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      01-11-2020, 07:13 AM   #33
gatorfast
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Originally Posted by Run Silent View Post
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Originally Posted by gatorfast View Post
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Originally Posted by Run Silent View Post
My ultimate answer is to cashflow school and pay as you go. It's easier than many people think.

That being said - if that isn't an option for you then do not use the 401(k) and here is why:

1) Aside from the taxes, you will pay a 10% penalty and lose the interest gained if it was still there.
2) Overall, that nets to an interest rate likely to be somewhere around 30%.

Would you borrow money at 30% interest to go to school? I think we all know the answer to that question.

With respect to your comments about no growth - something is wrong. The market has nearly doubled in the last year. Just having it in standard index funds would have netted you a gain of double what you had last year.

You need to make some adjustments in there right away.
Uhh the market has done well over the last year but it most certainly has not doubled...
Fair. It's doubled in the last 4 years. Point still stands.
No it hasn't...

Where are you seeing this? Using the S&P 500 as a benchmark it was ~2,000 in 2016 and is a little over 3,000 today. A roughly 50% increase which is great but far short of a double.
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