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WSJ: Most Americans Haven’t Planned for Retirement and Other Areas of Concern
This is truly sad....despite the fact many have the opportunity to put themselves on the right path, but they choose to do otherwise. In the private sector, define pension plans are mostly replaced by define contribution plans, i.e. 401(K), and are all workers are on their own to manage their retirement fund.
The ability to borrow against one's 401K is for emergency only. Otherwise this is no difference than taking out home equity loans for vacation and car. When these individuals leave their jobs voluntarily or not, they are required to pay back the full amount immediately.
The difference is that you are paying the interest on the loan to yourself rather than a bank, finance company, etc.. It's still hardly ever worth it but for some there may be no other choice.
Comments
Aren't "most Americans" trying to stay afloat?