The other serious drawback to this approach is the lost earnings
opportunity, which many people overlook in their zeal to find cash. Be
very careful before taking this option.

Lost earnings opportunity in the stock market? Sounds like oxymoron to
me. With the majority of blue chips paying less then 1% in dividends
(please don't state the exceptions, because I understand there are
those rarities), the only "earnings opportunity" in the stock market is
appreciation.

Most 401K loans are levied with an interest rate upwards of 8%. So,
let's recap...He borrows tax deferred money from himself at anywhere
between 6-8% and the interest charged is reinvested back into his
retirement fund.

Unlike your definition of "earnings opportunity" which is speculative
in nature, this is guaranteed (unless he doesn't repay it).

Sorry for the top posts guys!

Regards,

H. Scott Miller
National Commercial and Residential Lender
Carteret Mortgage
TOLL FREE PHONE#: 1.877.716.6495
TOLL FREE FAX#: 1.877.578.2041
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