theJ Posted May 11, 2020 Share Posted May 11, 2020 1 minute ago, Heimdallr said: You can choose what sort of loan you want to take out. In my plan I think the max was 5 years. That is the max, correct. It is not tiered. Basically you set it up on a payment plan and repay through your paychecks. 21 minutes ago, JBURGE said: Are there no tax implications to pulling it out in the first place, or just if you don't re-contribute? I'm in Canada so not totally familiar with 401k/ Roth rules There are only tax implications if you don't pay it back. The big one is if you leave your job (either voluntarily, or not), you have to pay back that loan immediately. So they're a bit risky if you don't have the funds laying around (and if you did, you wouldn't need the loan). If you happen to get laid off while you had an outstanding loan, it could get pretty expensive for you. Personally i'd never do it, and wouldn't advise anyone to either. But plenty of people do it and get away with it. 1 Quote Link to comment Share on other sites More sharing options...
Glen Posted May 11, 2020 Share Posted May 11, 2020 1 minute ago, theJ said: That is the max, correct. It is not tiered. Basically you set it up on a payment plan and repay through your paychecks. There are only tax implications if you don't pay it back. The big one is if you leave your job (either voluntarily, or not), you have to pay back that loan immediately. So they're a bit risky if you don't have the funds laying around (and if you did, you wouldn't need the loan). If you happen to get laid off while you had an outstanding loan, it could get pretty expensive for you. Personally i'd never do it, and wouldn't advise anyone to either. But plenty of people do it and get away with it. Agreed. Risk outweighs the reward in almost all cases IMO 1 Quote Link to comment Share on other sites More sharing options...
JBURGE Posted May 11, 2020 Share Posted May 11, 2020 Just now, theJ said: That is the max, correct. It is not tiered. Basically you set it up on a payment plan and repay through your paychecks. There are only tax implications if you don't pay it back. The big one is if you leave your job (either voluntarily, or not), you have to pay back that loan immediately. So they're a bit risky if you don't have the funds laying around (and if you did, you wouldn't need the loan). If you happen to get laid off while you had an outstanding loan, it could get pretty expensive for you. Personally i'd never do it, and wouldn't advise anyone to either. But plenty of people do it and get away with it. Gotcha thanks. Ours work differently in Canada. If you withdraw you are taxed immediately (withholding tax, tiered based on amt of withdrawal) and then it is taxed 100% as income for the year of the withdrawal. You also lose the contribution space for the amount of the withdrawal. I can take 10k out and then re-contribute 10k in the same year, so I won't have any actual tax implications, but I will have to pay the withholding tax (which I would get back when I file), and I'd lose the contribution space. The loan is an interesting concept... but I agree, if you lose your job and have to repay it back immediately, yikes 1 Quote Link to comment Share on other sites More sharing options...
Heimdallr Posted May 11, 2020 Share Posted May 11, 2020 Yeah, that is the one drawback I forgot to mention. If I need to repay it back immediately I can just take contributions out of my IRA to cover it though. I just chose a 401k loan instead because I get better performance in my IRA and would prefer to keep my money there instead. 2 Quote Link to comment Share on other sites More sharing options...
1ForTheThumb Posted May 27, 2020 Share Posted May 27, 2020 Bump. Anyone getting in on these airline stocks? Quote Link to comment Share on other sites More sharing options...
twslhs20 Posted May 27, 2020 Share Posted May 27, 2020 1 hour ago, 1ForTheThumb said: Bump. Anyone getting in on these airline stocks? Nah. I'm taking Buffets lead on this one. Kinda hoping VTIQ dips again before next week. I wouldn't mind 50 shares as a spec play. Quote Link to comment Share on other sites More sharing options...
GSUeagles14 Posted May 27, 2020 Share Posted May 27, 2020 5 hours ago, 1ForTheThumb said: Bump. Anyone getting in on these airline stocks? absolutely, already had a very small amount of delta and just went in on southwest, which unfortunately im like a week late to the party. Quote Link to comment Share on other sites More sharing options...
