401K

Should you borrow from your 401K?

Here's a good article, along with a decision chart, at Smartmoney.

Personally, unless I desperately needed the money, and couldn't get it anywhere else, I wouldn't ever consider taking my 401K money. I get my statements and look at them, but I don't think of it as money that is available to me.

I know that girls at work take money from theirs for all kinds of reasons. Vacations, Christmas spending, new cars and debt. I'd rather just put off on those things and save up for them.

The article talks about the main reason, other than need, that I don't borrow and that's loss of compounding. By just leaving my money alone it grows all on it's own.

I think we get a contract raise next month so I'll have to check then and see if that will bump me up to the next increment of dollar amount that the company matches. There are still a bunch of people at work that don't put money into the 401K, I'm not sure why not. The company matches 80% in stock and I look at it as part of my weekly pay.


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