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.
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 red 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 25 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
download our 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 red button to get started.
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