Loan to for pay the wedding???

Thank you all for the comments. NO MORE TAKINGA LOAN UNLESS ITA FOR A HOUSE! fh and I decided to cut back on guests and only invite essential people in the family and also select a venue thats all inclusive and will only make hs pay per head, no minimums required. thank you to all ladies who are so helpful! iy helps alleviate uncertainty.

Good decisions!

FIRST off I never told her to use HER 401K I simply stated that IF we don't have the full amount and are short we MIGHT do that. TWO both our 401K don't hit us with penalties we simply PAY OURSELVES back maybe that isn't the case for some of you but it is for us. ALSO, stop telling ppl that since some of us simply said taking out a loan IS an option doesn't mean some of us shouldn't give ADVICE. NO ONE here said yes do it go ahead take out 30k to pay for a wedding NOT ONE PERSON HERE said that. Simply if you saved up 15-18K and u needed a loan for maybe say at most 5k then yes IF SOMEONE feels comfortable taking out a loan then go ahead! It's THEIR CHOICE. Stop bashing people when they GIVE ADVICE that isn't what everyone else is saying.

Don't take out a loan, I agree with Celia there is no party worth going into debt for.

FH and I made the choice to have a long engagement so we can pay cheque by pay cheque save for the wedding and not charge anything against credit cards. If you have to wait a little bit longer to get married or find ways to cut costs.

Sweet tap dancing Jesus Beth, switch to decaf.

In no scenario, in no world, is it worth EITHER taking out a loan or pillaging money you've put away for retirement to have a party. If a couple has saved up 18,000 for a party, they can throw a very nice party on that 18,000 if they redline some of the crap that the WIC tries to tell you is necessary.

Your advice is faulty. Live with it. You want to borrow on your 401k? Go ahead. Even if you don't get a penalty, you'll NOT get interest on the money you took out to pay for uprights. And when you're ancient, like me, you'll wish you hadn't.

Don't do a loan! And don't take out from your 401K that's a bad idea also. If you have to push your wedding back so be it. If you have to cut your guest list than do it! I'm a budget bride of $7,000 and trying to stay under that. Just buy stuff here and there if you can, every week I've been getting at least 1 item for the wedding and keeping receipts so I can keep track. Going into debt for a party is not worth it. And couples fight over money all the time, definitely don't wanna enter a marriage in debt. Good luck!

"Simply if you saved up 15-18K and u needed a loan for maybe say at most 5k then yes IF SOMEONE feels comfortable taking out a loan then go ahead!"

Yeah, ok. I feel comfortable blowing through my retirement fund playing blackjack in Atlantic City. It's a shitty choice, but I feel comfortable with it!

Beth, I think you may have missed the memo on what the point of advice actually is. It's not to pat someone on the back for making a bad financial move as long as they're comfortable with it, it's to use logical reasoning and present a solution that isn't financially ridiculous.

And then people wonder why we're in a recession...

I am glad you decided to not take a loan for your wedding.

On another note, will you consider changing your default rings avatar? It is so people know you are not a troll. A lot of people responded here because of your hot topic discussion title but if you post another discussion not so hot, people would ignore it due to the rings avatar (translate into possible troll).

Good luck on the rest of your planning!

Thanks Celia. And for the record Beth, not receiving the interest IS the penalty when you borrow from you 401k. Just a few reason why borrowing against your 401k is a bad idea:

If Your Financial Situation Deteriorates, You Could Lose Even More Money

Should you find yourself in a position where you are unable to repay the loan, it is treated as a withdrawal and the outstanding loan balance will be subject to current income taxes in addition to a 10% early withdrawal penalty if you are under age 59.5.

You Are Trapped

If you have an outstanding loan, most plans require that the loan be immediately repaid if you quit your job. So, as long as you have a loan, you are stuck in your current job and may be forced to pass up a better opportunity should one come along, unless you are willing to take the loan balance as a withdrawal and pay the 10% penalty, which further compounds the growth opportunities that you have missed by taking the loan.

You Lose Your Cushion

Taking a loan from your 401(k) plan should only be done in the direst of circumstances, after you have completely exhausted all other potential sources of funding. If you take money from your plan to fund a vacation or pay off higher interest loans, the money won't be there to borrow if you really need it.

It Suggests That You Are Living Beyond Your Means

The need to borrow from your savings is a red flag - a warning that you are living beyond your means. When you can't find any other way to fund your lifestyle than by taking money from your future, it's time for a serious re-evaluation of your spending habits. What purchase could possibly be so important that you are willing to put your future in jeopardy and go into debt in order to get it?

It Violates The Golden Rule of Personal Finance

"Pay yourself first" is the golden rule of personal finance. Violating that rule is never a good idea.

I am glad op you find wisdom from this post, now if another poster would find that same wisdom. Fh and I could prob spend more on the wedding but we also want a house and think our future is more important than one day of celebration.

@carebear yes! Im just getting used to ww! Will change the avatar!

^^^I love your new avatar, it is so cute!

Do not take out a loan for your wedding. A wedding is not something worth taking out a loan for. I am in law school but we are paying for our wedding cash. A lot of the vendors we have give discounts for cash so that helps us and we shop around to find better prices and options. We have all the benefits of a great wedding but not the loan.

I will say this, in some communities loans for wedding are expected just like a house or car. I have had friends completely shocked that I am not taking out a loan. That being said, I believe my father did take out a loan to help me when my house decided it hated me. ( I had a AC unit break. My water heater crapped out. AND then had a major water pipe burst. Sigh)

I would not take a loan unless you it planned and you are know how much interest you will take on and have a pay off plan.

I agree with the most of WW community, plan according to your means. Don't use a loan as income.

I'm guessing that your friend is not good with her finances. Taking out a loan for your wedding is a horrible thing to do. You should not go into debt just to have a big fancy wedding. If you can't afford a big wedding cut back your budget and have a smaller wedding. Also, borrowing from your 401(k) is the worst advice that I have ever seen on this site. What in the actual hell?

I think it depends on your situation. Only you know what you can truly afford. I understand not wanting to deplete savings in case of emergencies and stuff - it's nice to have that. Taking a loan for a wedding generally isn't great advice but I think if you have a plan that is realistic then do what you want. Nobody here knows your exact situation. Weddings are really expensive, even "budget" weddings. You only live once. Generally, you get the chance for your dream wedding once. Do what makes you happy - just don't go around complaining about being broke later - or having regrets. Do whatever will give you the least amount of regrets. Make a plan - stick to that plan.

Don't do a loan. You don't want to start your life in debt!!! Try to avoid credit cards too. We are 17 days out and I've just started putting a few last minute things on cards. It will only be a couple hundred at most. I HATE doing it, but I don't have a choice.

Btw I scrolled too far apparently and I think I resurrected this thing. My bad, it probably could have died last night.

Also, I'm happy that you are taking our advice @OP.

No, just no. Seeing since your wedding is over a year away you should sit down with FH and put yourselves on a strict budget. This will allow each of you to put a set amount aside in a wedding fund. Do not take a loan, don't kill all of your savings. It is truly however, if you get cash gifts, you can always put them back into your savings account to build it back up, but you can't count on it.

If you can't afford to pay for your wedding without taking out a loan or depleting your savings account maybe you should just put your wedding off a little longer. We are having an extended engagement so that we can afford to pay for our wedding without the help of our parents, loans, 401k, or leaving us flat broke. There is nothing wrong with taken more time to have the wedding of your dreams without emptying your pockets completely.