Article Bookmarked
Bookmark Removed

14% of Americans with retirement savings have already tapped into those funds


May. 25, 2020 CNBC

(Excerpt, click Read More below for full article)

Yet while lawmakers made it easier to take a withdrawal from your retirement savings, many experts say that it should not be the first step you take if you’re struggling financially. First make sure that you have explored and exhausted the other options available to you, says Kevin Mahoney, a CFP and founder of Washington D.C.-based advisory firm Illumint.

Depending on whether you’re employed or not, refinancing existing debt may help. Or you might be able to tap home equity. And don’t overlook family and friends who may be able to help with temporary assistance. “No matter the specific circumstances, a retirement withdrawal should stay down as far as possible on the list of potential options,” Mahoney says. 

“Withdrawing money from a retirement account is a reasonable move in a worst-case financial scenario,” Mahoney says. But make sure you’re only taking the money if you really need it.

If you tap into your 401(k) or other retirement accounts, make sure you’re using the money to pay off outstanding debts or cover an income gap during this difficult time, says Michael Kelley, an Ohio-based CFP and founder of Kelley Financial Planning. Don’t take it out to have an extra financial cushion or to make a big purchase, like a car.

And if you did take money from your retirement savings, give yourself a break, DuQuesnay says. “No one predicted that a global pandemic would cause 30 million Americans to lose their jobs in just six weeks,” she says. “Do what you need to do to get through the current crisis, then evaluate a path forward.”

Read More on CNBC

Gene Upshaw Player Assistance Trust Fund

Apply Today

All Resources

Tell Me More

How to Get an Emergency Loan if You Have Bad Credit

Options are available but you need to be cautious.

Read More

Are Fast Cash Loans Legitimate?

When you hit a financial snag and need some quick cash for expenses until your paycheck arrives, it may be tempting to consider a fast cash loan.

Read More

Financial Stress Leads to Symptoms of Depression, PTSD

Stressed about money? It's common.

Read More

How to Protect Yourself From Credit Card Theft

Practices to keep you safe.

Read More

The Secret to Being More Charming (Without Being Obnoxious)

Displaying authentic charm is easier than you think.

Read More

3 Simple Strategies to Boost Your Brain Health Today

Science-backed tactics to quickly improve cognitive and mental health.

Read More

4 Principles to Develop Next-Level Leadership at Your Company

Take ownership and think innovatively.

Read More

Why Acupuncture Is Going Mainstream in Medicine

One surprising shift due to the opioid epidemic.

Read More