Americans Tempted to Take Money Out Of Retirement Savings amid Downturn

Tens of millions of Americans have filed for unemployment benefits in the last six weeks. Many of them being forced to dip into their savings and in some cases retirement money just to survive.

For many, now is as tempting as ever to take money out of your retirement savings. Factors include a pandemic, an economic downturn, and new government legislation in the CARES act, which makes it easier to take out a 401(k) loan. Financial strategist J.P. Maroney, Founder and CEO of Harbor City Capital, says people have it tough, and sometimes don't have a choice. But he says, you should think it through. He says taking money out of your retirement savings should be a last resort.

“People have got to do whatever they have to be able to survive and I would look first to other things. Do you have anything that you could liquidate quickly? Maybe there’s a vehicle,” Maroney said.

Maroney says if you have to dip into your retirement account, make sure you know how much and which bills you need to pay immediately. He advises not to use it on discretionary spending.

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