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I'm on a big step to getting ready to liquidate my after-tax investment account,

clean out my savings besides the $1,000 baby emergency fund to attack some personal loans.

My question to you is, would it be worth it to take a loan

out of my 401k just to clear out all the personal loans since the interest on the 401k loan is

essentially paid to myself.

No.

How much debt do you have?

Personal loans about 22,000, and then steering loans about 30,000.

Okay, and how much are all these after-tax investments going to create when you liquidate them?

Only about $6,000 and another $6 or $7.

Okay.

So it brings your debt down to $40 if you do that.

From $52,000, yeah.

So you've got $40,000 in debt.

What's your household income?

Right around $155 before tax.

Good. Okay. All right.

The problem with the 401k loan is several fold.

One is, yes, you do pay yourself back the interest, but you unplug that portion of the investment from the mutual funds that would have been earning you 12 this year, maybe even more percent.

So maybe you would have made 15, but you paid yourself five instead.

Bad idea.

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