2646: 401(k) Loans: What Are Their Pros and Cons? by Amanda of Women Who Money on Financial Planning
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Episode 2646:
Amanda from WomenWhoMoney.com explores the nuanced landscape of 401(k) loans, offering a comprehensive guide on their benefits and drawbacks. She delves into the mechanics of borrowing against your 401(k), the implications of such decisions, and provides thoughtful insights on why this option, while tempting, should be approached with caution. This episode promises a deeper understanding of 401(k) loans, empowering listeners with the knowledge to make informed financial decisions.
Read along with the original article(s) here: https://womenwhomoney.com/401k-loan-pros-cons/
Quotes to ponder:
"Borrowing from your 401(k) is essentially borrowing money from yourself, but there’s much more to it than that."
"The interest rate for a 401(k) loan is commonly 1-2% more than the prime rate."
"Most people don’t have pensions anymore, so many will rely on the money saved in their 401(k) to get them by in retirement."
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