Thursday, December 8, 2022

If you haven't saved enough for an emergency, it's on you, and borrowing money for an emergency when you have it is another stupid thing which is on you

Two stupids don't make a smart.

 

“It’s a terrible idea to take money out of your 401(k),” said Ted Jenkin, a certified financial planner and co-founder of oXYGen Financial, based in Atlanta. ...

Households should weigh all their options for cash before resorting to tapping a 401(k) plan, said Jenkin, a member of CNBC’s Advisor Council.

For example, households without an emergency fund might be able to free up money for a relatively small short-term cash need by canceling or reducing membership plans, or by selling little-used or unneeded items on Facebook Marketplace or a garage sale, he said. A short-term loan or home equity line of credit would generally also be better than tapping a 401(k).

More.

There's nothing like paying a steep price for a mistake to keep you from making it again. Only morons pay twice.

 

What else would you expect someone to say who makes his living selling retirement products?