Ice... borrowing from a 401K is propably not the best way to invest. Reason why is because when you borrow from your 401K, that money that would have made money is no longer there to do so.... also, once you borrow from it, you have to repay with after tax dollars, and then when you finally do retire, you get taxed again, hence you are taxed twice for the same money.. I for one, am not a fan of 401K's unless, one does not have a mortgage, like CJ. If one has a mortgage, whats the point of the 401K... but to chase profits, that may or may not come to fruit. I know many say, dont put all your eggs in one basket, but thats when investing... and I think paying down ones mortgage is not investing, but more of a wealth preservation method. Personally, I think paying off a mortgage is more conservative than a 401K, providing a person with more liquidity,(easy access to cash) when needed. Let me give you an example, if you had your house paid off in full, would you borrow against it to put in the stock market, ie. 401K? I sure wouldnt...
