transition. Any recommendations or pitfalls to avoid? I'm thinking of just opening an IRA with Vanguard and rolling it over... just looking for some insight here. I currently have a Vanguard index fund that I've been pumping funds into but it's not a retirement account. In my early 30's and do not need liquidity. Thanks!

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Hey all, need some wisdom imparted on me. I recently accepted a new job and will be starting July 1st. I have a SEP IRA (small American Funds account, Qualified, about 5k in it) with my current employer. New employer does not yet offer a retirement account and I want to be sure to follow proper timing and limit unnecessary expenses in this transition. Any recommendations or pitfalls to avoid? I'm thinking of just opening an IRA with Vanguard and rolling it over..

I've opted to move 401(k)s when I left a job to Vanguard IRA even though new employers did have plans I could have moved it to. I didn't see a reason to give them my money and you will usually have more choices that way. IIRC, you have sixty days if SEP has same rules. Vanguard will handle it all.Don't withdraw the cash yourself.

https://investor.vanguard.com/401k-rollover/

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Not sure if this is the proper place for these, but I learned two interesting tax breaks this week.

1) If one member of a household is on a "high deductible health plan" (HDHP) they may contribute to a health savings account (HSA) if they wish. If they are the only person in the HDHP, meaning other family members are on a different, non-HDHP plan, then that person is limited to the contribution amount into the HSA. That limit for an individual this year is 3,350. You may have already known that. What you may not have known is that the money in the HSA can be used for any medical expenses for anyone in the family (who share a tax filing). That means that I, who has a HDHP and an HSA can pay out of pocket medical expenses for my spouse or children with money from the HSA.

2) A husband and wife can easy establish a 529 plan for each child, and each can enjoy the tax break (if your state has one). My state has a 4,000 maximum deduction for 529 contributions. So this means that both my wife and I can each establish a 529 plan for a child, contribute 4k into each, and in total we can deduct 8k from our state income taxes. If we had 2 kids we could do this twice over and contribute up to 16k per year and enjoy the full deduction in that year.

Sorry if you already knew these.

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This is sad...

http://www.nbc-2.com/story/29389675/teachers-may-be-forced-into-pay-day-loans-after-missed-paycheck#.VYnxy3_rUqE.google

LEE COUNTY - Imagine if you didn't receive a normally routine paycheck? That happened to some Lee County teachers with little notice.

Now the school board is expected to discuss options on how to help out. Many found out about this at the last minute and teachers are scrambling to figure out how they'll get through the summer.

It's simple math, five paychecks, in a lump sum at the end of the school year, to get teachers through the summer. But for some Lee teachers something's not adding up.

Lisa Hefner is a Lee School teacher and says “it's been a complete surprise and a rather alarming and concerning one.”

Teachers are usually back to work by August 15th so that pay period is included in the summer lump sum. A state mandated scheduling change means they'll start later next year - and that check is missing - because they won't be back to work yet.

Teachers weren't warned by their own union representation or the District until a May 8th letter was sent out. Board members are now discussing pay day loans.

Facebook posts from TALC Union President Mark Castellano show interest rates could range from 10 percent to 24 percent.

Hefner says of the pay loans “if my choices are not paying my bills in the middle of August and taking a loan, I'm going to be forced to take the loan.”

District leaders declined to be interviewed for this report but say teachers received their full contracted pay throughout the year.

The District was forced by a state law to change the schedule – it was not done on their own accord.

Board members also declined to speak with us before Tuesday's meeting where a vote on pay day loan help could take place. To see the letter sent to teachers and other District employees, click here.

For Christ's sake, you're a ####### teacher. Have enough common sense to have at least a little bit of savings. Payday loans? Really?

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Not sure if this is the proper place for these, but I learned two interesting tax breaks this week.

1) If one member of a household is on a "high deductible health plan" (HDHP) they may contribute to a health savings account (HSA) if they wish. If they are the only person in the HDHP, meaning other family members are on a different, non-HDHP plan, then that person is limited to the contribution amount into the HSA. That limit for an individual this year is 3,350. You may have already known that. What you may not have known is that the money in the HSA can be used for any medical expenses for anyone in the family (who share a tax filing). That means that I, who has a HDHP and an HSA can pay out of pocket medical expenses for my spouse or children with money from the HSA.

2) A husband and wife can easy establish a 529 plan for each child, and each can enjoy the tax break (if your state has one). My state has a 4,000 maximum deduction for 529 contributions. So this means that both my wife and I can each establish a 529 plan for a child, contribute 4k into each, and in total we can deduct 8k from our state income taxes. If we had 2 kids we could do this twice over and contribute up to 16k per year and enjoy the full deduction in that year.

