Workers Across All Income Levels Are Making This Major Retirement Plan Mistake
Without independent savings, retirees risk struggling financially during their golden years. That's why workers are advised to sock away funds in an IRA or 401(k) -- to ensure that they have enough money to cover their living expenses when they're older. But data from J.P. Morgan Asset Management reveals that workers across all income levels are borrowing money from their retirement plans. And that's a troubling trend.
Though middle-income earners are more likely to take a loan from a retirement plan than lower and higher earners, it's a habit all three groups are upholding. Now at first glance, borrowing against your own retirement savings might seem to make sense. After all, that money is yours, so why deal with a bank when you can access funds that are already in your name and restore them when you can?
Here's the problem, though: Borrowing against a retirement plan is risky, and if you're not careful, you could wind up getting hurt financially.
Source Fool.com
