Cattle loan

[Workinonit Farm]

As far as the loan goes if i borrow I borrow from my self (401k) that way cows are paid for I only pay myself back and they hold it out of my paycheck so I ain't gotta worry about nothing. If I loose my job the loan pays its self off so I don't loose the job and the cows

If you lose your job or change employers, your entire 401(k) loan balance is due within 60 days. If you can't repay it, the IRS and your state treat the funds as a withdrawal. You will owe all federal and state income taxes on it, plus an additional 10 percent penalty tax if you are under the age of 59.5 years old.

Copied that word for word. 401K loans are extremely risky. Much better off at your bank.

What Brute has posted, is correct. Borrowing against one's 401K can be more costly than a standard bank loan.

 

[callmefence]

Right now in central Texas the best deals I'm seeing come through the sales are young. Moderate framed heavy breds.
For 11/2 of those old skinny cows you can get a 2-3 year old with a 7-8 on her hip. It's a good time to buy some cattle that could hang around for awhile, or be sold for a pretty quick check.

 

[Coosh71]

Right now in central Texas the best deals I'm seeing come through the sales are young. Moderate framed heavy breds.
For 11/2 of those old skinny cows you can get a 2-3 year old with a 7-8 on her hip. It's a good time to buy some cattle that could hang around for awhile, or be sold for a pretty quick check.

Fence is right! I was at the sale yesterday and some middle aged bred cows and pairs sold for $1000. If a guy had sone extra pastures and some cash, he'd be in a good good place. It is definitely a great time to buy cows and pairs.

 

[DCA farm]

As far as the loan goes if i borrow I borrow from my self (401k) that way cows are paid for I only pay myself back and they hold it out of my paycheck so I ain't gotta worry about nothing. If I loose my job the loan pays its self off so I don't loose the job and the cows

I try not to borrow money for cows but I have the loan o have left on some is only a balance of $600 could pay it off if I wanted to but it will be paid in 5 months I wouldn't take a large amount Couple grand every 2 years it's easy to cover if I had to

If you lose your job or change employers, your entire 401(k) loan balance is due within 60 days. If you can't repay it, the IRS and your state treat the funds as a withdrawal. You will owe all federal and state income taxes on it, plus an additional 10 percent penalty tax if you are under the age of 59.5 years old.

Copied that word for word. 401K loans are extremely risky. Much better off at your bank.

 

[Bfields30]

Had cow from loan have another calf last night bad storm came through east Tx as well

 

[backhoeboogie]

1875 is too much for the 3 n 1s
1200 for pairs is doable depending on age, BCS, good mouths, ect.
Remind me... you already have a proper working brangus bull, correct?

I know nothing of Texas. What are your ideal months for calving in your area?
I would advise to only consider buying animals that fit your ideal timing.
It's your money, be choosy spending it.
I mean, why buy trouble or a pain in the butt with spread out calving dates?

We can calve year round here in Texas. I prefer not to calve in July or August. There is advantage to buying good cows that calve in off times for folks who prefer a calving season because we can get them cheap. Buying a group that calve in October for way under the market price suits me just fine. I'll just deal with a spread out season.

 

[TexasBred]

As far as the loan goes if i borrow I borrow from my self (401k) that way cows are paid for I only pay myself back and they hold it out of my paycheck so I ain't gotta worry about nothing. If I loose my job the loan pays its self off so I don't loose the job and the cows

If you lose your job or change employers, your entire 401(k) loan balance is due within 60 days. If you can't repay it, the IRS and your state treat the funds as a withdrawal. You will owe all federal and state income taxes on it, plus an additional 10 percent penalty tax if you are under the age of 59.5 years old.

Copied that word for word. 401K loans are extremely risky. Much better off at your bank.

What Brute has posted, is correct. Borrowing against one's 401K can be more costly than a standard bank loan.

This "May" be the case. Many companies will allow you to keep your 401-k in their program after you separate as well as maintain your loan as long as payments are made. There is no additional risk for the lender.