401(k) Loan Alternatives
Consider an unsecured personal loan as an alternative to borrowing from your 401k. Here's why:
- Personal loans do not require collateral and have similar repayment terms to 401k loans.
- You can apply for a personal loan online, get quick access to loan proceeds, and use the loan for any purpose.
- A moderate interest expense will be incurred, but assets in your 401k will be safe and will continue to appreciate.
When there is an immediate expense which requires attention, for many, it's difficult to envision the impact made by withdrawing funds from retirement.