Fresh Prince Posted May 27, 2020 Share Posted May 27, 2020 4 hours ago, GSUeagles14 said: absolutely, already had a very small amount of delta and just went in on southwest, which unfortunately im like a week late to the party. Bought AA a few months ago. Great return so far Quote Link to comment Share on other sites More sharing options...
GSUeagles14 Posted May 28, 2020 Share Posted May 28, 2020 3 hours ago, Fresh Prince said: Bought AA a few months ago. Great return so far investing into the market a couple months ago was extremely smart for anyone who did it, especially going in on big names that were unlikely to go under. Ive nearly doubled my money on royal Caribbean, i only had like 10 shares of delta but even thats up around $5/share already. Putting corona aside, and it sucks people died, if you lucked out and picked the right companies at the right time, you can very easily see 3-4x returns. Quote Link to comment Share on other sites More sharing options...
1ForTheThumb Posted May 28, 2020 Share Posted May 28, 2020 13 hours ago, Fresh Prince said: Bought AA a few months ago. Great return so far Yeah I bought Spirit and Delta which have been great so far, fingers crossed. Two non-airline stocks I got in early on that I'm happy with are PENN and DKNG which I'm obviously excited about. I think DKNG has some serious potential. Quote Link to comment Share on other sites More sharing options...
Shockwave Posted May 28, 2020 Share Posted May 28, 2020 (edited) 22 hours ago, twslhs20 said: Nah. I'm taking Buffets lead on this one. Kinda hoping VTIQ dips again before next week. I wouldn't mind 50 shares as a spec play. I sold 25 strike 6/19 puts on it for some nice premium $350 per contracts. Hoping I get assigned at that price. If you're able to trade 100 shares makes so much more sense to sell a put to open your position. Edited May 28, 2020 by Shockey1979 Quote Link to comment Share on other sites More sharing options...
twslhs20 Posted May 28, 2020 Share Posted May 28, 2020 1 hour ago, Shockey1979 said: I sold 25 strike 6/19 puts on it for some nice premium $350 per contracts. Hoping I get assigned at that price. If you're able to trade 100 shares makes so much more sense to sell a put to open your position. this looks like an option play. options are way above my head currently. Quote Link to comment Share on other sites More sharing options...
Shockwave Posted May 28, 2020 Share Posted May 28, 2020 15 minutes ago, twslhs20 said: this looks like an option play. options are way above my head currently. Yea but a very simple options play. If you have the cash for 100 shares you can essentially make the market pay you to buy the stock at a price you'd be comfortably owning it. If the stock doesn't get below the strike by that date then you can just keep the premium. Then resell the same put further out for more premium. On your end you're obligated to keep the cash for buying the shares on hold in your account. But you're doing that anyway as you wait for the stock to dip. In the example above if VTIQ isn't below $25 by 6/19 I will essentially keep the premium of the 5 put contracts I sold. So $350 x 5= $1750 and I will never even had owned the stock. If VTIQ is below 25 on that date I will most likely get assigned 500 shares and keep the premium. So the $1750 will be mine plus the ownership of the shares in which the $1750 lowers my cost basis. Then I turn around and sell covered calls until the stock is pulled away from me (known as the wheel trade). I sayf VTIQ tanks to 15 now I can still take on the shares at 25, and the 1750 helps cushion the blow. Or in that scenario I could just buy back the puts at a loss and avoid assignment. Quote Link to comment Share on other sites More sharing options...
Shockwave Posted May 28, 2020 Share Posted May 28, 2020 Also as a follow up. Those same puts I sold yesterday for $350 I could now buy back for $290. So one day later with the stock up 3% plus time decay on the contracts I could bank $300 by just simply buying back the puts. Options are a fools game for buyers and a gold mine for sellers. They're so blatantly slanted in the sellers favor. Quote Link to comment Share on other sites More sharing options...
animaltested Posted May 29, 2020 Share Posted May 29, 2020 On 5/27/2020 at 6:43 PM, GSUeagles14 said: Putting corona aside, and it sucks people died, if you lucked out and picked the right companies at the right time, you can very easily see 3-4x returns. Ah yes, the TRUE AMERICAN DREAM ; profiting off other peoples misery. 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.