tst123@lemmy.world to News@lemmy.world · 1 year agoMillions of older workers are nearing retirement with nothing savedwww.msn.comexternal-linkmessage-square96fedilinkarrow-up1261arrow-down14
arrow-up1257arrow-down1external-linkMillions of older workers are nearing retirement with nothing savedwww.msn.comtst123@lemmy.world to News@lemmy.world · 1 year agomessage-square96fedilink
minus-squareAA5B@lemmy.worldlinkfedilinkarrow-up1·edit-21 year agoNo. – employer matches typically have a vesting period where it’s not yours to withdraw — actual withdrawal means paying the taxes you skipped plus a penalty – loans can be useful, but you have to pay yourself back and meanwhile that money is not invested. – loans have a low interest rate, so your loan to yourself is making almost nothing compared to if it was left in an investment – loans need to be payed back immediately if you leave the company for any reason, otherwise it’s an early withdrawal with all those taxes and fees
No.
– employer matches typically have a vesting period where it’s not yours to withdraw
— actual withdrawal means paying the taxes you skipped plus a penalty
– loans can be useful, but you have to pay yourself back and meanwhile that money is not invested.
– loans have a low interest rate, so your loan to yourself is making almost nothing compared to if it was left in an investment
– loans need to be payed back immediately if you leave the company for any reason, otherwise it’s an early withdrawal with all those taxes and fees