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Investing in a Roth IRA with a Personal Loan?
Reached the AGI for Roth IRA - now what?Tax implications of re-characterizing a Traditional IRA to a Roth IRA after having taxes filed for the year it was contributed toHow feasible would it be to retire just maxing out a Roth IRA?Roth IRA contributions and Roth 401(k) rolloverAm I investing properly for my future?Using a Roth IRA instead of a college savings accountWealthfront Personal Account or Personal+Roth IRAWhy would I ever invest in a traditional IRA over a Roth IRAHow to properly compare pension vs Roth IRA?Why do 401k up to company match, then fill Roth IRA, then finish filling 401k?
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty margin-bottom:0;
Okay this might be a dumb question but here it goes.
Does it at all make sense to invest in a Roth IRA contributing the max by taking out a loan? So say I take out a $6k loan at the beginning of the year each January, then I pay it back throughout the year. Until the next year rolls around then I do the same thing by having the loan length be only 1 year.
I would still have to take into consideration on how much of % the loan would be and subtract it, but by my calculations it looks like the 6k each year would be better in the long run. I believe I am missing something or have not thought it all through. What am I missing?
united-states investing retirement roth-ira debt
edited Jun 3 at 21:31
Chris W. Rea
27.1k1589175
asked Jun 3 at 19:39
donkeykong213donkeykong213
211
add a comment |
Okay this might be a dumb question but here it goes.
Does it at all make sense to invest in a Roth IRA contributing the max by taking out a loan? So say I take out a $6k loan at the beginning of the year each January, then I pay it back throughout the year. Until the next year rolls around then I do the same thing by having the loan length be only 1 year.
I would still have to take into consideration on how much of % the loan would be and subtract it, but by my calculations it looks like the 6k each year would be better in the long run. I believe I am missing something or have not thought it all through. What am I missing?
united-states investing retirement roth-ira debt
edited Jun 3 at 21:31
Chris W. Rea
27.1k1589175
asked Jun 3 at 19:39
donkeykong213donkeykong213
211
7
Why not contribute to Roth IRA through the year, instead of repaying the loan?
– void_ptr
Jun 3 at 19:55
4
Beware that the two tests you ran did not contribute the same amount, one is 36k the other is 30k.
– Ben Voigt
Jun 3 at 23:40
A balance transfer from a couple of credit cards will cost less than a personal loan. ~3% vs 6%.
– Navin
Jun 4 at 4:55
add a comment |
Okay this might be a dumb question but here it goes.
Does it at all make sense to invest in a Roth IRA contributing the max by taking out a loan? So say I take out a $6k loan at the beginning of the year each January, then I pay it back throughout the year. Until the next year rolls around then I do the same thing by having the loan length be only 1 year.
I would still have to take into consideration on how much of % the loan would be and subtract it, but by my calculations it looks like the 6k each year would be better in the long run. I believe I am missing something or have not thought it all through. What am I missing?
united-states investing retirement roth-ira debt
edited Jun 3 at 21:31
Chris W. Rea
27.1k1589175
asked Jun 3 at 19:39
donkeykong213donkeykong213
211
Okay this might be a dumb question but here it goes.
Does it at all make sense to invest in a Roth IRA contributing the max by taking out a loan? So say I take out a $6k loan at the beginning of the year each January, then I pay it back throughout the year. Until the next year rolls around then I do the same thing by having the loan length be only 1 year.
I would still have to take into consideration on how much of % the loan would be and subtract it, but by my calculations it looks like the 6k each year would be better in the long run. I believe I am missing something or have not thought it all through. What am I missing?
united-states investing retirement roth-ira debt
united-states investing retirement roth-ira debt
edited Jun 3 at 21:31
Chris W. Rea
27.1k1589175
asked Jun 3 at 19:39
donkeykong213donkeykong213
211
edited Jun 3 at 21:31
Chris W. Rea
27.1k1589175
asked Jun 3 at 19:39
donkeykong213donkeykong213
211
edited Jun 3 at 21:31
Chris W. Rea
27.1k1589175
edited Jun 3 at 21:31
Chris W. Rea
27.1k1589175
edited Jun 3 at 21:31
Chris W. Rea
27.1k1589175
27.1k1589175
asked Jun 3 at 19:39
donkeykong213donkeykong213
211
asked Jun 3 at 19:39
donkeykong213donkeykong213
211
asked Jun 3 at 19:39
donkeykong213donkeykong213
211
211
7
Why not contribute to Roth IRA through the year, instead of repaying the loan?
