In light of most people who had significant investments for retirement losing a good portion of them this year, I thought this would be a good topic to discuss this week.
I read a short article at Comcast Finance about borrowing from your 401k or 403b to pay off debt. I once did this since it was considered a hardship and I lost the job where I was contributing to it I didn't have to pay it back. However it didn't come without steep tax penalties and I only took about something to the tune of $1200 at the time.
Currently, I have no retirement investments (yes, I know I need to). So it really isn't an option for me but it is for many out there who may have enough left after losing portions of it during the credit crisis etc...
But should you? Should you borrow against your retirement to pay off debt? Should you borrow from your future to save the present?
Personally, I say no, at least not in most situations.
What do you think? Would you borrow from your retirement if you were in hot water financially? How much is too much borrowing if you would use retirement to do so? What would be the circumstances you would borrow from retirement?