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 · 11-22-2009, 09:01 AM

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

Socal104 · 11-22-2009, 04:20 PM

Love....what can you say. If that's the craziest thing he does over love, he'll be fine. Loans against 401(K) are pretty cheap and he can pay it back anytime. Only real issue I see is that if he changes jobs he has to pay it back pronto.

Everything about a wedding is financially crazy. Where else can you get seemingly rationale men to buy a rock for $7,000, spend $20,000 on a 6 hour party, then splurge another $7K on a 7 day trip, all when they are of very average means. \

Why do you think that the government loves marriage, every time someone gets married, its a huge economic stimulus and then after that the couple needs to work hard at their jobs just to pay it off!

Nothing like starting out marriage up to your eyeballs with debt.

SoCal

singleguymoney · Yesterday, 04:00 PM

I don't understand why people spend so much money on something that may or may not last. If you truly love each other, why do you have to spend so much money to show it? My future spouse should be happy with a very simple, frugal ceremony and maybe a nice honeymoon vacation but that's it.

nkthen · Today, 02:52 AM

Did he took the loan because he wants it or because HIS WIFE-TO-BE wants it?

Either or, I think it's not worth it to take a loan just for wedding!

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: 266 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"

11-22-2009, 04:20 PM	#6
Socal104 Member Join Date: Oct 2009 Posts: 53 Thanks: 1 Thanked 1 Time in 1 Post Reputation: (31)	Love....what can you say. If that's the craziest thing he does over love, he'll be fine. Loans against 401(K) are pretty cheap and he can pay it back anytime. Only real issue I see is that if he changes jobs he has to pay it back pronto. Everything about a wedding is financially crazy. Where else can you get seemingly rationale men to buy a rock for $7,000, spend $20,000 on a 6 hour party, then splurge another $7K on a 7 day trip, all when they are of very average means. \ Why do you think that the government loves marriage, every time someone gets married, its a huge economic stimulus and then after that the couple needs to work hard at their jobs just to pay it off! Nothing like starting out marriage up to your eyeballs with debt. SoCal __________________ www.LiveCheap.com Live the Good Life....Cheaply! Twitter: @livecheapnews Facebook.com/LiveCheap

Yesterday, 04:00 PM	#7
singleguymoney Member Join Date: Jul 2008 Location: Georgia Posts: 88 Thanks: 0 Thanked 2 Times in 2 Posts Reputation: (12)	I don't understand why people spend so much money on something that may or may not last. If you truly love each other, why do you have to spend so much money to show it? My future spouse should be happy with a very simple, frugal ceremony and maybe a nice honeymoon vacation but that's it. __________________ I'm a single guy trying to get out of debt. Visit my personal finance blog @ http://www.singleguymoney.com

Today, 02:52 AM	#8
nkthen Junior Member Join Date: Dec 2008 Posts: 24 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Did he took the loan because he wants it or because HIS WIFE-TO-BE wants it? Either or, I think it's not worth it to take a loan just for wedding! __________________ Personal Finance Tips \| Chapter 7 Exemptions \| Bad Credit Lender \| Bank Foreclosure List

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.

11-22-2009, 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.

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