You might be thinking of cashing out your 401k when leaving a job. It can be especially tempting to do so in two circumstances: when there’s “only a little bit” in the 401k, and when there’s a whole lot of money in it. If you’re doing a hardship withdrawal as a last resort — such as to stave off foreclosure or feed your family — that can be another matter, but there are still things you should be aware of. » Read more
Category Archives: Retirement
A 401k is a great benefit, especially if your company matches a portion of it. Saving for retirement is extremely important, and a 401k allows you to do that pretty painlessly. But what happens to the money in it when you leave your job before retirement age, either voluntarily or due to a layoff? » Read more
My high school German teacher hated it when people were late to class. But, there always seemed to be one smart-aleck student who would come in late anyway, announcing “better late than never”.
“But better never late”, my teacher would reply.
That same idea can be applied to funding retirement. » Read more
When push comes to shove during a financial emergency, that retirement money you’ve socked away can look pretty darn tempting. And for many people who either don’t have an emergency fund or have already exhausted it, that money may be the only (relatively) easily available lump sum they’ve got.
But that doesn’t mean you should automatically drain your retirement fund. Yes, you may be desperate to stave off foreclosure or pay creditors who are hounding you, but using your retirement money to do so may not the best idea — especially if you’re doing so in a last-ditch attempt to preventing having to file for bankruptcy. Here’s why. » Read more