· Media Search  > >

Famous people say the darndest things!

Songs Music Lyrics

Lists of US Patents

Article Search
Most Recent Articles
 

Wear Your He(art) on Your Walls  

Pediatrician Offers Tips for Choosing the Best Toys for the Holi...  

Being Bald This Season Could be Dangerous  

Consumers Demand Better Customer Service  

Holiday Entertaining Made Easy  

Tradition Revisited in Home Design  

The Right Way to Care for Your Resilient Floor  

New Campaign Aims to Increase Bicycle Safety, Reduce Traumatic H...  

National Memorial to Organ Donors is Now A Reality  

Hard Economic Times, Expensive Gas & Oil Prices  

How to Know When You Need New Brakes  

Free Your Lawn from Weeds and Bugs the Natural Way  

Helping Kids Earn Extra MoneyIHateFinancialPlanning.com offers p...  

Crédito Tributario por Hijo(s) o Hija(s)  

Financiación de la Universidad: Infórmese  

Financial Planning is Like an Oil Change Use the same idea of re...  

Internet Provides Wealth of Information on Car Maintenance  

Tech Tips for Parents Classroom technology products offer value...  

Designers Share Expert Tips on Bathroom Lighting  

Proper Care Ensures Long Life for Vinyl Pool Liners  

Don't Let A Nasty Infection Spoil Your Travels  

Unique Ways to Take Decorating Personally Decorating With Wallp...  

Treatments for Low Back Pain  

Give Yourself Peace of Mind While Traveling Abroad  

Global Study Shines Light on Holiday Shoppers' Habits  

Security Tips for Americans Traveling Abroad  

Creating Safe Bathrooms for ChildrenKitchen and Bathroom Solutio...  

Make Memories Last Forever with DVD Burning  

The Proof Is When The Pudding Comes Off  

Think You're a Safe Driver? Think Again Tips on How to Think S...  

A Financial Back-to-School Basic for Mom and Dad  

Helping Kids Beat the Back-to-School Blues Boys and Girls Clubs...  

Spruce Up Your Home Without Busting Your Budget Do-it-yourself ...  

Wallpaper Shoppers can Visualize a Finished Room before Making a...  

What If Your Parents Need Hearing Aids?  

Window Films: Sunscreen for Your Car  

Sunglasses . . . More Important to the Health of Your Eyes Than ...  

Fixed vs. Adjustable: Which Mortgage Is Right for You? Talking ...  

Is Your Vehicle Ready for Summer? Is Your Vehicle Ready for Sum...  

Airport Travelers Get Some Peace of Mind It's Once Again Okay ...  

Higher Learning Key to Career Advancement  

Safety First: Tips on Puppy-Proofing Your Home  

Favorite Lipstick Discontinued? Try Custom Blended Cosmetics! ...  

A Spiritual Approach to Parenting  

Start Your Married Life Off Naturally  

Asset Allocation Funds: The All-in-one Investment Solution  

Deck the Table in Style This Holiday Season  

Holiday Ever After: Traditions Improve at the Dinner Table Ame...  

Para obtener ayuda e información del IRS, simplemente envíenos...  

Want to Loosen Uncle Sam's Grip on Your Wallet? Talking About M...  

"Green" Construction Preserves Precious Natural Resources New ...  

One of This Year's Hottest Holiday Gifts  

SPAM 101: How to Respond to E-mail Spam  

Soul Travel at Night Helps Solve Daytime Problems  

Christmas Plants Rooted in Centuries-old Histories and Tradition...  

Manage Your Time or Others Will do it for You By Harvey Mackay  

Steps to a Safe Kitchen  

Keep the Beauty of Valentine's Day All Year Long  

Choosing a Telephone Service The Choices are Different Today  

Fitness and Nutrition Tips for High School Athletes  

Taxpayers Overseas May Qualify for Filing Extension  

Smart Steps for Simple Carpet Care  

Hammer Away at Home Improvement Projects  

Is Online Learning Right for You?  

Casual Wear That Promotes Self Esteem  

Fix Minor Cracks Before They Require Costly Repairs  

A Properly Edged Lawn Can Save Lawn Care Time  

Eight Hours of Luxury Every Night For those seeking today's luxu...  

A New Model for High School Curriculum  

Men Take Better Care of their Cars than Themselves  

TeleFile, la manera más simple de presentar la declaración (I...  

Send a Holiday Message that Gives Back  

Less is More When it Comes to Home Décor  

A Gift that Will Forever Strengthen the Mother-Daughter Bond ...  

A New Model for Meeting the Needs of the Rural Elderly A communi...  

A Beginner’s Guide to Planning Your Financial Future  

Advice for Preparing Hobby Corners for Summer  

Acquiring Reading Strategies: What Parents Can Do to Boost Stude...  

