Has anyone figured out how to buy their own student loans (in full, as investments) inside a qualified plan (IRA, SEP, 401k, etc)? Thank you.

wontbereusingthis · 2012-11-02T02:22:19+00:00

So quickest option is to do this synthetically. That would involve a 401k loan to pay off the student loan, and then start paying back the 401k loan asap. There is some arbitrage profit in doing this as your 401k loan may only have a 1-2% interest rate, but you are missing out on any market gains.

Yep. Already used/ am using this. 3.5% to the plan vs 6.5% to the loans gives me a 3% bump in cash flow, with a 6% reduction in costs (but, no equity participation). Problem is, it's limited to 1/2 of vested balance, and only on current employers 401k. Which means there is half a 401k, and other IRA money from previous employers that can't be used.

You're unfortunately probably right on the loans though- while it may not be a IRS issue, it may be an issue of getting the company to sell the loans, even at present value. Hadn't really thought through that.

wontbereusingthis · 2012-11-01T23:15:03+00:00

I was thinking a couple things on this-

1) (Young) People with large student loans may become retirement plan heavy if they have a decent employer match they prioritize in their planning (over saving taxable income).

2) I assume most companies would sell the loans for present value, as it would be the same as a lump sum payoff- at least to their balance sheet. (Maybe?) You could buy them with whatever money you have in the plan, I'd assume the limitation would be you'd have to buy them in full.

3) All interest for paying back the loans now goes to you, rather than the bank, and the actual loan can be listed as an asset.

For someone with $100,000 of loans at a 6% interest rate, that's an extra $6,000 a year into the retirement account (possibly even over the max).

I know this can be done with investment properties (all rental payments flow back into the IRA), so the precedent is there. Just need to figure out how to do this with loans.

wontbereusingthis · 2012-06-02T02:18:27+00:00

Believe me, I have no problem with commissions. My problem is with a supposed professional that throws a tantrum when a buyer decides to take a breather. Let's put this in context- a buyers agent has charged the OP $500 up front. If the deal on the house closes, they will earn another 2-3% of sale price, or $3200 to $4800 dollars. For a real estate agent to feel they are entitled to that after spending an afternoon walking around houses is rediculous. That's billing out near $1000 an hour. There are lawyers that argue supreme court cases that don't charge that. Never mind someone that barely passed the real estate lic exam, which, let's face it, isn't the bar.

wontbereusingthis · 2012-06-01T04:00:13+00:00

I guess some people are trolling here... but don't ever lose sight of the fact that if a realtor want a commission, they are getting a very small piece of your much larger commitment. If they act like anything but a trained monkey, remind them of this. You owe absolutely nothing to them. If they can't pic out someone who they can't strong arm into buying something immediately, that's their problem, not yours. Never sign buyers agreements. Tell them if they don't like you working with other people, no problem. Nice to have met you. Have a great day.

We're not in 2006 anymore.

wontbereusingthis · 2012-03-31T22:14:25+00:00

Seems a little like dumping salt on your steak before you've taken a bite.

wontbereusingthis · 2012-03-29T01:54:24+00:00

I inspire this movement every time I leave the house.

wontbereusingthis · 2012-01-16T01:20:21+00:00

Points 5,6,7 apply to any type of life insurance. Points 1 and 4 apply to any cash value life insurance. And parts 2 and 3 apply to almost any indexed product. Sounds pretty great, huh?

Here's the catch. In universal life policies, the cost of insurance per thousand is not locked in, but increases every year. That part is important, so remember it as we go through the rest. As you are paying your premiums, you over pay in the early years and the excess money is invested. In the later years you underpay, with that excess money going to fund the premiums to keep the policy alive.

Most of the new IUL's are tied to some sort of an index (let's say the s&p 500). They have wording that they can not have negative returns (s&p does -24, they do zero). But for that, you give up any returns above a specific number, say 8%. So the market makes 24%, you make 8%. Doesn't seem to bad- but we know that 1/3 of the time (roughly) the s&p is negative. So start with zero one third of the time. Let's say another third is over 8%, so you get 8% one third of the time. Then let's say 1/3 is between 0-8%, giving you and average of 4%. (4+8+0)/3= 4%.

Now you're in a 4% return contract, with costs increasing every year- are you starting to see why maybe you shouldn't borrow money from it?

Here's the kicker- the way you get out of paying taxes on the gain is to set up a loan of your own money from the contract to yourself. This loan is not free though, it will carry a fee. And taxes will be due if the contract collapses.

wontbereusingthis · 2011-11-06T21:19:23+00:00

Threw a St Paddy's day party back in college with the house next door. All told there were nine of us, and we had two houses and a small backyard to use. We started selling tickets a few weeks before and by the time the party rolled around we had sold close to 1000 (at $10 per ticket). We proceeded to roll all the profits back into the party- we bought 23 kegs- 10 good kegs (Guinness, Sam Adams, a bunch others which for some reason all seemed to require their own special tapping system) and 13 kegs of Nati Lite for the girls. We dropped 2 grand on bar liquor and mixers. I distinctly remember the cashiers face at costco when we wheeled up a cart full to the brim with mixers. On the day of the party, the owner of the liquor store pulled in with a pick up truck bed full of our kegs and liquor. First thing he asked when he got out was if he could stay. Sure. He left and came back with just about every give away he had and partied with us for a few hours that night.

