Should you borrow against your 401-k to start a business?
Interesting question. It was posed in a recent article in Entrepreneur (online). They suggest that you may be able to borrow against a 401-k to start a business, at a reasonable interest rate. I’m not sure how that works, since you would have to borrow against (in many cases) investments that might lose value.
The other potential problem with borrowing against a 401-k is that if you lose your job, you would have to pay back the money immediately. So this strategy wouldn’t work if you’re thinking of quitting and going into your new …read more