401k Loans Via ATM?

In an effort to get you to squander more of your requirement, the powers that be have created the 401k debit card. This one is good. Basically once you are approved for a 401k loan you then have access to the funds via a debit card.

The interesting piece is how you pay back the loan. Rather than a payroll deduction, you would receive a statement in the mail that you would have to pay just like a regular credit card. Hmm, I always thought the reason they did payroll deductions was to force you to pay it back.

Ok, lets talk about this. There are people in severe credit card debt as we speak and they were using the bank’s money. Can you imagine what this would be like knowing that it is their own money? I think they apprehension would be much less. Also, let’s not forget that once you leave your current position, most 401k plans require that you pay back the loan immediately. Not to mention the fact that you are reducing your overall investment potential by reducing your balance.

This idea has government bail out written all over it. So I guess it works like this… You charge your retirement on items you don’t really need. You can’t pay the bill. Now your retirement is gone. What to do? Get Congress to bail you out of course at the expense of taxpayers. I think they should kill this thought now before people start using this to buy houses that they can’t afford!!!!

Why not create an account like Bank Of America’s keep the change where after every purchase with your debit card they round up and put that change in a retirement account. People let’s focus on saving for retirement not finding easier ways to reduce it!

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