America's Silent Epidemic What you should know about heart fai...  

Come Home to Soup  

Stress Got You Down? Put Sleep at the Top of Your To-Do List Ad...  

For Most Americans, Giving Means Volunteering  

Tips to Help Seniors Reduce Medication Errors  

Incentivos en los Impuestos para Educación Superior  

Five Steps to Solve Gripes and Conflicts  

Don't Outlive Your Money Are You Investing Wisely for Retir...  

What America Doesn't Know About Coughing is Infectious  

People with Diabetes Can Play a Big Role in Reducing Their Risk ...  

Make Getting There Part of the Adventure When You Travel This Fa...  

Winter Wellness  

Tips for Attracting More Birds to Your Feeder  

10 Tips to Get Your Car in Shape for Summer  

How Clean and Healthy are our Children's Schools?  

To Salt Or Not To Salt: That Is The Question, but What Is The A...  

Empower Yourself to Get a Degree  

Gifts That Keep Giving Give Your Friends and Family A Head Star...  

Take Control of Your Personal Finances  

Home and Office: Network Security in the Internet Age  

Finding the Perfect Wallpaper Pattern  

Vous devez planifier à vivre plus longtemps votre retraite  

What is Tiny in Size, Red in Color and Packs a Healthy Punch Aga...  

Six Tips for Finding the Best Child Care Provider All Children ...  

Organization Can Get Your Child an "˜A' in School and in Lif...  

What Have You Done for Your Engine Today?  

Make Healthy Eating and Exercise Part of Your Daily Routine  

Car Buyers to Find Better Vehicle Technology in 2006, but Fewer ...  

Deck the Table This Holiday Season  

Weight Loss is in Your Metabolic Number New Metabolism Monitori...  

Tying Things Together is the Latest Trend in Home Decorating  

To Keep Mold at Bay, Maintain a Clean and Dry Home  

Tips to Make the Most of Your Pool and Spa  

Time-Saving Tips for Creating a Picture Perfect Yard  

The Times of Your Life: Tools and Tips to Structure and Manage T...  

Attention Job Seekers: A Remarkable Career Opportunity By Bett...  

As Education Options Grow, More Parents Opt For Homeschooling  

Achieving Financial Independence Fact or Fiction: Six Surprisin...  

Back to School Basics Balancing Work and Play as Kids Head Back ...  

Money Matters: How Newlyweds Can Avoid Conflicts about Cash Co...  

Making the Most of a Small Kitchen Space  

Loss of Eyesight from Diabetes a National Health Problem  

Beyond Beer and Chips: Easy Ways to Host a Football Party that S...  

Did You Know That You Speak Latin?  

Battling Employee Sabotage in the Wired Workplace Experts offer...  

Set the Perfect Holiday Table  

Moms Are Headed to Familiar Retailers for Back-to-School Shoppin...  

Smart High Tech Gifts Help Grads Prepare for Future  

Maine Offers a Unique Camping Experience for Every Outdoor Explo...  

Discover A Unique Shopping Experience this Holiday Season "A Gi...  

Turn Your Computer into an Underwater Exploration Machine  

Nutcrackers Add a Whimsical Touch to Holiday Decor  

Not Thinking About a Career in Construction? Think Again  

New Online Recording of School Year Will Earn Good Grades From P...  

Brain Research Shows That Diet and Exercise are Keys to Living W...  

Checklist for Home Safety Simple Steps to Make Your Home Safer  

Chicken Makes Healthy Eating Tasty and Convenient  

Diabetes and Foot Health  

Color Your Home with the Feeling of Fall Cool Decorating Trend...  

Stop Dreaming! Magically Transform Your Garden By Night Increase...  

Fun and Functional  

How to Create a Spa in Your Bathroom  

Tips for Making Trips Easier, Safer and More Fun  

Adventure Awaits for Millennium Honeymooners  

Brrracing For Winter: Is Your Home Energy Efficient? Talking Ab...  

The Holiday Season: A Time for Giving as Well as Receiving  

Service Helps Seniors Make a Difference in Their Communities  

Tips for a Healthy New Year  

"Cool' Ideas for Reducing Energy Bills This Summer  

Keeping Tabs on What You're Taking  

Many Happy Tax Returns Preparing and filing your taxes in minut...  

National Program Seeks Heroes in the Depression Community  

Put the Freeze on Cold Air Drafts this Winter  

Putting the New Generation of TVs on Display  

Save Precious Time with A Portable Printer  

The Auto Vacation is Back ... Is Your Car Ready?  

Do an Annual Walk-around Home Check, and Don't Forget the Window...  

Credit Counts: Know Your Credit Score before Making a Major Purc...  