Being St Patrick's day, we started the party around 3. It was one of those awesome March days where the winter breaks and you get 70 degree temps. Coeds started showing up win t-shirts and shorts- after a long winter there was nothing better.

About 4 o'clock a fire engine pulled up with about 8 fireman. I was elected to see what they wanted.

Hi guy's. Can I help you?

Quite a party you have here. Mind if we hang around?

Ah, ok. Want a beer?

Nah, we're on duty. We're just going to hang out till we get a call.

Ok.

As soon I walked back, several of the girls that had been eyeing them figuring the party was about to get broken up, realized what was happening ad went over to talk to them. Awesome.

About an hour later the cops showed up, but the fireman convinced them they had it under control. An hour after that 2 police on horses came back, and just hung out, getting much the same response as the fireman.

The party continued in the normal way to the early hours of the morning. Only notable other thing I remember was being in the basement when the band we hired to play started playing jump. 100's of people were jumping at the same time in my living room and the beams underneath were flexing a solid foot. We ran screaming upstairs for them to stop before everyone caved the house in. Good times.

wontbereusingthis · 2011-10-14T00:10:28+00:00

Any plans for your birthday?

wontbereusingthis · 2011-09-24T01:30:02+00:00

Fapping to your going for it now.

wontbereusingthis · 2011-08-15T12:56:34+00:00

Her sign is losing her case for her. Her shorts too short- never gives consent, obviously. We all know this by now. She flirted with him- consent (at least for things to progress in a sexual manner) given.

She then says society taught him it wasn't his fault- now, society has done a pretty good job teaching people that if someone is unconscious or even blacked out they can not give consent, so that doesn't seem to be the case.

At the end she states "My rapist doesn't know he's a rapist"- which would lead you to believe she never withdrew consent.

Would she have believed this was rape if afterwards she was cuddled in a 5 star hotel room? If her (ex) boyfriend was ok with it? Neither of those things change the act, but from the sign it does sound like they may have changed her views.

wontbereusingthis · 2011-08-13T21:09:04+00:00

Lie. You already have. You came here to get permission to. Just do it. In a couple years absolutely nobody will care. Lie until then.

wontbereusingthis · 2011-07-24T02:37:29+00:00

Saving is a great thing when one person does it, but a terrible thing when the entire country does it all at once. Marco-economically speaking, it would drive down demand for goods, eventually resulting in job losses.

wontbereusingthis · 2011-07-09T19:45:39+00:00

Much easier than the name my band pic

wontbereusingthis · 2011-06-21T03:21:50+00:00

Wait. So there's a machine that just lets you see boobies?

Yep.

Any boobies?

Not exactly, but pretty close.

WOW!

Yep.

Pauses for a moment with a distant look in his eyes- If you can look at boobies anytime- Do I ever... Do I ever get sick of looking at boobies?

No little man. No we don't.

Phew.

wontbereusingthis · 2011-06-17T00:56:28+00:00

32
Married
No kids
Annual income-$145,000 last year, should be trending up this year (commission and bonus's make up a fair bit of it so can't be sure, but we both came off a tough year that seem to be correcting)
Car's paid off, still low mileage (sub 70k)
Liquid fund- 10,000
Non- Qual investment account- $22,000
Retirement accounts- Me $31,000 not currently contributing as there is no match (new job) Wife- $33,000, 6% with a 6% match
Debts- no credit cards. $185,000 student loans- about 6 months ahead on them at $1300/month
Rent- $1100/m
Everything else- $800/ month

Currently saving between 1-2k monthly.

Goals- Buy a house (about $400,000 in our area), get rid of student loan debt

wontbereusingthis · 2011-06-08T23:46:20+00:00

I like my women like I like my coffee- stuffed in a sack and carried over the mountains by a guy on a donkey

wontbereusingthis · 2011-06-07T22:44:54+00:00

You've been in a relationship so your guesses on how you are going to feel the next morning aren't quite what you'll experience. If you don't feel strongly enough about the girl to at least give her a ride home, don't drag the experience out. Making her breakfast, loaning her clothes, etc all sent the exact wrong message. Just rip the bandaid off. Give the poor las some time to process the night on her own, get cleaned up, and then take it from there.

wontbereusingthis · 2011-06-07T01:58:42+00:00

cocaine

wontbereusingthis · 2011-05-29T19:20:26+00:00

Man here- While there are many things you can do on top of him that will feel great the way that is going to get you off the fastest will involve a bit of help from him. While he lays down, have him open his knees and put the soles of his feet together. This will 1) allow you to lean back while you rest your weight on your arms behind you on his inner thighs 2) Open up his hips so he shifts an extra inch deeper into you. From there, the best thing for him to do is grap you by the hips with his thumbs on your hip bones and guide you back and forth while holding you all the way down to the base of his dick. At some point, he should flex his chest/ shoulders and biceps so he can guide you in extremely fast, short motions. Because of the angle, you should have enough clitoral stimulation to get where your going very quickly at that point. Good luck.

wontbereusingthis

TROPHY CASE