Get smart with your money
By Liz Weston
If anyone tells you a 401(k) loan is a cheap way to borrow, they are both right and very, very wrong.
401(k) loan interest rates are low. But the way many Americans repay them spells disaster.
In my latest for the Associated Press, how a reckless 401(k) loan could turn out to be the most expensive money you’ll ever borrow.
When house hunting, the price of homeowners insurance probably isn’t top of mind. But homes…
Federal regulators just smacked the student loan servicer formerly known as Sallie Mae with a…
Any 401(k) can help you save for retirement. A great 401(k) allows you to save…
Wall Street has done a remarkably thorough job of brainwashing investors into rolling their old…
The monthly payment on a five-year, $10,000 loan at 5.75% is only $192. I’m not sure why it makes sense to assume that Jessica would drop her monthly contributions from $300 to $0 in order to make a $192 monthly payment.
Some plans don’t allow contributions when there’s an outstanding loan. When they do, borrowers still have to earn more than the amount of the repayment amount, since it’s after tax, and that could impact how much they save. You can use the calculator to try out different scenarios: http://www.ncpa.org/401/d401kwa1.php