The economy has got you down. You are struggling to make ends meet and you worry about money constantly. Then someone reminds you that you can always start borrowing against 401k funds and you wonder if that’s the solution to all of your financial problems. Then you learn that when you pay your loan back, you actually pay yourself interest. What could be better than that? So, you jump on your computer and you go to your 401k manager’s website. You find the loan application, fill it out and prepare to send it off. But something stops you. Suddenly, you aren’t sure whether or not you are doing the right thing. We’re we saving money into … [Read more...]
How to Borrow from 401k Funds in Case of a Financial Emergency
Sometimes, you don’t have any other choice. You are staring at a pile of bills on your counter, your house was flooded by recent rains and you don’t have flood insurance, your wife just fell and broke her leg and you have depleted all of your emergency savings that you were diligently socking away for just such an occasion. Suddenly, your eye falls on your 401k statement and suddenly you know you have to borrow from 401k funds that you haven’t even thought about since you started working for your current company. While most financial experts will advise against taking out a 401k loan, you might not have any options left. If you are facing … [Read more...]