An emergency can strike when you least expect it. Maybe your car breaks down, or medical bills start piling up. Whatever the reason, it can be frustrating, especially if you are short on funds.
Situations like that may make you wonder if cashing out your 401(k) is the right move. Typically, people have a significant amount of money in a 401(k), so tapping it when disaster strikes may seem reasonable.
But, there are caveats to cashing out your 401(k), and the penalties can be costly. If you are wondering whether cashing out your 401(k) is the right move, here’s what you need to know.
Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals