- First Name
- Patric
- Joined
- Jul 26, 2020
- Threads
- 8
- Messages
- 168
- Reaction score
- 230
- Location
- Flagstaff az
- Vehicle(s)
- 1994 bronco xlt
- Your Bronco Model
- Badlands
But, let's say for argument, that you don't get the best interest rate (I should, but we will see) and finance 20,000$ at 3% interest, all of a sudden, that extra .25 hours to pay the money to that money back to myself, seems less of a problem to me, when you end up paying a considerable amount of money into interest to the bank.I don't mean to beat you up or anything. You can do whatever you want, but here's an example for anyone else considering doing the same:
You make $25 an hour and your tax rate is 25%
You work 4 hours for a total of $100 and you get to put all of that into your 401k since its pretax funding.
You take out a loan for $100 and now you have to pay it back.
Since you pay it back with after tax funds you have to work roughly 5.25 hours to pay back the $100 you borrowed. Not including any additional interest thats just the principle.
Don't take out loans or touch your 401k unless its an absolute emergency.
Sponsored