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Among the absolute worst things to do is to borrow against a retirement plan to pay off unsecured debts such as credit cards. This occurs to me now because the clients I saw today all did this. It hurt them in different ways. Several reduced their take home pay so much they had trouble paying mortgages and car loans. But the last person of the day lost his job after the loan from his 401k and was unable to pay back. He now has a big tax bill. Never borrow from your 401k to pay debts I have never seen a good result.

This entry was posted on Wednesday, March 10th, 2010 at 3:46 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.