401k- Why shouldn't you borrow $ from it during bad stock market years?

[JEDI]

You pay yourself back 10% (depending on plan) so it's like making 10% when the market is actually losing $.

What's the downside of Borrowing $ from your 401k and paying yourself back?

CPA- you reading this?

 

[Cutterhead]

I think the main problem with this is that there is no real way of telling when the stock market is going to have a few bad years. That, and you aren't really earning 10% because the extra 10% is your own money that you would otherwise be able to spend.

 

[Lithium381]

aren't you taxed on it again? double tax ftl

 

[Legend]

You can't predict the market. Bear markets are followed by bull markets, and you don't want to miss the 30% made on those years.

The LAST thing you want to do is sell low and buy high. Instead diversify with Modern Portfolio Theory.