Understand Borrowing From Your 401k
Understand borrowing From Your 401k
Have you considered borrowing from your 401k? Maybe you have high medical bills, or your kids are about to start college and you need to find a way of paying their tuition bills. Maybe you're about to purchase your own home and you need the money for a down payment. Or maybe you're thinking about borrowing from your 401k, not because you want to purchase a home but because you are at risk for being evicted.
All of those financial hardships are reasons that the government considers reasons for borrowing from your 401k. Although borrowing from your 401k is acceptable under these circumstances, it still comes with taxes and penalties.
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Because of the taxes and the 10 percent penalty that you will have to pay for borrowing from your 401k, you may be discouraged and uncertain. Because of the penalties and the taxes that need to be paid, it is important that you look at a variety of other ways to get the money that you need before borrowing from your 401k.
But what other ways of getting the money that you need are there? You can look into bank loans. You can use credit cards. But what if the only savings that you have is the money that you have put towards you retirement?
If the only savings that you have is for your retirement, and you are thinking about borrowing from those savings -whether a 401k account or another type of IRA -you need to be aware of your options. More than that, you need to understand how making a withdrawal from your retirement savings now will affect the income that you have available when you retire.
How can you learn more about your savings and investments? One way is to click the blue button at the bottom of this page and to download our free retirement calculator.
We're offering you this powerful, easy to use, free tool because we know that when you are more aware of how your savings and investments work, you will be better able to understand what your financial future will look like. When you understand your financial future, you will be able to make more informed decisions about borrowing from your retirement savings.
With our free retirement calculator you will be able to:
Study the way your 401k and other savings accounts, as well as your stocks, bonds and mutual funds, have performed over the course of time;
Get projections for how your savings and investments will continue to perform over the next 30 years;
Understand the way that interest rates and inflation will affect the savings and investments that you have;
Determine which small changes to your savings and investment strategies will affect the income that you have available when you retire; and,
Look at the ways in which withdrawals you make from your retirement savings will affect the income that you have available to you after you have retired.
And because we know that borrowing from your 401k or any of your retirement savings accounts can be a scary thing, we want you to be sure that you're making the right decisions. That's why, when you Access Bob's free retirement calculator, you will also receive a free one-on-one consultation with a financial advisor.
During that consultation, you'll be able to ask the questions that you have -both about borrowing from your 401k and about your financial planning in general. You'll get the answers that you need so that you can decide whether or not borrowing from your retirement savings is a good choice for you.
But even more than that, you'll be able to discuss other savings and investments strategies, other financial plans that will ensure you that -regardless of the financial hardships you may have now -you'll be able to achieve all of your financial goals.
So what are you waiting for? Why not take advantage of our research, understand your savings and investments and learn how you can put your retirement savings to work for you -both now and in the future? All it takes is a click of the blue button below to get started.