Using 401k to invest in this 2011 football season

[frostno98]

Borrowing 3k, using 1k to gamble College football in a few weeks Have well over 20k just sitting their doing nothing, basically having hundreds of dollar fluctuating back forth with this unstable AA+economy and stock market. I'd take my chance investing it in the sports market this year. Worst case scenario, I got 36 months to pay it off at $80 dollars a month. More likely though, I'll pay the 3k off by the end of Basketball the 2012 season.

[TR88]

[daneault23]

Ok guy show me how this is going to happen. I would like to see this.

[Emily_Haines]

Great move you will not regret this. The only thing you could have done to put yourself in a better situation would have been to cash it all out.

Everyone else has bought into the BS 401k investment scam. Anyone with money in a 401k plan will get hurt bad.

[sweethook]

it may work out for you sir , gl

[neverstoppers23]

Not a smart move, for one its gambling, for two the fees and taxes associated with taking money out of your 401k early , and the taxes dealing with any winnings from gambling assuming you win. But its your money you know the risks.

[doublej95]

not the brightest idea but good luck.

[Wiggums5]

what an idiot

[eleuropeano]

Not a smart move, for one its gambling, for two the fees and taxes associated with taking money out of your 401k early , and the taxes dealing with any winnings from gambling assuming you win. But its your money you know the risks.

I suppose he is not going to pay taxes on something that is illegal anyway...

[Streakster777]

Do you have a set goal? 100%, 200%, 300%, or skies the limit approach?

In stocks we would love to double our money every 3 years or so, but in gambling we all want a 10,000% return quickly

[Tech N9ne]

This will not end well

[Br0nxer]

No chance this doesnt end very well. Good luck chief

[dbartinbwgc]

I believe he is borrowing from his 401k so no taxes or penalties and he will pay it pay each week out of his paychecks.

I am currently looking into something like this my self, but living in Vegas I can bet with no problem.
My thing is I was going to open a "Checkbook IRA" and transfer some funds into it from my other IRAs.
My buddy is a tax accountant and is looking into this.
All monies won would need to go into the account and I can take anything from it.
I have a Real Estate IRA that holds some rental property.
He think is would work and would be legal(IRS stand point), just have to keep records of every bet.
He said the worst case if it comes out to be not legal(IRS) I would just have to pay taxes on it.

[jarvol]

He is taking a loan from his 401k you dumbasses. There are no penalties other than the interest that he is paying on the loan to himself.

While doing it to gamble on football may not be the wisest of decisions, if you are sure you can pay it back ($80/month isn't steep unless you are a broke ass like JJ) then taking a loan from your 401k when you need money is the ABSOLUTE BEST thing to do when you need cash.

[denn333]

jarvol is right on. great idea. if you can't pay it back then you have the penaltys and tax consequences.

[The Bet Master]

I suppose he is not going to pay taxes on something that is illegal anyway...

It's not illegal... Even so if you write down drug dealer on your tax returns they don't even do anything as long as they get the money.

[neverstoppers23]

I suppose he is not going to pay taxes on something that is illegal anyway...

You should, its just creating more problems. Feds are not going to come after you for gambling online, they will come after you if they find out you have winnings you are not reporting.

[neverstoppers23]

He is taking a loan from his 401k you dumbasses. There are no penalties other than the interest that he is paying on the loan to himself. .

I thought he was 'borrowing' which could mean a lot. He never specifically said he was taking a loan out. It sounded like to me he was just trying to be sly and be like yeah I am just going to 'borrow' this money and win money no problem put it back no problem.