Don’t clean out that 401k!

By admin • May 19th, 2010

When times get tough, especially if coupled with a job loss, it can be tempting to go to any measure possible to survive.  Paying the mortgage (if you are going to keep the house), eating and fueling the cars are necessities, but the absolute worst “solution” for keeping creditors at bay, short of borrowing from the neighborhood loan shark, is cashing in your retirement.  Retirement accounts, even large ones, are usually protected in bankruptcy.  Long after the credit card debt is discharged, the retirement accounts remain.  Pulling retirement to pay unsecured debts is like suicide, a permanent solution to a temporary problem.  Never use retirement funds without consulting an attorney to develop a plan that will take you through this crisis and into the future.

 

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