– void_ptr
Jun 3 at 19:55
4
Beware that the two tests you ran did not contribute the same amount, one is 36k the other is 30k.
– Ben Voigt
Jun 3 at 23:40
A balance transfer from a couple of credit cards will cost less than a personal loan. ~3% vs 6%.
– Navin
Jun 4 at 4:55
add a comment |
7
Why not contribute to Roth IRA through the year, instead of repaying the loan?
– void_ptr
Jun 3 at 19:55
4
Beware that the two tests you ran did not contribute the same amount, one is 36k the other is 30k.
– Ben Voigt
Jun 3 at 23:40
A balance transfer from a couple of credit cards will cost less than a personal loan. ~3% vs 6%.
– Navin
Jun 4 at 4:55
7
7
Why not contribute to Roth IRA through the year, instead of repaying the loan?
– void_ptr
Jun 3 at 19:55
Why not contribute to Roth IRA through the year, instead of repaying the loan?
– void_ptr
Jun 3 at 19:55
4
4
Beware that the two tests you ran did not contribute the same amount, one is 36k the other is 30k.
– Ben Voigt
Jun 3 at 23:40
Beware that the two tests you ran did not contribute the same amount, one is 36k the other is 30k.
– Ben Voigt
Jun 3 at 23:40
A balance transfer from a couple of credit cards will cost less than a personal loan. ~3% vs 6%.
– Navin
Jun 4 at 4:55
A balance transfer from a couple of credit cards will cost less than a personal loan. ~3% vs 6%.
– Navin
Jun 4 at 4:55
add a comment |
1 Answer
1
active
oldest
votes
- That calculator presumes that the stock market will increase every month. It doesn't.
I would still have to take into consideration on how much of % the loan would be and subtract it. But you haven't. A 6% rate on personal loans isn't out of the question, and it might be higher.
Instead of hypothetical growth numbers, use real statistics for the past two years, and add in the cost of the loan. Remember to deduct the interest costs from the $6,000 before calculating.
answered Jun 3 at 19:54
RonJohnRonJohn
15k42566
add a comment |
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1 Answer
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- That calculator presumes that the stock market will increase every month. It doesn't.
I would still have to take into consideration on how much of % the loan would be and subtract it. But you haven't. A 6% rate on personal loans isn't out of the question, and it might be higher.
Instead of hypothetical growth numbers, use real statistics for the past two years, and add in the cost of the loan. Remember to deduct the interest costs from the $6,000 before calculating.
answered Jun 3 at 19:54
RonJohnRonJohn
15k42566
add a comment |
- That calculator presumes that the stock market will increase every month. It doesn't.
I would still have to take into consideration on how much of % the loan would be and subtract it. But you haven't. A 6% rate on personal loans isn't out of the question, and it might be higher.
Instead of hypothetical growth numbers, use real statistics for the past two years, and add in the cost of the loan. Remember to deduct the interest costs from the $6,000 before calculating.
answered Jun 3 at 19:54
RonJohnRonJohn
15k42566
add a comment |
- That calculator presumes that the stock market will increase every month. It doesn't.
I would still have to take into consideration on how much of % the loan would be and subtract it. But you haven't. A 6% rate on personal loans isn't out of the question, and it might be higher.
Instead of hypothetical growth numbers, use real statistics for the past two years, and add in the cost of the loan. Remember to deduct the interest costs from the $6,000 before calculating.
answered Jun 3 at 19:54
RonJohnRonJohn
15k42566
- That calculator presumes that the stock market will increase every month. It doesn't.
I would still have to take into consideration on how much of % the loan would be and subtract it. But you haven't. A 6% rate on personal loans isn't out of the question, and it might be higher.
Instead of hypothetical growth numbers, use real statistics for the past two years, and add in the cost of the loan. Remember to deduct the interest costs from the $6,000 before calculating.
answered Jun 3 at 19:54
RonJohnRonJohn
15k42566
edited Jun 3 at 20:00
answered Jun 3 at 19:54
RonJohnRonJohn
15k42566
answered Jun 3 at 19:54
RonJohnRonJohn
15k42566
answered Jun 3 at 19:54
RonJohnRonJohn
15k42566
15k42566
add a comment |
add a comment |
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7
Why not contribute to Roth IRA through the year, instead of repaying the loan?
– void_ptr
Jun 3 at 19:55
4
Beware that the two tests you ran did not contribute the same amount, one is 36k the other is 30k.
– Ben Voigt
Jun 3 at 23:40
A balance transfer from a couple of credit cards will cost less than a personal loan. ~3% vs 6%.
– Navin
Jun 4 at 4:55