Sorry if you already knew these.

2 - thats great, but how many of us need, want to, and can invest 16k per year in our college funds? With 4 kids that could be 32k for us.

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This is sad...

http://www.nbc-2.com/story/29389675/teachers-may-be-forced-into-pay-day-loans-after-missed-paycheck#.VYnxy3_rUqE.google

LEE COUNTY - Imagine if you didn't receive a normally routine paycheck? That happened to some Lee County teachers with little notice.

Now the school board is expected to discuss options on how to help out. Many found out about this at the last minute and teachers are scrambling to figure out how they'll get through the summer.

It's simple math, five paychecks, in a lump sum at the end of the school year, to get teachers through the summer. But for some Lee teachers something's not adding up.

Lisa Hefner is a Lee School teacher and says “it's been a complete surprise and a rather alarming and concerning one.”

Teachers are usually back to work by August 15th so that pay period is included in the summer lump sum. A state mandated scheduling change means they'll start later next year - and that check is missing - because they won't be back to work yet.

Teachers weren't warned by their own union representation or the District until a May 8th letter was sent out. Board members are now discussing pay day loans.

Facebook posts from TALC Union President Mark Castellano show interest rates could range from 10 percent to 24 percent.

Hefner says of the pay loans “if my choices are not paying my bills in the middle of August and taking a loan, I'm going to be forced to take the loan.”

District leaders declined to be interviewed for this report but say teachers received their full contracted pay throughout the year.

The District was forced by a state law to change the schedule – it was not done on their own accord.

Board members also declined to speak with us before Tuesday's meeting where a vote on pay day loan help could take place. To see the letter sent to teachers and other District employees, click here.

For Christ's sake, you're a ####### teacher. Have enough common sense to have at least a little bit of savings. Payday loans? Really?

Sad yes. Surprising? No.

Most people are stupid with money.

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This is sad...

http://www.nbc-2.com/story/29389675/teachers-may-be-forced-into-pay-day-loans-after-missed-paycheck#.VYnxy3_rUqE.google

LEE COUNTY - Imagine if you didn't receive a normally routine paycheck? That happened to some Lee County teachers with little notice.

Now the school board is expected to discuss options on how to help out. Many found out about this at the last minute and teachers are scrambling to figure out how they'll get through the summer.

It's simple math, five paychecks, in a lump sum at the end of the school year, to get teachers through the summer. But for some Lee teachers something's not adding up.

Lisa Hefner is a Lee School teacher and says it's been a complete surprise and a rather alarming and concerning one.

Teachers are usually back to work by August 15th so that pay period is included in the summer lump sum. A state mandated scheduling change means they'll start later next year - and that check is missing - because they won't be back to work yet.

Teachers weren't warned by their own union representation or the District until a May 8th letter was sent out. Board members are now discussing pay day loans.

Facebook posts from TALC Union President Mark Castellano show interest rates could range from 10 percent to 24 percent.

Hefner says of the pay loans if my choices are not paying my bills in the middle of August and taking a loan, I'm going to be forced to take the loan.

District leaders declined to be interviewed for this report but say teachers received their full contracted pay throughout the year.

The District was forced by a state law to change the schedule it was not done on their own accord.

Board members also declined to speak with us before Tuesday's meeting where a vote on pay day loan help could take place. To see the letter sent to teachers and other District employees, click here.

For Christ's sake, you're a ####### teacher. Have enough common sense to have at least a little bit of savings. Payday loans? Really?

Doesn't matter the intelligence levels, doctor, teacher, or nba player. Mass quantities of people simply don't save a penny and any bump in the road causes a major stumble.

Discipline is hard.

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Not sure if this is the proper place for these, but I learned two interesting tax breaks this week.

1) If one member of a household is on a "high deductible health plan" (HDHP) they may contribute to a health savings account (HSA) if they wish. If they are the only person in the HDHP, meaning other family members are on a different, non-HDHP plan, then that person is limited to the contribution amount into the HSA. That limit for an individual this year is 3,350. You may have already known that. What you may not have known is that the money in the HSA can be used for any medical expenses for anyone in the family (who share a tax filing). That means that I, who has a HDHP and an HSA can pay out of pocket medical expenses for my spouse or children with money from the HSA.

