But a straight bigger problem is the chance that you are going to start to see your k that is 401 as one thing apart from a retirement plan. The 401(k) can begin to look something more like a credit card or even a home-equity line of credit if you get very comfortable using loans in order to cover short-term needs.
Should that take place, you could become less worried about the program’s long-lasting performance and valu вЂ” for your retirement purposes вЂ” and present it a concern into the plan as that loan supply. As an example, you may lose interest in building the balance of your plan much beyond $100,000 since you can borrow no more than 50% of your plan’s vested balance, to a maximum of $50,000. Continue reading