What Are the Positive Sides to 401k Loans?
February 21st, 2012
Even with all of the downsides to 401k loans, there are of course reasons that they appeal to people. The first reason being that you’re borrowing from yourself, and not an instituition. This alone just puts people at ease. You also get a much lower interest rate, and the interest you do pay goes back into your account, so you’re just saving up more for retirement. The lower rate not only saves you money, but you’re saving money in the process. If you need money and see your retirement savings account as the way to get it, this is also much preferred to cashing in 401k savings.
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