I Need My 401k Money Now should I Borrow from 401(k)?

Question

The financial media have coined a few pejorative phrases to describe the pitfall of borrowing money from a 401(k). 

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Comments

The most important thing is don't borrow money. Always find a way to not borrow money, I didn't say that don't borrow money. 

Answer 1

Borrowing from 401k is a good and also a bad idea. If you borrow from 401k, you will get deeper in debt. Imagine, you work hard and you are get taxed by the government to fund the 401k, so it means you are borrowing your own work hardened money. And if you borrow money from 401k, the moment you spend your borrowed money, you will get taxed again. 

The most important thing is don't borrow money. Always find a way to not borrow money, I didn't say that don't borrow money. 

Borrowing money is not the solution to your Financial Problem. Always solve your problem, don't escape it.

Answer 2

I have not heard about this. It seems promising for those people who are having financial problems at present. With this pandemic situation, we are struggling to earn a living. I hope it is a good catch and no one will be in a difficult situation.

Answer 3

Do you really need this money so badly? Is there no other avenue you can get money without borrowing. Borrowing will make you indebted and you will pay with interest.

My advice is you borrow if it is very necessary. Borrow if you are investing and not just to spend the money. It is not logical.

Answer 4

I have not heard about this before. But I guess it will helpful in this pandemic situation. Because everyone is facing financial crisis nowadays. If it is emergency, Definitely you can go for it.

Answer 5

The most important thing is don't borrow money. Always find a way to not borrow money, I didn't say that don't borrow money.