8 Reasons To Never Borrow From Your 401(k)

AAA

Pundits claim that your 401(k) balance is a less expensive way to borrow money because the interest rate charged is generally lower than the rates on a commercial loan. They also cite the fact that when you repay the loan, you are paying yourself back with interest, instead of paying a bank. Despite these claims, borrowing from your 401(k) goes against almost every time-tested principal of long-term investing. Here we look at eight major reasons why borrowing from your 401(k) is a bad idea.
Related Articles
  1. Investing Basics

    2. Start Saving

    These 10 steps will help you reach your retirement goals.
  2. Retirement

    4 Ways To Maximize Your 401(k)

    401(k) plans have become the bedrock of America’s retirement savings. Here are four steps to help your 401(k) meet your goals.
  3. Options & Futures

    10 Steps To Retire A Millionaire

    Making this dream come true takes work, but it's well worth the effort.
  4. Retirement

    Why Your 401(k) Is More Important Than You Think

    If you are thinking of dipping into your 401(k), think again. It’s one of your best sources of retirement income.
  5. Retirement

    6 Ways To Maximize The Value Of Your 401(k)

    From matching employer contributions to proper asset allocation, we'll tell you how to get the most out of your plan.
  6. Retirement

    Is Your 401(k) Being Mismanaged?

    401(k) plans managed by the wrong people can be hazardous to your future!
  7. Financial Advisors

    Do These Things To Trim 401(k) Expenses

    You might need to be vigilant and a bit creative to lower overall 401(k) expenses, but the payoff can be big. Here's a quick guide.
  8. Retirement

    Top 10 Mistakes To Avoid On Your 401(k)

    Funding and managing your 401(k) is critical to a financially healthy retirement. Avoid these top 10 mistakes.
  9. Investing

    10 Ways to Effectively Save for the Future

    Savings is as crucial as ever, as we deal with life changes and our needs for the future. Here are some essential steps to get started, now.
  10. Retirement

    Eyeing a 401(k) Loan? There Are Better Options

    A 401(k) loan may sound good but it's not worth the risk. Here are other options that allow you to leave your retirement funds untouched.

You May Also Like

Trading Center