Don't Ever Borrow From Your 401(k)
Dipping early into your 401(k) is a terrible idea for two reasons, says J.J. Burns, a certified financial planner in Melville, New York. First, the money you borrow will no longer be compounding with interest. If this sounds like no biggie, consider: Borrowing $50,000 at age 35 and paying it back 4 years later will reduce your nest egg by $325,000, assuming historical returns, at retirement. Second, because you repay your loan with after-tax dollars and pay taxes when you withdraw that cash at retirement, you're taxed twice on the same money.
Read more: http://www.menshealth.com/mhlists/how-to-make-money/protect-your-401k.php#ixzz2ewBfB39r
Read more: http://www.menshealth.com/mhlists/how-to-make-money/protect-your-401k.php#ixzz2ewBfB39r
Become a Predator
During a downturn, emotions like guilt or fear can prevent you from making wise purchases. Are you thinking about making an offer on a foreclosure, or buying some cheap furniture or jewelry off Craigslist from a guy who's down on his luck? The herd would call you a vulture, but you're buying from a willing seller—not taking advantage of him. That guy (and even that bank) is just trying to make a clean start. So shrug off the stigma. The economy will thank you.
