Originally Posted by
Brocc15
Now this is nothing new, but I am new so I just looked at it for the first time yesterday, and am wondering if I am interpreting this correctly. We can take a loan out from our retirement savings with a standard amoritization and pay interest, but we are paying the interest back to ourselves so we aren't really being charged anything? And it also said no tax penalties. If that is right, that's awesome. Could you then use that for part of a downpayment for a home and essentially not pay interest on that portion? Maybe I am completely misinterpreting this.
All true. It is a good deal if your investments go down, not so good if they go up as you lose that portion for appreciation. You can use the money for anything you want but there are limits on how much you can take out. Check with your tax/financial planner to see if it is the best thing to do.