401(k) withdrawals increasing – WHY?
One of the stories making national news right now is how 401(k) withdrawals have increased drastically. As the article reflects, the main reason for these increases is people paying their mortgages.
I can’t begin to tell you how much this disappoints me. I’m not going to repeat my entire blog about strategic default, below, but I will say this. Loan modifications aren’t happening. If you think the bank will agree to a loan modification if you can “hang on” a little longer (by paying your mortgage with 401(k) funds), you’re probably waiting for Santa Claus. In other words…
Before you pillage your retirement account, and ruin your future, to keep paying a mortgage you probably can’t afford (on a house worth far less than you owe), I strongly suggest you re-evaluate your situation.
In my view, it’s rarely a good idea to use retirement funds on monthly mortgage payments.
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