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Your email address will not be published.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

  • A female pharmacist in a white coat explains paperwork to a senior man over a counter with two pill bottles. Your Medicare Drug Plan Could Cost $50 More a Month in 2027: How to Switch by Dec. 7
  • A man walks a golden retriever along a rural road lined with stone walls overlooking an autumn village landscape. The Safest States in America, Ranked: A New England Favorite Comes Out on Top
  • Illustration of a person walking up stone steps on a ridge marked with retirement ages toward a rising sun. 9 Social Security Mistakes That Can Cost You Thousands
  • A man stands in a bank lobby looking at a receipt near an ATM and a January wall calendar. 9 Ways the 3.6% COLA Will Show Up in Your January Check
  • Mature woman with gray hair working on architectural blueprints with a pen at a desk in a bright loft office. 11 High-Paying Jobs Over $45 an Hour That Welcome Older Workers
  • A man and woman talk on a brick sidewalk outside a library and community theater along a sunlit small-town main street. 5 Hidden-Gem Towns Where $2,500 a Month Covers a Comfortable Retirement
  • A woman measuring an empty living room with hardwood floors and a brick fireplace using a yellow tape measure. How Much Home Can You Really Afford on a Retirement Income?
  • Retro illustration of a winding highway dividing a coastal landscape with palm trees and a desert with saguaro cacti. 11 States Seeing the Most Retirees Move In
  • Watercolor illustration of a man standing on a stone terrace overlooking a winding hillside road and a distant city. 8 Social Security Rules That Could Shrink Your Check After a Spouse Dies
  • Watercolor illustration of an open weekly planner showing retirement activities like pickleball, gardening, choir, and hiking. 11 Retirement Hobbies That Let You Make Friends Quickly

Newsletter

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

Related Articles

Illustration of a woman guiding a senior citizen away from tangled red tape toward a sunlit stone archway.

Social Security Number Stolen? A New Law Could Get You Help Faster

Learn how the new 2026 federal law provides a single point of contact to resolve…

Read More →
A mature couple reviewing their retirement plan on a tablet in a bright, modern kitchen.

These Common 401(k) Errors Could Cost You Millions

Avoid these costly 401(k) errors to save millions. Learn about 2026 contribution limits, the new…

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 →
A park bench with a newspaper and glasses, set along a wet walkway leading to the illuminated U.S. Capitol at dusk.

Why This Midterm Could Be the Biggest Check on Trump’s Power Yet

Learn how the 2026 midterm elections could check executive power and impact your Social Security,…

Read More →

Your Complete Retirement Income Plan: A Step-by-Step Guide for Seniors

Gathering fresh herbs from a sun-drenched garden illustrates the rewarding process of identifying and collecting…

Read More →
tax

5 Tax Records Seniors Should NEVER Throw Out

3. Acquisition costs for property It is essential to keep any records that are related…

Read More →
A smiling retired woman in her 60s happily arranging a holiday book display in a cozy, sunlit neighborhood bookstore.

Best Seasonal Retail Jobs Retirees Can Land Before the Holiday Rush

Explore the best seasonal retail jobs for retirees to boost income before the holidays, featuring…

Read More →
Illustration of a torn umbrella shielding a hospital and clinic while rain falls on dental, vision, and hearing items.

9 Things Original Medicare Doesn’t Cover

Learn the 9 major healthcare services Original Medicare doesn't cover and discover actionable strategies to…

Read More →
Why Two Retirees With the Same Salary Can Get Very Different Checks

Why Two Retirees With the Same Salary Can Get Very Different Checks

Discover why two retirees earning identical salaries end up with vastly different Social Security checks,…

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.