Go Ahead, Raid That 401(k)
Laid-off journo struggling to make ends meet? Underpaid flack living on ramen and PB&J? A new paper from the Federal Reserve says it’s sometimes OK to dip into your 401(k) savings.
New Evidence on 401(k) Borrowing and Household Balance Sheets by Fed economists Geng Li and Paul A. Smith maintains that, in some circumstances, “401(k) borrowing can, indeed, be advantageous to household balance sheets … and can be significantly cheaper than other types of borrowing — particularly credit-card borrowing, which frequently carries interest rates of well over 15 percent.”
The
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