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4 Reasons Why Borrowing from Your 401(K) is a Bad Idea

Borrowing money from a 401(K) is unfortunately a pretty common practice. Though majority of people with 401(K) plans do not touch their retirement savings and take out a loan against it, there are enough people who do so, committing a mistake with serious financial repercussions.

Photo Credit: 401(k) 2013

While borrowing from your 401(K) may seem like a good idea at first glance, especially because of the convenience it brings with no credit checks required and a lower interest rate than most commercial loan products in the market, doing so often means a greater financial loss for you. If you’re major reason is to avoid the credit check requirement, then it is not reason enough because there are loan products out there, like title loans, that also do not ask for such requirements. After you’ve read our reasons for staying away from 401(k) loans, then you’ll probably end up doing the same as well.

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Four Reasons Why You Shouldn’t Rely on Social Security When You Retire

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People who have watched the news regularly over the past few years have heard a lot of discourse about the Social Security system in the United States. The truth is that those who have been counting on it to fund their retirement should think twice. Fortunately, people whose physical disability has prevented them from working will likely be safe from the same financial hardships as other Social Security beneficiaries. [Read more...]

Debt Etiquette (What to do when you find yourself in debt)

Pay up! Pay up!

Pay up! Pay up!

Admit it, you are in debt. It’s all right, being in debt, in one way or another, is quite normal in today’s world. Gone are the days when items are paid in full (and in cash). Nowadays, people put purchases on credit or get loans to buy bigger and more expensive items such as cars and houses. Owing money or being in debt, unfortunately, has almost become the norm rather than the exception to the rule. However, this does not give you (or anyone for that matter) an excuse to dig yourself a deeper debt hole, or run away from your obligations. If you owe others: banks, financial institutions, friends, and relatives, money – you have to pay these off.

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Taking out a Home Loan: Banks vs Mortgage Brokers

If you are looking for a lender from whom you can take out a mortgage, then you have two options. You can take a home loan directly from a bank or you can employ the services of a mortgage broker. It is smart to know when to directly get a loan from the bank and when to hire a mortgage loan broker.

Banks don’t charge excessive fees.

If you don’t want to pay extra charges or run the risk of being ripped off by scam brokers, then going to the bank directly is a good move for you. First off, banks don’t have hidden extra charges because they don’t need to pay for any experts. They just give you the flat rate and a single service fee. Brokers get their commission fees, thus they put on some extra charges. If you want to save money then go directly to the bank. [Read more...]

How to protect your retirement fund from inflation

Ideally, you’re setting aside a part of your income for retirement. But is that money enough? Not many people factor in inflation—your money isn’t going to be worth as much 10 or 20 years down the road. And what if you live a particularly long life? That’s a good problem to have, but nobody wants to be 90 years old AND broke. Here are some ways to build a retirement fund that includes those factors—so you don’t just live longer, but live better. [Read more...]

5 Secrets to a Happy Retirement

When people prepare for retirement, they often think about saving money. But financial security or even finding a good retirement community is just part of enjoying the “golden years.” There are many, many retirees who become depressed or discontent, not because they don’t have enough cash, but they no longer have a sense of purpose.

Retirement is a big life change. How do you feel fulfilled when you no longer have a job or a family that “needs” you? How do you deal with the realities of old age that you may not be as mobile or as healthy as you hoped you would be? Here are some life on the secrets to a happy retirement. [Read more...]

How to Pay Off Your Credit Card Debt FAST

The maxim that “credit cards are evil” may not be true per se, but anyone who has experienced being in the quicksand called credit card debt will know just how awful it can be. When used responsibly, credit cards can be very useful. However, once you start accumulating credit card debt, you might be surprised at how easily things can get out of control.

If you are already facing serious issues with your credit card debt, then it is time to take drastic measures. You may not go to jail because of your credit card debt, but do you really want to keep paying for that debt for the rest of your life? In serious cases, paying the minimum – or a little over the minimum – just will not cut it. So what should you do? What are those drastic – or maybe not-so-drastic – measures? [Read more...]

How to Prepare for Retirement

Retirement is something that we all look forward to, and for those who work hard for practically every day of their lives, retirement serves as some sort of reward. However, unless you were born rich or you receive an inheritance somewhere along the way, it is absolutely necessary for you to make sure that you have enough money to last you for the rest of your non-working life.

We all know that we need to fund our retirement, but how to do this exactly is another story. If you are young, you still have a long way to go and a long time to prepare for retirement. If you are nearing retirement age, it still is not too late to prepare for this period in your life. What can you do to make sure that you will be comfortably off when you retire? Take a look at some of these things that will help you do just that. [Read more...]

Things You Should Know About Your 401(k)

Retirement is something that working people look forward to. Indeed, many of us dream of retiring as early as possible so as to enjoy our lives without working our bums off. In the United States, the majority of workers prepare for their retirement by putting money into 401(k) plans while they are still part of the workforce. However, it cannot be said that the average person investing in a 401(k) plan knows everything about it. Let me ask you, how much do you know about your 401(k) plan?

Perhaps you may say not much. Maybe you’re thinking – pretty much, actually. Whichever the case, I will not assume that you know all that you need to know about your 401(k) plan. Let me go one step further and outline some important facts that you need to know about 401(k) plans. Who knows, you might pick up a useful thing or two? [Read more...]