Using Your 401k Account to Pay Down Debt is Not Smart

by | Jan 28, 2013 | Videos, Financial Planning

In this video from Mullooly Asset Management, Tom and Brendan discuss why using your 401k account at work to pay down debt might not be a smart decision. Last week Tom and Brendan started this discussion, and they wanted to carry it over into another week. 401k accounts have become the only funding that some people have for their retirement, and taking a loan from something that serious seems risky. Tom and Brendan discuss an alternative to taking a loan from your 401k account in this video. The alternative is also risky, but if you have enough discipline it could pay off for you. Another question that clients frequently ask is whether they should contribute to their 401k account or their children’s college fund. We always remind our clients that you can take a loan for a college education, but you can’t take a loan for your retirement. Tom and Brendan will discuss 529 plans and Custodial accounts, the primary college funds, in a future video. There is a lot to learn in this Mullooly Asset Management video, so be sure to tune in!

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