Does it make Financial Sense has to borrow from 50 + year equity ...

Question by rolly bear : Does it make Financial Sense at 50 + year to borrow from equity line to help fully fund your 401K?
The interest on the equity line is tax-deductible.At 50 +, you-can fund $ 20.500 for this year. Best answer:
Answer by

jrod57
Wow, that?s a complicated question! It Would it depends Several factoring Including your tax bracket, how the funds Will Be Invested, the interest rate and term on the loan, etc.. To Be truly effective, You Would Need to earn more on the 401 (k) investment Than your tax interest equivalent on the home equity loan.I Would not recommend this. The Biggest Reason, Among Others, is the risk Involved. UNLESS you invest in something That Is 100% Guaranteed (money market accounts, CD?s, etc..) Then you are Potentially risking your retirement savings and Both the equity in your home. It Could Be Illegal aussi to borrow your home equity to invest in securities (or at the very least, something your lender Would frown upon.)I would recommend meeting with a reputable financial planner and tax advisor That Cdn Consider all of your Personal Financial Specific information and make recommendation to Meet A Suitable your retirement goals.

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Source: http://www.lovefinanceinfo.com/2012/03/does-it-make-financial-sense-has-to-borrow-from-50-year-equity-line-to-help-fully-fund-your-401k/?utm_source=rss&utm_medium=rss&utm_campaign=does-it-make-financial-sense-has-to-borrow-from-50-year-equity-line-to-help-fully-fund-your-401k

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