In this video I go over 401k loans, 401k loan repayment, how to borrow from your 401k, 401k withdrawal strategies. Should you use a 401k loan? how much can I borrow from my 401k?

For a FREE Medicare Plan Review to find out if you picked the right plan for 2020:

To find a Health Insurance Plan in your Area:
To Schedule a Medicare Review with Matt:
To sign up for a Health Matching Account:

For more resources:

Link for Wade PFau’s Book: Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement

Earn 2 Free Stocks (valued at up to $1400) when you deposit $100:
To see what I am using to film please see the amazon links below:

This is the WebCam I use for Online meetings and Screen Recording:
Logitech 930 WebCam:
This is the Headset I use for Online Meetings and Screen Recording: Sennheiser Office Runner Headset:
This is my Main Camera: Cannon M50:
This Main lens Sigma 16mm 1.4 fStop:
This is the TriPod Smart Phone Converter:
This is the Main TriPod:
This is the Mini Desk TriPod:
This is the Mic Mount for Desk:

NOTE: This description may contains affiliate links to products we enjoy using ourselves. Should you choose to use these links, this channel may earn affiliate commissions at no additional cost to you. We appreciate your support!

The information provided on this website is for educational purposes and does not intend to make an offer of solicitation for the sale or purchase of any specific products, investments, or investment strategies.
Financial planning and investment advisory services offered through Sequent Planning, LLC, a Registered Investment Adviser (RIA). Advisors are registered with Sequent Planning as independent contractors and not employees of Sequent. Sequent Planning is wholly owned subsidiary of Senior Market Sales (SMS). Insurance products, Legal, Tax and Accounting advice are not offered through Sequent Planning.
This site is published for residents of the United States only. Sequent Advisors may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every Advisor listed. For additional information please contact the Advisor(s) listed on the site.
Additional information about Sequent Planning and our Advisors is also available online at www.adviserinfo.sec.gov or You can view our firm’s information on these websites by searching for Sequent Planning or by our firm CRD number 160381…(read more)

LEARN MORE ABOUT: 401k Plans

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

401k Loans: How to Borrow From Your Retirement Savings

Saving for retirement is an essential part of financial planning. One of the most common ways individuals save for their future is through a company-sponsored 401k plan. 401k accounts offer many benefits, including tax advantages and the possibility of employer matching contributions. But did you know that in certain circumstances, you can also borrow money from your 401k? While this option might seem enticing, it is crucial to understand the rules and implications of taking a loan from your retirement savings.

Before delving into the details, it’s important to note that borrowing from your 401k should only be considered as a last resort. A 401k loan should not replace emergency savings or other forms of borrowing, such as personal loans or credit cards. It’s essential to exhaust all other options before tapping into your retirement savings.

So, how does borrowing from a 401k work? A 401k loan allows you to borrow a specific amount of money from your retirement account, which you must repay with interest. The loan is not subject to income tax or penalties if you follow the guidelines set by the Internal Revenue Service (IRS). However, it is essential to understand the potential risks and limitations before taking this step.

First and foremost, borrowing from your 401k reduces the amount you have invested for retirement. This means that you miss out on potential investment growth over time. It’s crucial to consider the impact of reducing your retirement savings and ensure you can still meet your future financial goals.

The IRS imposes limitations on the maximum amount you can borrow from your 401k. Generally, the maximum loan amount is $50,000 or 50% of your vested account balance, whichever is less. Additionally, most plans require a specific minimum loan amount, often around $1,000. These restrictions aim to prevent individuals from using their 401k as a constant source of borrowing.

Another key consideration is the repayment terms for a 401k loan. Typically, you must repay the loan over a period of five years, although some plans may allow for longer terms if the money is used for home purchases. Your employer will deduct the loan payments directly from your paycheck, similar to how contributions to your 401k are deducted. It’s essential to keep in mind that if you leave your job before repaying the loan entirely, you may be required to repay the remaining balance in a short period, usually within 60 days.

One potential advantage of borrowing from your 401k is that the interest you pay on the loan goes back into your retirement account. This means you are effectively paying yourself back rather than paying a lender. However, it is important to note that the interest rates on 401k loans are usually lower than traditional loans or credit card rates, which could mean missing out on potential savings.

While it is possible to borrow from your 401k, it is essential to approach this option with caution. It should only be used as a last resort and after considering all other potential avenues for borrowing. Remember, your 401k is designed to provide financial security during your retirement years, and reducing your savings now may lead to significant challenges in the future.

Consulting with a financial advisor before making any decisions about borrowing from your 401k is highly recommended. They can help you evaluate your personal financial situation, understand the potential risks, and explore alternative solutions to meet your short-term financial needs without jeopardizing your long-term retirement goals.

A Guide on Borrowing from Your 401k: 401k Loan Essentials appeared first on Inflation Protection.