2) A husband and wife can easy establish a 529 plan for each child, and each can enjoy the tax break (if your state has one). My state has a 4,000 maximum deduction for 529 contributions. So this means that both my wife and I can each establish a 529 plan for a child, contribute 4k into each, and in total we can deduct 8k from our state income taxes. If we had 2 kids we could do this twice over and contribute up to 16k per year and enjoy the full deduction in that year.

Sorry if you already knew these.

2 - thats great, but how many of us need, want to, and can invest 16k per year in our college funds? With 4 kids that could be 32k for us.

2 is a great tip. Took me a while to figure out you could do that in VA last year but it ended up allowing us to save a decent chunk of change on our tax bill. Just one kid here though.

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Hey all, need some wisdom imparted on me. I recently accepted a new job and will be starting July 1st. I have a SEP IRA (small American Funds account, Qualified, about 5k in it) with my current employer. New employer does not yet offer a retirement account and I want to be sure to follow proper timing and limit unnecessary expenses in this transition. Any recommendations or pitfalls to avoid? I'm thinking of just opening an IRA with Vanguard and rolling it over... just looking for some insight here. I currently have a Vanguard index fund that I've been pumping funds into but it's not a retirement account. In my early 30's and do not need liquidity. Thanks!

Congrats on the new gig.

The rollover is the way to go and Vanguard is a great option.

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What is your personal interest rate cutoff point where you would consider taking a loan from your 403b or 401k to buy a car?

For my 403b I have to pay interest, but I pay it to myself right back into my account.

I looked up a $20,000 loan and all the total fees are somewhere around like $150-200 total for a 5 year repayment, with obviously no actual interest being paid to anyone else.

So when you are taking out a loan for a car, what rate cutoff point would make you consider this?

(oh, and no need to reference all that we talked about before, my money is back in the S&P. If I had planned to just keep that money in the money market, it would be a no brainer to take the loan from the 403b)

I am leaning towards doing the 403b loan at the moment. Not like it's a huge amount of money anyway, plus it can just be viewed as a diversification of assetts I suppose.

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What is your personal interest rate cutoff point where you would consider taking a loan from your 403b or 401k to buy a car?

For my 403b I have to pay interest, but I pay it to myself right back into my account.

I looked up a $20,000 loan and all the total fees are somewhere around like $150-200 total for a 5 year repayment, with obviously no actual interest being paid to anyone else.

So when you are taking out a loan for a car, what rate cutoff point would make you consider this?

(oh, and no need to reference all that we talked about before, my money is back in the S&P. If I had planned to just keep that money in the money market, it would be a no brainer to take the loan from the 403b)

I am leaning towards doing the 403b loan at the moment. Not like it's a huge amount of money anyway, plus it can just be viewed as a diversification of assetts I suppose.

The loaned money comes out of your investment. Compare the historical annual return of the S&P 500 to current car loan rates.

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The loaned money comes out of your investment. Compare the historical annual return of the S&P 500 to current car loan rates.

Again, I am asking for other people's personal cutoff points here.

And also, as I said, say the interest rate is 5% on the car loan. It's a small diversification of investments with a 5% return. Of course it is lower than the historical annual return. It's also not a huge amount of money.

I would imagine there are some different answers based on personal opinion other than just saying "what is the historical annual return".

It could obviously go both ways. Could work in my favor, or I could have missed out on some earnings. But I do know it's a 5% return.

Didn't Dentist have a whole thread with a question similar to that in regards to paying off his house? I remember a lot of differing opinions on that one. But here, was just wondering what % cutoff point people would go for the 403b loan.

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I'm a conservative investor, so there's pretty much no way I'd take a 401k or 403b loan to buy a car. I don't like the idea of borrowing against my retirement for something that is not an absolute necessity like a major medical expense or something crazy like that. I suppose if the rate was absurdly low, but 5% is not sufficiently low enough for me. That's my personal opinion.

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I'm a conservative investor, so there's pretty much no way I'd take a 401k or 403b loan to buy a car. I don't like the idea of borrowing against my retirement for something that is not an absolute necessity like a major medical expense or something crazy like that. I suppose if the rate was absurdly low, but 5% is not sufficiently low enough for me. That's my personal opinion.

Low?? You mean high??

If I take a 403b loan I technically do not pay interest. The interest I pay goes right back into the account. I am not even sure what interest rate I would get from an outside source for a car loan, I haven't checked yet.

If you are conservative investor this seems like something you WOULD do...........

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The loaned money comes out of your investment. Compare the historical annual return of the S&P 500 to current car loan rates.

Again, I am asking for other people's personal cutoff points here.

