Comments on: Should my boyfriend withdraw from his 401k to buy a new car? http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/ Thu, 17 May 2012 21:01:35 +0000 http://wordpress.org/?v=2.7 hourly 1 By: SUSAN M http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/comment-page-1/#comment-1860 SUSAN M Fri, 24 Apr 2009 11:00:46 +0000 http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/#comment-1860 Bad Bad Idea. He will be paying like a 10% penalty plus all the income tax for what he withdraws. Go the the bank or auto dealer and get a loan. It will also help his credit out to have an auto loan. Make the payments on time and in full and his score will go up. Bad Bad Idea. He will be paying like a 10% penalty plus all the income tax for what he withdraws. Go the the bank or auto dealer and get a loan. It will also help his credit out to have an auto loan. Make the payments on time and in full and his score will go up.

]]> By: john P http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/comment-page-1/#comment-1859 john P Wed, 22 Apr 2009 23:58:31 +0000 http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/#comment-1859 401k are for retirement or major life's events like buying a first car, a major medical expense, etc. It's really dumb to withdraw from 401k to buy something like a car. A loan, however, can be an acceptable move if it is paid back in full including the interest gain that would have accumulated had the $$ not been loaned out. 401k are for retirement or major life’s events like buying a first car, a major medical expense, etc. It’s really dumb to withdraw from 401k to buy something like a car.
A loan, however, can be an acceptable move if it is paid back in full including the interest gain that would have accumulated had the $$ not been loaned out.

]]> By: moosl<3 http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/comment-page-1/#comment-1858 moosl<3 Tue, 21 Apr 2009 20:04:04 +0000 http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/#comment-1858 Absolutely not! Absolutely not!

]]> By: skeptical http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/comment-page-1/#comment-1857 skeptical Sun, 19 Apr 2009 02:10:30 +0000 http://www.secretfinance.com/blog/should-my-boyfriend-withdraw-from-his-401k-to-buy-a-new-car/#comment-1857 He should not do either. That will be a VERY expensive car. There are taxes and penalties for withdrawing from a 401k, and borrowing isn't any smarter. He should save up and buy a car that he can afford. Most millionaires don't buy new cars. Why? Because it's stupid! The thing loses 40% of its value the minute you drive off the lot! He should not do either. That will be a VERY expensive car. There are taxes and penalties for withdrawing from a 401k, and borrowing isn’t any smarter.

He should save up and buy a car that he can afford.

Most millionaires don’t buy new cars. Why? Because it’s stupid! The thing loses 40% of its value the minute you drive off the lot!

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