Money Magazine reports about “leakage,” using 401(k) or IRA savings to pay for anything other than retirement, which  has become something of a bad word in the personal finance world. One policy wonk, Matt Fellowes, the founder and CEO of HelloWallet, took the metaphor even further when he wrote that “the large rate and systematic quality of the non-retirement uses of DC [defined contribution] assets indicates that these plans are now being ‘breached.’ This is a massive systematic problem that now affects 1 out of every 4 participants, on average—which is more like a gaping hole in the DC boat than a pesky ‘leak.’

Read full article at Borrowing From Your 401(k) Might Not Be Such a Bad Thing | Money.com.

 

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.