401k Plans and Your Retirement
A 401(k) is a retirement savings plan that is offered by companies to their employees. Employees can save a small percentage of money from their...
Many people believe that borrowing from your 401(k) is okay if you need to get some fast money for emergencies, but dipping into your 401(k) is just a bad idea. Borrowing from your 401(k) might not affect you now, but it will definitely hurt in the long run.
Many people prefer to borrow from their 401(k) because the interest rate on it is lower than on a standard loan. People often believe that it is their own money they’re tapping into so it’s a loan they’re getting from themselves, but in all honesty, you could be ripping yourself off.
The main purpose of your 401(k) is to save up for retirement. If you’re in desperate need of money, then consider all the alternatives before dipping into your 401(k). Your future self will thank you for it.
Want to know more about the best places to roll your 401k?
Check out this video from KIMT News 3, featuring Pam Evans from First Alliance Credit Union.
No matter how dire your emergency is, borrowing from your 401(k) should be considered a last resort. Several alternatives are available, such as taking out a personal loan or refinancing your mortgage.
If you need help, set up an appointment with one of our money navigators today. They'll be happy to discuss your financial situation with you and help you figure out how to make some good money moves to put you on the road to financial success.
A 401(k) is a retirement savings plan that is offered by companies to their employees. Employees can save a small percentage of money from their...
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