Borrowing from your 401(k)/Considering holiday loans
Also, watch out for that 401(k)! It’s never a good idea to borrow from your retirement account, as it will slow down your investment journey, and you might end up with unnecessary costs.
Various retirement accounts have a “hardship withdrawal”, even if, technically, holiday expenses shouldn’t fall under this category. You might be able to get a 10% early withdrawal, but also taxes. You should ask your financial professional before proceeding, as it might affect your long-term investment goals.
If you enjoyed reading this piece, you might also read: 7 Best Florida Neighborhoods to Retire in 2023
