Borrowing money against your 401K is typically not a good idea because if you leave your employment prior to full repayment, the outstanding balance becomes due and payable immediately. Therefore, ensure any 401K loan can be repaid before you leave your job. Loan amount will be added as a type…
Category: Debt
Fed Surprises and How They Affect Your Finances
The U.S. dollar rose sharply higher after the U.S. Federal Reserve announced its first interest-rate increase of 2016 and signaled that it expected to increase rates 3 more times in 2017. Stocks traded sharply lower, while yields soared. The 2-year Treasury yield, which was the most sensitive to the Fed,…
Is Paying off the Student Loan More Important? Or Saving for Retirement?
My personal opinion? Treat it like any other debt. Get rid of it as soon as you can. You can choose the order of priorities to pay off a student loan, or to save for retirement. Some argue that saving for retirement is more important because of the benefits of…