Like Stealing from Your Future Self

It's like stealing from your future self. Your 401(k) is for your future, so if you take from it while you're still working, it could hurt you later. When times are tough, Troy Sharpe of Oak Harvest Financial Group says don't even think of nibbling away at your 401(k). "401(k)s are designed to provide retirement income. Without income, there is no retirement. So one of the worst things you can do it take money out of your 401(k) "

Sharpe says the penalties are big and there are other avenues to help you out of a temporary fix, like a home equity loan or borrowing from a friend. If your problem stems from the Covid-19 Crisis, look into the Cares Act that was passed in March.

Minding Your Money: Don't Sleet on your 401(k)

"You could jeopardize your comfort in your security in your future without having enough money saved up to generate the income to sustain your lifestyle and provide the standard of living you have come accustomed to over the years. Sharpe says borrowing or taking from your 401 (k) can hurt you now as well. "401(k) money isn't made available for emergencies. Those loans have to be paid back through salary which will lower your income today."

Sharpe reminds you --- says if you're being impacted by Covid-19, see how the Cares Act can help.

Don't take from this box!

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