It seems like a horribly bad idea under most circumstances. Since many people have already tapped their home equity for low interest loans, does it make much sense to take a loan out on your future? Maybe, if you need to pay off a huge high interest credit card debt. 401(k) debit draws red flags Washington Times A 401(k) debit card?! It's not so bad Just Put It on My 401(k) Debit Card The 401k Debit Card: Probably One of the Worst Ideas Ever
I don't think this is really a problem. It's a well known fact that people are always responsible when it comes to personal spending OK now, seriously, they let people borrow from their retirement fund?
Yep, I just heard about this myself this morning. It is a very dangerous thing for people that don't have much foresight or responsibility. I think it could be useful to pay off unexpected medical bills or something very high interest, but it shouldn't be made this easy. There should also be stipulations that they will immediately begin paying it down.
No wonder the world is full of debt! Banks just giving out money to tom, dick and harry! Its crazy there should be a limit!!
People should have other options instead of lending from their retirement funds , it is dangerous some of the people out there spend the borrowed money like their money and they will be miserable in the future. Goverments are here to protect their citizens on situations like this but it is seen that some of the goverments act with the corporations.
And some people want to have a private retirement option, as apposed to Social Security. There's far too many people out there are bad with their money and don't plan for their own future.