Originally Posted by Wasatch Phantom

I dunno Ten...

(Disclaimer: I've never borrowed from my 401K)

From what I've read (on the Internet, so it must be true, right?) borrowing from one's 401K is a last resort. For example:

8 Reasons To Never Borrow From Your 401(k)

Thinking of Borrowing Against Your 401k? Here's What You Need to Know | DailyPerk

401(k) Loans - Nine Things to Know About Borrowing from Your 401(k)

Perhaps I'm missing something (likely) but I don't see the advantage...

Suppose I borrow $50K and I pay myself 4% interest. That money is "growing" at 4% per year.

In the period 1928 to 2010, stocks earned an average of 11.3 percent, according to U.S. News and World Report.

So assuming average long term returns, I'm losing a net 7.3% on that 50K loan.

This strikes me as a bad deal. Please tell me what I'm missing.