Nearly a third of all Americans don’t think they’ll have enough money to retire. Especially if you tap into your 401k account. I’m Chip Cummings, with today’s Chip Tip.
Times are tough for a lot of people, and it may be tempting to go for a quick loan from your 401k plan. You’ll pay it back when times are a little better, right? Well, statistically – you’re wrong. Most people don’t pay it back – and even when you do – the cost is far more than you might realize – further jeopardizing your retirement down the road.
Too many people treat their 401(k) plan like a savings account, and withdraw money when needed. Some accounts even offer a debit card for convenience! How nice…. Not a good idea…
Not only could you possibly get taxed on the money, but if it’s not there – it has no chance to grow over the years.
Put the money in – and leave it alone. Borrowing is a sure way to short circuit your retirement plans, and it won’t be there for a rainy day – when it’s pouring….