Q4 2012 saw a stunning 28% surge in the number of people taking loans from their retirement plans.
While the numbers are scary for younger people, the older generation is taking more loans with 34.2% of those in their 50s and 28.9% of those in their 60s having taken loans from their retirement plans. Yet another example of the 'strength' of the recovery as those with at least one loan outstanding had an average balance in their retirement plan of $7,764
All those boomers that retired early are living it up on their $8,000 retirement accounts. Par-TEE.
Wonder aloud how many people are trying to time these loans to the market top; certainly, you'd think they don't want to sell off on the downturn.
You can't talk about how great the market is and QE has been without embracing that's who benefits. That's why people like me keep pointing out jobs; the market has nothing to do with putting people to work, just putting more billions in these guys' slush funds.
That's the Obama Rally you are so proud of. Bankers rally around Barry. JPM has half a trillion in their slush fund, and we keep giving away what, 46 billion a month to keep that going?
We, and many others here are doing the same thing. We are getting a small loan to do home improvements at a 2 3/4% interest rate. We expect that our investments will gain at a much better rate than that, so the bank loan should be a good deal. Some people will prefer a bank loan, while others will prefer a loan against their 401K. It looks like a sign of an improving economy. If you don't get started ow, carpenters dn home builders will be harder to find, and interest rates must eventually go up, too.
Unlike you, I rather sell stocks than to finance any purchases like cars, home repair, home improvement, student loans and now, with fix income yields near zero, mortgages (I paid off all my loans last year when my bonds matured.) The way I see it, stocks are risky at my age while paying those 3.6% loan interest is a sure loser. Borrowing against 401K is only a good idea when markets/bonds are down and interest rates are high. Not a good alternative in mho as well.