The Worst Idea in the History of the World

I’m exaggerating, but not by much:

New Debit Card Borrows Against 401k
With the threat of a recession looming, many families are looking for ways to get some quick cash to make it through these hard times.
In a move that financial analysts are calling a dangerous gamble, one company is offering a debit card that lets you tap into your 401k savings.
Borrowing against your 401k isn’t a new concept, but financial planners say making that money so easily accessible through a debit card greatly increases the potential danger. Money taken out of a 401k now could mean less money left for retirement.
The Reserve Solutions ReservePlus debit card lets employees borrow against their 401k plan by making withdrawals at ATMs, paying interest on the money withdrawn.

Will the payouts be in cash or lotto tickets?

Posted by on February 1st, 2008 at 11:10 am


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