Weighing possible savings against costly risks

Should I Borrow from My 401k To Buy a Car?

Ask The Dollar Stretcher


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Is it wise to borrow from your 401k to purchase a new car? Sure, you're essentially borrowing your own money and the rate is likely lower than other financing, but there are also risks to consider. In this edition of Ask The Dollar Stretcher, editor Gary Foreman discusses the pros and cons of borrowing from your 401k so you can weigh the likely savings against the possible costly risks.


If you have a question for Ask The Dollar Stretcher, email it to Gary.

Gary Foreman

Gary Foreman is a former financial planner and purchasing manager who founded The Dollar Stretcher.com website and newsletters in 1996. He's been featured in MSN Money, Yahoo Finance, Fox Business, The Nightly Business Report, US News Money and CreditCards.com. Gary shares his philosophy of money here. You can follow Gary on Twitter or visit Gary Foreman on Google+. Gary is also available for audio, video or print interviews. For more info see his media page.

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