Retired in USA

Your golden years are your best years! Make them shine!

  • Home
  • Personal Finance
  • Retirement Life
  • Saving & Spending

401k Loans: Are They REALLY Worth It?

June 1, 2023 · Personal Finance
401k Loan
Photo by Aaban at Shutterstock

Benefit: Retirement Savings Can Benefit

As you begin to make the repayments on your loan into your 401k account, they’re usually allocated back into your portfolio’s investments. You’ll repay a bit more into the account than you borrowed from it, and the difference becomes interest.

The 401k loan doesn’t produce an impact on your retirement if any lost investment earnings match the “interest” paid. Profit possibilities are offset dollar-for-dollar by interest payments.

Taking out this type of loan can boost your retirement savings if the interest you pay surpasses any lost investment earnings. Just remember that this will proportionally decrease your personal, non-retirement savings.

Pages: 1 2 3 4 5 6 7 8

Share this article

Facebook Twitter Pinterest LinkedIn Email

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Latest Posts

  • Split highway leading toward a desert town with tax monoliths on the left and a lush green countryside on the right. 5 Mistakes Retirees Make When Moving to Save on Taxes
  • An older man speaks and gestures with open hands to a group of visitors in a historic stone courtyard with a fountain. 10 Side Gigs for Retirees Who Love Talking to People
  • Older man holding a phone with a grocery list inspects a red bell pepper beside his shopping cart in a grocery store. 7 Side Gigs Where Retirees Get Paid to Shop
  • Watercolor illustration of a senior couple riding a tandem bicycle laden with gear along a coastal path at sunset. 7 Retirement Surprises No One Warned Couples About
  • Glass greenhouse with fruit trees sheltered beneath colorful overlapping arches against stormy and sunny skies. 5 Absolutely Necessary Insurance Policies
  • A concerned older man holding a smartphone showing an incoming call from an unknown caller in a home hallway. 10 Signs a Social Security Caller Is Not Who They Claim to Be
  • An older man and a young female student holding a syllabus walk together along a sunlit college campus path. 12 Ways Grandparents Can Help Grandkids Save for College
  • Senior woman browsing fresh flowers at an outdoor street market with striped vendor tents and shoppers. Top 7 Retirement Destinations for Independent Seniors
  • Seniors walk along a landscaped stone courtyard outside a modern multi-story residential building near a water fountain. 10 Signs You’ve Found a Retirement Community Worth Joining
  • Man standing by a curbside mailbox opening an Annual Notice of Change envelope on an autumn suburban street. 8 Things to Do the Week Medicare Open Enrollment Opens

Newsletter

Get retirement tips and senior living advice delivered to your inbox.

Related Articles

401(k), security check holiday

Social Security Check: 8 Ways to Live a Comfortable Life Off It Alone

#3 Try to delay accepting a Social Security check for as long as possible People…

Read More →
Older woman with glasses smiling at a laptop near a steaming mug and notepad on a wooden table.

5 Easy Remote Jobs for Seniors That Pay Weekly

Discover 5 flexible remote jobs for seniors that pay weekly, featuring verified pay rates, top…

Read More →
Senior couple sitting at a wooden table reviewing Social Security and Medicare documents beside a budget notepad.

10 Things Nobody Explains About Medicare’s Late Enrollment Penalty

Learn how to avoid costly lifetime Medicare late enrollment penalties, protect your HSA, navigate employer…

Read More →
retirement gigs

Do Retirement Gigs Increase Your Social Security Benefits?

But here’s the thing people with retirement gigs may want to know: your actual benefit…

Read More →
secure 2.0 act

7 Ways the Biden’s Secure 2.0 Act Will Change Your Retirement Savings

A lot of people postpone thinking about preparing for retirement because it could seem extremely…

Read More →
mistakes

7 Social Security Mistakes That Could Cost You a Fortune

Not checking your earnings record Did you know that the amount of benefits you will…

Read More →
health

Health Care Costs and the 6 Painful Effects on Retirees

Are you ready to plan your health care costs?

Read More →
Claiming Social Security early number

Claiming Social Security Early: 8 Reasons Why You Should Do This

3. You Need To Pay Off Debt Living your golden years without having to worry…

Read More →
social security

9 States to Live on Your Social Security Check Alone

3. Alabama As the song says, “Sweet Home Alabama,” this is one of the states…

Read More →
Retired in USA

Your golden years are your best years! Make them shine!

Inedit Agency S.R.L.
Bucharest, Romania

contact@ineditagency.com

Trust & Legal

  • Contact
  • Editorial Policy
  • Advertiser Disclosure
  • FAQ
  • Subscribe
  • Unsubscribe
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
  • Do not sell my personal information
  • Request to Know
  • Request to Delete
  • CA Privacy Policy

Categories

  • Enjoying Retirement
  • Personal Finance
  • Saving & Spending

© 2026 Retired in USA. All rights reserved.