Thinking of dipping into your 401(k)? Think again.
May 14, 2008
I just read a great article by Lauren Tara LaCapra on today’s TheStreet.com the consequences of withdrawing money from your 401(k) when you’re in your 20’s or 30’s.
I just wish she wrote it – and I read it – 25 years ago instead of today.
You see, dipping into my 401(k) during my 20’s and 30’s wiped out my nest egg - TWICE.
Just like the young people Lauren writes about who view their 401(k)s as kind of a regular saving account, I was short-sighted about my finances and my retirement plan. I lost all of those years of tax-deferred compounded interest. UGH!! It kills me that I was so stupid.
If you’re thinking of taking out money out of your 401(k), and you’re younger than 59 1/2, please read Lauren’s article. It could save you more than just a few bucks. It could save your retirement.
Great post. I wish I read that article a few years ago before I hit up my 401k.