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<blockquote data-quote="angus9259" data-source="post: 1397847" data-attributes="member: 7398"><p>Are you talking about borrowing to buy land or borrowing to buy cattle?</p><p></p><p>First, taking from a 401k is a VERY expensive proposition if you used pre-tax dollars to do it. Can't imagine a world in which that's a good idea. You can frequently BORROW against your 401k. If I were going to borrow, that's where I would do it AS LONG AS YOU KNEW YOU WOULD PAY IT BACK. If "borrowing" from your 401k becomes "withdrawing" from your 401k, then walk away.</p><p></p><p>Second, borrowing to buy cattle I can't recommend to anyone. If you get some additional land, retain your heifers and background your steers to eat down the fields till you get your numbers up. 30 animals can become 100 in a hurry especially when you're 37. Sounds like you've done a great job staying out of debt - keep it that way.</p><p></p><p>Borrowing to buy land is a different matter. If that's the case, I would borrow first from my 401k since you pay yourself back, second, I would attempt to finance through a bank if the owners won't do a land contract.</p><p></p><p>I also can't imagine a world in which cattle raising is a good retirement plan. Hope you find a retirement plan a little more secure than that so you can raise cattle as your retirement "work".</p></blockquote><p></p>
[QUOTE="angus9259, post: 1397847, member: 7398"] Are you talking about borrowing to buy land or borrowing to buy cattle? First, taking from a 401k is a VERY expensive proposition if you used pre-tax dollars to do it. Can't imagine a world in which that's a good idea. You can frequently BORROW against your 401k. If I were going to borrow, that's where I would do it AS LONG AS YOU KNEW YOU WOULD PAY IT BACK. If "borrowing" from your 401k becomes "withdrawing" from your 401k, then walk away. Second, borrowing to buy cattle I can't recommend to anyone. If you get some additional land, retain your heifers and background your steers to eat down the fields till you get your numbers up. 30 animals can become 100 in a hurry especially when you're 37. Sounds like you've done a great job staying out of debt - keep it that way. Borrowing to buy land is a different matter. If that's the case, I would borrow first from my 401k since you pay yourself back, second, I would attempt to finance through a bank if the owners won't do a land contract. I also can't imagine a world in which cattle raising is a good retirement plan. Hope you find a retirement plan a little more secure than that so you can raise cattle as your retirement "work". [/QUOTE]
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