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Rant: the fee on a 401k loan is not the real cost, check this number before you borrow
I pulled my plan docs after hearing Dave from my old job complain he was still paying on a $6,000 loan he took out in 2021, and the sheet showed he lost about $1,900 in growth by selling his funds at the bottom. The $75 setup fee gets all the attention, but the money you miss while the loan is out is the part that actually stings. Has anyone here run the math on a loan versus just pausing contributions for a year?
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