Today, I have a great guest post from a reader, Ashley Patrick. She asked if she could share her story with my audience, and I, of course, had to say yes! This is her personal story about how her 401k loan cost her a ton of money and why you shouldn't take be borrowing from your 401k.
You've been thinking about getting a 401k loan.
Everyone says it's a great loan because you are paying yourself back!
It sounds like a great low risk loan at a great interest rate for an unsecured loan.
But you know the saying “if it sounds too good to be true, it probably is”.
So you're thinking, what's the catch?
I take out a loan without having to do a withdrawal and I pay myself back. I'm paying myself back at a low interest rate right, so what's wrong with that?
Well, I'm about to tell you how our 401k loan cost us $1,000,000 dollars.
You see, there are a lot of reasons to not take out a 401k loan and they all happened to ME! [Read more…]