Spring Starts in the Fall  

Canadians Anxious About Winter Driving, Poll Shows  

How Diabetes Patients Can Easily Monitor Blood Sugar Incidence ...  

Combating West Nile Virus is a Concern for Government and Homeow...  

Schools' Soft Drink Deals May Increase Teen Cavities Tips to pr...  

Spyware  

Summer Recipes Every Mom Can Appreciate  

Take Control of Diabetes by Avoiding these 5 Common Mistakes  

Take Environmental Consciousness to Your Own Yard  

Tax Materials and Assistance Available in Spanish  

Arbors Add Functionality to Landscapes  

When Household Products Turn Deadly  

Online Shopping Eases Stress of Gift Giving  

Forget "the Big Talk" There's a better way to talk with your ki...  

Add Affordable Luxuries to Your Home Now and Reap the Benefits a...  

Give Your Car a Summer Spruce-Up  

Kitchen and Bath SolutionsBy Barbara Schmidt Building Successfu...  

Family Friendly Floors  

Crédito o Deducción por Impuestos Extranjeros

 

 

 
Web LinkGrinder.com

Top Breaking News
     Greek, Cypriot Leaders Resume Unification Talks in Nicosia by Nathan Morley
     Indonesia Tobacco Sales Grow, Raising Health Fears
     South Korea Allows Top Defector to Travel Overseas by VOA News

Home Equity Loan – Still a Better Idea Than a 401(K) Loan

home equity loan, line of credit, second mortgage, tax deductible, debt consolidation, home appraisal, debt consolidation, reverse mortgage, real estate investment


Category: World News
This article is brought to you by Charles Essmeier and Amazines.com.
Submit your Articles Here!

Anyone who borrows money is always looking for the cheapest source of funding. That makes sense; no one wants to pay more in interest than is absolutely necessary. And anyone with a sizeable amount of debt, such as credit card debt or a student loan, would be wise to consolidate their debt with a lower interest loan. One source of such a loan is a 401(K) account, which many consumers may have through their employer. Since the interest rate on Federal student loans rose on July 1, many students who missed that deadline may be wondering if consolidating through a 401(K) loan is a good alternative. Is it?

In a previous article, we have outlined several reasons why borrowing against a 401(K) account may be less favorable than using a home equity loan instead. The reasons include the fact that the interest on a 401(K) loan is not tax deductible, and that the borrower loses the ability for his or her investment to compound over time. If you have borrowed the money, it can’t earn interest and the cost over twenty or thirty years could be dear. In addition to those, there are other reasons why a home equity loan would be a better source of consolidation funds.

The 401(K) loan is tempting. There is no credit check, the interest rate is usually favorable, and you are paying the interest back to yourself. The additional disadvantages are considerable, though. The money you borrow from your retirement account was money invested before taxes. The money you pay back is after-tax money, effectively increasing the amount that has to be paid back. Worse, should you lose your job, the 401(K) loan must be paid back immediately, in full. Should this not be possible, the loan is treated as a distribution, requiring the payment of a 10% penalty in addition to state and Federal taxes. With the job market still rather volatile, the additional risk of borrowing against a retirement account is substantial.

Borrowing against a tax-deferred retirement fund is rarely a good debt consolidation option. The tax disadvantages, the threat of penalties and immediate repayment and loss of compounding generally make such a loan a bad idea. Those with existing student loans should probably keep them; the interest is tax deductible and the rate is still lower than with most other consumer loans. For most anyone else, a home equity loan would be a better choice, offering deductible interest, fewer risks, and a fixed repayment schedule. Anyone considering a consolidation loan should consider all of these options carefully, as the cost of choosing poorly could be great.



©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.

Return to Last Page

Homepage
Articles
DVD's
Member Login
Add Your Link
Edit Your Link
Contact Us
Image Hosting
Advertising
Disclaimer

  Auctions - eBooks - Maps - Banner Links - Software - Weather - Music - Movies - TV
Add Your Site · Terms Of Service · Privacy Policy
 

DISCLAIMER

Follow The Bill is a free service that searches the Internet and indexes all files found so that you may search quickly and easily for shared files. These files are created and made available individually by users whose identity we are not aware of and who we have no control over. In essence we function like a search engine tool; these files ARE NOT STORED OR SERVED BY OUR NETWORK. We are not responsible for any materials obtained by using our service. We do not monitor any of the contents of these files. These files may contain viruses, illegal materials, materials inappropriate for minors, offensive files and the like. BY USING OUR SERVICE, YOU ASSUME FULL RESPONSIBILITY FOR DOWNLOADING THESE MATERIALS AND WILL INDEMNIFY US FOR ANY DAMAGES THAT MAY BE INCURRED.

For More Specific Information VIEW OUR TERMS OF SERVICE.

Thank you and Enjoy!