On Topic
You Owe
Your
Tomorrow
Borrowing from Your
401(k) to Pay for College
By Diana K. Powell, J.D.
“Let our advance worrying become
advance thinking and planning.”
—Winston Churchill
E
xperts continue to warn us
that we are simply not saving
enough for retirement. People
on average are not taking advantage of
their 401(k)’s and other savings options
available to them at the workplace.
We seem to live in a “YOLO” world
(You only live once) when we should
think in terms of “SITUP” (Save it to
use, People!)
Investopedia defines a 401(k) plan as “a
qualified plan established by employers
to which eligible employees may
make salary deferral (salary reduction)
contributions on a post-tax and/or
pretax basis.” (source: Investopedia)
18 | FALL
20
SUMMER
2013 2013
This is the retirement savings plan
offered by most large and mid-size
corporations to employees that create
“automatic savings” for the future.
(source: 401Kafe) Work today, plan for
tomorrow in order to be able to support
yourself when it is time to stop working
and retire by putting money away in
a 401(k). Unfortunately, life gets in
the way when it comes to saving for
retirement. One of the biggest obstacles
to saving fo