And also, as I said, say the interest rate is 5% on the car loan. It's a small diversification of investments with a 5% return. Of course it is lower than the historical annual return. It's also not a huge amount of money.

I would imagine there are some different answers based on personal opinion other than just saying "what is the historical annual return".

It could obviously go both ways. Could work in my favor, or I could have missed out on some earnings. But I do know it's a 5% return.

Didn't Dentist have a whole thread with a question similar to that in regards to paying off his house? I remember a lot of differing opinions on that one. But here, was just wondering what % cutoff point people would go for the 403b loan.

There's no 5% return if you're paying the 5%.

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What is your personal interest rate cutoff point where you would consider taking a loan from your 403b or 401k to buy a car?

For my 403b I have to pay interest, but I pay it to myself right back into my account.

I looked up a $20,000 loan and all the total fees are somewhere around like $150-200 total for a 5 year repayment, with obviously no actual interest being paid to anyone else.

So when you are taking out a loan for a car, what rate cutoff point would make you consider this?

(oh, and no need to reference all that we talked about before, my money is back in the S&P. If I had planned to just keep that money in the money market, it would be a no brainer to take the loan from the 403b)

I am leaning towards doing the 403b loan at the moment. Not like it's a huge amount of money anyway, plus it can just be viewed as a diversification of assetts I suppose.

All signs point to no IMO.

How's your credit? What kind of car are you getting. I know Honda gives like .9% or something

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I'm a conservative investor, so there's pretty much no way I'd take a 401k or 403b loan to buy a car. I don't like the idea of borrowing against my retirement for something that is not an absolute necessity like a major medical expense or something crazy like that. I suppose if the rate was absurdly low, but 5% is not sufficiently low enough for me. That's my personal opinion.

Low?? You mean high??

If I take a 403b loan I technically do not pay interest. The interest I pay goes right back into the account. I am not even sure what interest rate I would get from an outside source for a car loan, I haven't checked yet.

If you are conservative investor this seems like something you WOULD do...........

It's been a long day.

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The loaned money comes out of your investment. Compare the historical annual return of the S&P 500 to current car loan rates.

Again, I am asking for other people's personal cutoff points here.

And also, as I said, say the interest rate is 5% on the car loan. It's a small diversification of investments with a 5% return. Of course it is lower than the historical annual return. It's also not a huge amount of money.

I would imagine there are some different answers based on personal opinion other than just saying "what is the historical annual return".

It could obviously go both ways. Could work in my favor, or I could have missed out on some earnings. But I do know it's a 5% return.

Didn't Dentist have a whole thread with a question similar to that in regards to paying off his house? I remember a lot of differing opinions on that one. But here, was just wondering what % cutoff point people would go for the 403b loan.

There's no 5% return if you're paying the 5%.

My 403b loan interest rate is 4%. I pay this back to myself each month.

The 5% return would be if a car loan through a different source charged 5% interest, since I would NOT be paying that if I used the 403b loan where I technically pay ZERO interest.

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All signs point to no IMO.

How's your credit? What kind of car are you getting. I know Honda gives like .9% or something

This is why I am asking for people's personal cutoff points..............

Obviously if a car loan from someone is low I would go that route. I don't know what the loan will be, I have not checked yet. I havent taken a car loan since 2004, so I have no idea what rates are for this.

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If your credit is fine, you should be able to find rates around 3% or lower. Bankrate is showing an average between 2.88% and 3.21% depending on term.

We'll see what it is. I know I have a few recent hard inquiries and just bought a house, but yeah, if it is 3%, I would go that route.

My personal cutoff was maybe something around 5% where I would strongly think about using the 403b.

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Remember if you can't pay for your car in three years or less you're buying too much car.

The 5 and 7 year auto loans are devastating for the consumer but now 5 is the most common and it's rare to see people do 3.

I personally won't ever do a car loan again. One was enough. 3 year loan I paid in 18mo

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Remember if you can't pay for your car in three years or less you're buying too much car.

The 5 and 7 year auto loans are devastating for the consumer but now 5 is the most common and it's rare to see people do 3.

I personally won't ever do a car loan again. One was enough. 3 year loan I paid in 18mo

Wouldnt a lot of this depend on the interest rate and of course your own personal financial standing?

I could pay for a car right now out of my savings, but I didn't want to deplete my savings.

It seems a lot of people in here would take the longest possible loan they could if the interest rate was low enough, and keep contributing the extra to their retirement funds. I would not be in favor of that. I also like having things paid off, but I also do not want to deplete the savings ya know.

