Why You Shouldn't Dip Into Your 401k Right Now

When it comes to your 401k and dipping into it to help you weather a storm, it should be your absolute last resort for a number of reasons.

Number one, when you take money out of your 401k at a time like this, you are making a withdrawal at a loss,

or taking a loan out at a loss. If you are to take a 401k loan and you get let go or fired,

then that loan is due within a certain amount of time. And if you're unable to pay it back, then there are penalties that you have to pay in addition to income tax.

So what you think you'll be getting from your 401k is actually going to be a lot less than you anticipate.

Despite what's going on right now, there is the opportunity for you to do things that you can keep within your control. Think of it like a reset of your life.

Right? There's opportunities for you to change habits, build new habits, and find creative ways to do things differently and also more frugally.