Consolidating loans with your spouse
Ideally, when it comes to your 401(k) plan, you should have a steady stream of money going in rather than out.If you do, however, decide to take a loan from your plan, or a financial need makes a hardship withdrawal a necessity, be sure you understand the potential tax consequences of doing so.If you graduate from college and go to work with an employer that will provide matching funds for any investment you make in a company sponsored 401(k) or 403(b) you would be an idiot if you did not participate and take the free money they are offering you.When dealing with student loan debt that is just unaffordable you have to change your mindset about your debt and reorder it.Other situations that are covered by the safe harbor exception include: .) If you’re not in dire financial straits but still want to take cash from your plan, a 401(k) loan is the other option.
Loans are usually repaid with interest, which can make up somewhat for the earnings you’re losing by not leaving the money in your plan.More and more student loans are becoming the most problematic debt anyone can own.At some point in the past couple of decade student loans when from a leg up to financial slavery.Well if you are struggling to make your regular student loan payments because you have other financial obligations in the way, reducing those obligations might just be the more reasonable and more logical thing to do, even though to do so might be emotionally hard to face.By delaying or postponing the rapid elimination of your student loan debt quickly you can easily waste early years that are critical to saving for retirement. In this day and age with there being significant doubt if public programs like Social Security will be able to adequately assist you when you are old and unable to work, your retirement needs to be a primary consideration in dealing with your debt. Let’s say you graduate from college at 22 with student loan payments of 0 a month.
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Assuming you will retire at age 70, you would have $3,697,717 saved.