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Don’t Rob Your Retirement (Video)

Don't Rob Your Retirement

Borrowing from your 401(k) is robbing you of a comfortable retirement. Many folks treat their 401(k)’s like a personal ATM. Why is it a bad idea to withdraw cash via a 401(k) loan from your retirement to pay for things like your kids’ college, home improvement projects, a vacation, or pay off debt? You’re essentially robbing your future self of a comfortable retirement when you do this.

401k loans are triple trouble!

  • First, you have a loan payment coming directly out of your paycheck. For many people, that causes them to reduce the amount of money they’re contributing to their 401k.
  • Second, the amount that you borrow is unplugged from your investments and you’re missing out on growth.
  • Third, if you leave your job – whether you quit, get fired, or laid off – you will owe the balance of your 401k loan within 60 days or face penalties and taxes.

So please don’t rob your retirement by taking out a 401k loan!

Spread the Word!
Christine Luken
 

Click Here to Leave a Comment Below 6 comments
Nicky Omohundro - September 9, 2016

These are all good reasons to not withdraw from your 401k. We treat ours like a closed account and don’t withdraw from it.

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Kim - September 9, 2016

We had to borrow from our 401K once (dire emergency) and it was horrible. We regretted it.

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Helene Cohen Bludman - September 9, 2016

I have always heard that, and fortunately we have bee able to leave our 401K alone.

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Cristine - September 9, 2016

Having money smarts is so important so many people don’t plan for the future.

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Rebecca Bryant - September 11, 2016

We don’t have a 401K and I think We may regret it soon. That said never borrowed on it.

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katrina gehman - September 11, 2016

great information. i will have to pass this along to a few other people i know.

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