Edited by ghostguy123
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Remember if you can't pay for your car in three years or less you're buying too much car.

The 5 and 7 year auto loans are devastating for the consumer but now 5 is the most common and it's rare to see people do 3.

I personally won't ever do a car loan again. One was enough. 3 year loan I paid in 18mo

Wouldnt a lot of this depend on the interest rate and of course your own personal financial standing?

I could pay for a car right now out of my savings, but I didn't want to deplete my savings.

It seems a lot of people in here would take the longest possible loan they could if the interest rate was low enough, and keep contributing the extra to their retirement funds. I would not be in favor of that. I also like having things paid off, but I also do not want to deplete the savings ya know.

On a home I can understand having the 30 year loan and not paying it of, that assert isn't plummeting in value like a car.

On a car just like any other consumer item, you want it off your ledger sheet fast.

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Credit unions are good for car loans. I'd explore those options before loaning against retirement funds.

Agreed, agreed, agreed.

Is anyone able to actually answer the original question of "how high would the interest rate have to be from another source for you to consider using your 403b for a car loan. Mind you the 403b loan is technically interest free since any interest paid goes directly back into the 403b account?"

4%??

7%??

10%???

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Credit unions are good for car loans. I'd explore those options before loaning against retirement funds.

Agreed, agreed, agreed.

Is anyone able to actually answer the original question of "how high would the interest rate have to be from another source for you to consider using your 403b for a car loan. Mind you the 403b loan is technically interest free since any interest paid goes directly back into the 403b account?"

4%??

7%??

10%???

I have no debt but with where rates are today, I wouldn't consider borrowing over 3 or 4 percent. Edited by Juxtatarot
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Credit unions are good for car loans. I'd explore those options before loaning against retirement funds.

Agreed, agreed, agreed.

Is anyone able to actually answer the original question of "how high would the interest rate have to be from another source for you to consider using your 403b for a car loan. Mind you the 403b loan is technically interest free since any interest paid goes directly back into the 403b account?"

4%??

7%??

10%???

I have no debt but with where rates are today, I wouldn't consider borrowing over 3 or 4 percent.

Borrowing from????????? 403b or outside source? Or just borrowing in general?

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Credit unions are good for car loans. I'd explore those options before loaning against retirement funds.

Agreed, agreed, agreed.

Is anyone able to actually answer the original question of "how high would the interest rate have to be from another source for you to consider using your 403b for a car loan. Mind you the 403b loan is technically interest free since any interest paid goes directly back into the 403b account?"

4%??

7%??

10%???

I have no debt but with where rates are today, I wouldn't consider borrowing over 3 or 4 percent.

Borrowing from????????? 403b or outside source? Or just borrowing in general?

Outside. 401K loan isn't a consideration because I expect to earn more than 3 or 4 percent on average on investments. Paying myself interest on a 401k loan isn't a factor at all since it's coming out of my pocket.

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Borrowing from????????? 403b or outside source? Or just borrowing in general?

Outside. 401K loan isn't a consideration because I expect to earn more than 3 or 4 percent on average on investments. Paying myself interest on a 401k loan isn't a factor at all since it's coming out of my pocket.

It just means it is an interest free loan.

I guess one downside to that is that the interest you pay pack is after tax money, so then it gets taxed a second time whenever you withdraw. Also something to think about (assuming I am correct on that).

One other issue that is a factor here is the car that I buy. If I want to buy a used car for say $10,000 will I be able to get a conventional car loan to buy a used car from a private party? If not, I would rather take 10 grand loan out of my 403b than pay 12-13 grand taking out a loan for some car dealership and their inflated prices.

Again, I havent taken a car loan in like 11 years, so not sure if they do loans like that if buying a used car from a private party.

Another thing. If you need a car, but are unwilling to take out a loan, whilst not wanting to deplete your savings...........sounds like a bit of a conundrum.

Edited by ghostguy123
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Credit unions are good for car loans. I'd explore those options before loaning against retirement funds.

Agreed, agreed, agreed.

Is anyone able to actually answer the original question of "how high would the interest rate have to be from another source for you to consider using your 403b for a car loan. Mind you the 403b loan is technically interest free since any interest paid goes directly back into the 403b account?"

4%??

7%??

10%???

:shrug: the only reason I'd take on debt at this point is if I'm willing to bet the market will return better than I'm paying.

As I'm willing to assume 6% gain in the market, any loan over 6% I would not take.

But, I'd pay cash before taking a 403b loan.

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