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Chicago, IL —
So long to the 401(k).
That's what many Americans are doing as the economy continues to create significant issues for millions.
This USA Today story this morning looks at the number of folks who took hardship withdrawls from their 401(k) accounts in the last quarter. The story says that 2.2 percent — which is a record — took hardship withdrawals in the second quarter. And nearly 50 percent of those who took a hardship withdrawal a year ago opted for another one in the second quarter.
An expert quoted in the story says the move is dumb, because you can always get a loan for education, but never a loan for retirement.
This is a good money story to localize.
• Talk to a financial planner about options that are out there for folks who are considering tapping into their 401(k). What other areas of your finances should you empty before heading into your 401(k)?
• The USA Today story says that the threat of foreclosure was the No. 1 reason why folks tapped in their 401(k). What reasons are financial planners hearing and what kind of advice do they give based on the responses they're hearing?
• The story notes that 401(k) loans are increasing as well. Do financial planners also see these increasing, as well?
So long to the 401(k).
That's what many Americans are doing as the economy continues to create significant issues for millions.
This USA Today story this morning looks at the number of folks who took hardship withdrawls from their 401(k) accounts in the last quarter. The story says that 2.2 percent — which is a record — took hardship withdrawals in the second quarter. And nearly 50 percent of those who took a hardship withdrawal a year ago opted for another one in the second quarter.
An expert quoted in the story says the move is dumb, because you can always get a loan for education, but never a loan for retirement.
This is a good money story to localize.
• Talk to a financial planner about options that are out there for folks who are considering tapping into their 401(k). What other areas of your finances should you empty before heading into your 401(k)?
• The USA Today story says that the threat of foreclosure was the No. 1 reason why folks tapped in their 401(k). What reasons are financial planners hearing and what kind of advice do they give based on the responses they're hearing?
• The story notes that 401(k) loans are increasing as well. Do financial planners also see these increasing, as well?
