For many people, their largest financial asset is their retirement savings in a 401k account. I know it must be extremely tempting to borrow money from your 401K plan in certain situations and not everyone can resist these temptations.
Statistics say that since the year 2000 about 20% of all 401K participants had a loan against their 401K outstanding. Personally I feel that is very scary because not only does it stop people from saving money for retirement for a short period of time, but actually for a prolonged time because the 401K loan needs to be repaid and I think it is safe to assume that additions to the 401K balance are not happening either.[Read more…] about Committing Robbery – Borrow Money from your 401K