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401K Power Play

FFA

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#1
I wasnt sure if this the right place to put this. Mods please move if needed.

So anyways, I have a small loan against my 401k. Roughly $2400. I'm thinking about dumping some silver to pay it off. After I pay it off I might take out another and snatch about 10k in silver.

The loan is through my plan and 5.7% interest and it automatically come out of.my pay ever week and so I dont even notice it.

I also am basically hedging my 401k with silver.

It will take me about 3 weeks to pay the old lone off and get the check from the new loan in the bank.

I would then make a 10k silver purchase.

My concern is time. I afraid to sell the silver to pay off the small loan. I'm afraid the price will shoot up before I the check from the new loan in the bank.

Any thoughts? Should I try to pull this off before the price runs or just hold what I got?
 

Fatrat

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#4
If I wanted to do something like this, I'd get a promotional 0% credit card and buy only what I could pay off in 10 months. Leave some wriggle room.
 

edsl48

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#5
You are basically buying on margin secured with what should be one of your most valuable financial assets, your retirement fund. I,as a very old timer would say, "someday sooner or later you will need that fund." I would recommend a more diversified approach instead of a bet on silver but that's me...someone living on previous savings now in retirement looking back with hindsight.
 

EO 11110

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#6
you could buy one of the paper silver products and hold it for that time period that you're worried about. credit card zero percent offer would provide the funds...with 3 percent fee

does the 401k allow stock purchases? that would work

or you have a brokerage account outside of the 401k? that's where money beyond the 401k company match should go -- into an ira or roth ira brokerage account
 
Last edited:

FFA

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#8
I have the money to cover the 10k. Also, I have been do this for awhile. I buy 10 k of PM's and it just gets deducted from check and don't even notice. I'm nervous over the markets though. It looking grim.
 

AguA

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#9
If you're able to cover the 10k, why not give yourself a loan, then make the payments to yourself (at whatever interest rate you decide) instead of to a bank/credit union loan? At the end of the "loan" period, you've got your metals and the cash instead of the bankers having it. Plus if money should get tight along the way for an unforeseen reason, you can renegotiate your terms as needed. Just be sure to pay it back.

We've bought 2 cars this way in the last 15 years. Still have the cash and the cars.