I failed...he's taking the loan

BuildMyBudget · 11-02-2009, 10:10 AM

So yesterday I was playing horseshoes and having a few cold beverages with a neighbor and some friends when one of them mentioned he was getting married this coming Saturday. Naturally I congratulated him...being that he is getting married on one of the coolest holidays...but then he mentioned that he had to take out a 401k loan in order to pay for the wedding.

*sigh

What can I say? I did my best to convince him to find some other way to pay for it, but he said this was truly the only option. Very sad indeed that he'll be paying back pretax $ with after-tax $ and paying interest on top of it all.

trustno1 · 11-02-2009, 11:12 PM

How does that saying go??..."love is blind"...lol

TexasNative · 11-03-2009, 01:28 PM

Quote:

Originally Posted by BuildMyBudget

What can I say? I did my best to convince him to find some other way to pay for it, but he said this was truly the only option. Very sad indeed that he'll be paying back pretax $ with after-tax $

He would have to pay after-tax money on any loan he took out.

Quote:

and paying interest on top of it all.

The interest is paid to himself. Which means he is only investing more back into the account. This is totally different than paying interest to another party.

codeyeti · 11-04-2009, 08:25 AM

Weddings are expensive - it sounds like this was important to him. As long as he feels it was worth it to take out a loan from his 401k then all is well.

Walter224 · Today, 09:01 AM

It happens like that sometimes.Call it one of "those" things.

11-02-2009, 10:10 AM	#1
BuildMyBudget Junior Member Join Date: Oct 2009 Posts: 17 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	I failed...he's taking the loan So yesterday I was playing horseshoes and having a few cold beverages with a neighbor and some friends when one of them mentioned he was getting married this coming Saturday. Naturally I congratulated him...being that he is getting married on one of the coolest holidays...but then he mentioned that he had to take out a 401k loan in order to pay for the wedding. *sigh What can I say? I did my best to convince him to find some other way to pay for it, but he said this was truly the only option. Very sad indeed that he'll be paying back pretax $ with after-tax $ and paying interest on top of it all. __________________ Wouldn't you rather know where you are headed financially? www.BuildMyBudget.com Free $25 Gift Card

11-02-2009, 11:12 PM	#2
trustno1 Senior Member Join Date: Jul 2009 Location: Rocky Mtns, Colorado, USA, Earth Posts: 263 Thanks: 0 Thanked 11 Times in 9 Posts Reputation: (26)	How does that saying go??..."love is blind"...lol __________________ "Think Less, Act More...Life is Short"

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11-04-2009, 08:25 AM	#4
codeyeti Member Join Date: Oct 2009 Location: Atlanta Posts: 31 Thanks: 0 Thanked 2 Times in 2 Posts Reputation: (12)	Weddings are expensive - it sounds like this was important to him. As long as he feels it was worth it to take out a loan from his 401k then all is well.

Today, 09:01 AM	#5
Walter224 Junior Member Join Date: Nov 2009 Posts: 6 Thanks: 12 Thanked 0 Times in 0 Posts Reputation: (10)	It happens like that sometimes.Call it one of "those" things.