Home equity loans are an option vs tapping your 401k
Sometimes you don’t have a choice as people lose jobs and other issues arise. However, it should truly be your last resort to tap your 401k for the emergency funds you need. A tax saving idea would be to obtain an home equity loan where you have the ability to write off the associated interest payments. One risk, however, would be if the market were to collapse and you owe more than the house is worth. So be careful and remember, anything you can do to preserve your 401k will reap you healthy rewards when it comes to retirement, not to mention you have compound interest working for you.
For more information on 401k loans or hardship withdrawals check out my article here.
On Saving Money on Food: Be Extra Vigilant
Save thousands in college tuition and graduate early, here's how.
Will Congress raise the age at which you can withdrawal from a 401k or IRA without penalty?
Gold prices at their highest level ever, or are they really?
ThinkorSwim review and company profile
ChoiceTrade Broker Review and promotions
SogoTrade Broker review
TradeKing review and promotions
Charles Schwab broker review
Futures and options trading; What they know and you don't
How do payday loans and cash advances work?
How does a debt consolidation loan work?