Don’t crack the nest egg
As far as the markets go, “these are fast becoming hard times,” says Robert Powell in MarketWatch, “and hard times can lead to bad decisions.” Common bad decisions include getting a reverse mortgage or 401(k) debit card, or cashing in a life insurance policy. Unless you absolutely have to, “think twice” before raiding your nest egg like that. All of those moves have significant costs that could trash your “most valuable assets.” With your 401(k), you should be contributing, not withdrawing. Taking withdrawals from your 401(k) incurs extra tax penalties and steep opportunity costs. Plus, if “as a last resort, you file for bankruptcy,” creditors can’t touch your 401(k) or the first $1 million in your IRA.
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