LogFAQs > #967402052

Mezcla posted...

well tbh i hadn't considered a loan. we dont have an income problem but i want to hold on to cash as much as i can

Got it. That said, if you can swing it, go for the loan instead. Not sure how it would work for you, but under my plan the only cost for the loan was a $50 fee from Vanguard.

There is an interest rate you have to pay on the repayments, but you repay that interest back into your own account. So you are literally paying the interest back to yourself.

So with a loan there would be no penalties or taxes due like there would be for a withdrawal (other than the perhaps nominal processing fee mentioned earlier). If you cant make repayments or change jobs or something and have to close out the loan, it would just be treated like a withdrawal at that point. The loan will absolutely keep more cash in your pocket in the long run vs doing a withdrawal.

I took out a loan in 2018 to start up my Robinhood account and pick out my own stocks, as well as paid off some student loans. Best move I ever made and I have no regrets, and will have it fully paid off here in another half year or so.