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  • February 19, 2008 at 9:50 AM #11859
    Borat
    Participant

    Another great “innovation” from our financial industry…

    Washington Times – 401(k) debit draws red flags

    From the article:

    “We have seen an increase in loans, and we have seen an increase in hardship withdrawals from 401(k)s,” Mr. Ritter said. “Anecdotally, some of it seems to be related to people paying mortgages.”

    401K withdrawals will keep the bubble floating a bit longer IMO. People are gonna raid these to keep their lifestyle going rather than face the music.

    February 19, 2008 at 11:05 AM #155569
    Allan from Fallbrook
    Participant

    One of the other points the article made was the egregious cost of funds for tapping into the 401k. In most instances, you are paying 30 – 40% to access the funds (getting $6 to $7 for every $10 withdrawn), due to fees and penalties.

    It also pointed out that the people using the funds are, in essence, depleting their retirement funds and thus are lowering their own future standard of living. I think if there was ever a question as to the average American’s addiction to debt and consumer spending, this should answer it.

    February 19, 2008 at 11:05 AM #155851
    Allan from Fallbrook
    Participant

    One of the other points the article made was the egregious cost of funds for tapping into the 401k. In most instances, you are paying 30 – 40% to access the funds (getting $6 to $7 for every $10 withdrawn), due to fees and penalties.

    It also pointed out that the people using the funds are, in essence, depleting their retirement funds and thus are lowering their own future standard of living. I think if there was ever a question as to the average American’s addiction to debt and consumer spending, this should answer it.

    February 19, 2008 at 11:05 AM #155854
    Allan from Fallbrook
    Participant

    One of the other points the article made was the egregious cost of funds for tapping into the 401k. In most instances, you are paying 30 – 40% to access the funds (getting $6 to $7 for every $10 withdrawn), due to fees and penalties.

    It also pointed out that the people using the funds are, in essence, depleting their retirement funds and thus are lowering their own future standard of living. I think if there was ever a question as to the average American’s addiction to debt and consumer spending, this should answer it.

    February 19, 2008 at 11:05 AM #155872
    Allan from Fallbrook
    Participant

    One of the other points the article made was the egregious cost of funds for tapping into the 401k. In most instances, you are paying 30 – 40% to access the funds (getting $6 to $7 for every $10 withdrawn), due to fees and penalties.

    It also pointed out that the people using the funds are, in essence, depleting their retirement funds and thus are lowering their own future standard of living. I think if there was ever a question as to the average American’s addiction to debt and consumer spending, this should answer it.

    February 19, 2008 at 11:05 AM #155948
    Allan from Fallbrook
    Participant

    One of the other points the article made was the egregious cost of funds for tapping into the 401k. In most instances, you are paying 30 – 40% to access the funds (getting $6 to $7 for every $10 withdrawn), due to fees and penalties.

    It also pointed out that the people using the funds are, in essence, depleting their retirement funds and thus are lowering their own future standard of living. I think if there was ever a question as to the average American’s addiction to debt and consumer spending, this should answer it.

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