401(k) Loans: How They Work and are They Right for You

A 401(k) loan can be a quick way to get some cash. When you’re in a financial pinch, it is a low-interest alternative to using a credit card or personal loan. You might use the funds to pay bills, cover a big purchase, or put a down payment on a house.

However, 44% of people who’ve borrowed against their retirement savings regret the decision, according to TIAA-CREF.[1] If you’re considering a 401(k) loan, here’s what you need to know about how it works and how the temporary 401(k) loan covid rules from the CARES Act could impact you.

Yet 44 percent of those who have borrowed against their retirement plan savings regret the decision.

Andrew Comstock, CFAJuly 12, 2021401k, debt

Increasing Income and the Temptation of Lifestyle Creep

When you get a big raise or a significant promotion, you naturally want to celebrate. This may include treating you and your spouse to dinner out or a vacation you have been talking about for years. It might also mean you are going to increase your spending to coincide with your new income growth. Lifestyle creep is something that impacts people in different stages of life. It is particularly important to recognize and avoid before it affects your financial goals.

BlogAndrew Comstock, CFASeptember 15, 2020lifestyle creep, keeping up with the jones, overspending, debt, lifestyle, increasing income, increased income, raise in income, financial planning, financial advisor, wealth management, personal finance, finances, finance, checking, savings