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By georgeha (Fri Jun 01, 2007 at 08:12:28 AM EST) Squad Leader, debt, June moon spoon (all tags)
It was a short week, so I had to slack extra hard to make up for it.

Plus, you can pay them off? hexity goodness, a hectic/relaxing weekend and less.

Poll: Favorite part of June?

I'm pretty burned out, I didn't do a heck of a lot this week, I blame being on call last week. TGIF.

The latest solution to my continuing debt woes is finding out I can pay off a 401k loan ahead of time. My plan restricts me to 5 loans at a time, which makes taking a loan out a dicey affair as it doesn't leave me much of a cushion for real emergencies. But, I found out I can pay an existing loan to clear one of them. So, the plan is take a loan for $bignum, pay half of it to existing 401k loan, and half against usurious% CC card. I'm still hoping to get them all paid off in 5 years. Yeah, a five year plan, we know how well those work out.

Last night I played a hexity wargame against another person for the first time in years, and not counting a quick game of Ogre against ten year old, the first time in decades! I met a guy a the local suburban gaming store (not the local down the block one) for a few hours of Squad Leader. The scenario is probably an 8 hour one, we got through two turns in 3 1/2 hours. Next time, a smaller scenario.

There's going to be a lot of driving this weekend. Ten year old is going camping with the Girl Scouts, but also wants to run in the school's 5k Saturday morning. So, we drop her tonight, pick her up in Saturday morning in the suburb where I work, bring her back, and then pick her up Sunday morning. Lots of miles on the Tercel.

My parents are going camping too (same campground as the sprouts) but five year old just wants to stay with us and get spoiled.

In MC news, I still have a leak near my crankshaft/front sprocket, and it still smokes of oil after it gets hot. More work to do, maybe even a head gasket, if I can find one. No commuting for me. I do like having a trunk, it looks dorky but I feel much more secure carrying stuff.

June is a significant month for us, with birthday's, anniversaries and all sorts of end of school thingies. What's your favorite part of June?

< best way to remember a beloved pet | BBC White season: 'Rivers of Blood' >
TGIF | 13 comments (13 topical, 0 hidden)
schools out for summer!!! by muchagecko (2.00 / 0) #1 Fri Jun 01, 2007 at 09:20:17 AM EST
Except in WA. My kids are in school until June 26.

The only people to get even with are those that have helped you.
June 21st for mine by georgeha (4.00 / 1) #2 Fri Jun 01, 2007 at 09:22:06 AM EST
I can get up a little later then, maybe 7:00.

[ Parent ]
Wow. by muchagecko (2.00 / 0) #3 Fri Jun 01, 2007 at 09:47:15 AM EST
Did you stay in school so late when you were a kid?

I was always out by the first week in June. Usually the last week in May.

The only people to get even with are those that have helped you.

[ Parent ]
mid June was normal by georgeha (4.00 / 1) #4 Fri Jun 01, 2007 at 09:50:55 AM EST
in high school, the last week was testing, so some days you didn't even have to go, other days you just came in for a test and left.

[ Parent ]
401k loans by ucblockhead (2.00 / 0) #5 Fri Jun 01, 2007 at 10:13:48 AM EST
Isn't it better, financially speaking, to pay all other debt first? Interest on 401k loans goes to you, so mostly what you miss out on is the money you would have earned on the investments.
[ucblockhead is] useless and subhuman
Right, but I have four loands out now by georgeha (2.00 / 0) #6 Fri Jun 01, 2007 at 10:27:54 AM EST
and am limited to five at one time. If I take out loan and not pay off an existing, my balance just adds up and I can't use it.

[ Parent ]
Possibly, but not necessarily by ad hoc (2.00 / 0) #8 Fri Jun 01, 2007 at 10:39:26 AM EST
Don't forget, you're repaying the loan with money that has been taxed and which will be taxed again when withdrawn. So it's double taxed which, even if you're in the 15% bracket, is 30%.

A lot depends on just how usurious the CC rate is and whether that can be consolidated into a loan that may be deductible.

[ Parent ]
My loans are on my pretax 401k by georgeha (2.00 / 0) #9 Fri Jun 01, 2007 at 10:41:59 AM EST
don't ask my how it's done, but there appear to be no tax repercussions, once I pay them off.

[ Parent ]
Yes, but by ad hoc (2.00 / 0) #12 Fri Jun 01, 2007 at 11:52:42 AM EST
you're repaying the loan with after tax money.

[ Parent ]
It does, however it often makes sense. by ucblockhead (4.00 / 1) #11 Fri Jun 01, 2007 at 10:58:22 AM EST
Consider this example (which ignores compounding.)

$1000 401k loan.
Assume that you're getting a 10% rate on the 401k investment, this means that you lose the $100 you would have made during the year.
Since the 401k money will be taxed when you pull it out. Assume that the 401k has a 10% rate and your tax bracket when you retire will be 30%. This means that you lose $30 here.
Total loss for having the loan for a year: $130.

$1000 Credit card loan.
Assume 18% interest: $180/year.
Total loss for having the loan for a year: $180

Those figures obviously can very a lot, but when I was in this situation, the numbers were roughly like the above and so the decision was fairly obvious. It also depends a lot on how you expect the market to do. 401k loans are much smarter in bear markets than bull markets.

Also, the immediate out of pocket expense is even better for the 401k loan. Only $100 of the 401k is an immediate out of pocket expense.
[ucblockhead is] useless and subhuman

[ Parent ]
Yes, it may make sense by ad hoc (2.00 / 0) #13 Fri Jun 01, 2007 at 11:53:41 AM EST
it's just not a slam dunk.

[ Parent ]
saw a game on BGG you might like. by garlic (2.00 / 0) #7 Fri Jun 01, 2007 at 10:37:06 AM EST
Pocket Civ is a one player game, it's a print and play, the basic setup takes pen, paper and a deck of cards you're willing to ruin/modify. Advanced setup has board hexes and tracking chits.

I'll check later today by georgeha (2.00 / 0) #10 Fri Jun 01, 2007 at 10:42:35 AM EST
as bgg is banned from work (though consimworld is not).

[ Parent ]
TGIF | 13 comments (13 topical, 0 hidden)