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Resist the Urge to Tap Into Your 401(k) Early
Baby boomers were the most likely to dip in to their retirement fund early according to a recent survey from Bankrate.com. Almost a fifth of those that did said they used the money for an emergency expense, showing how important it is to maintain an emergency fund. Borrowing from your retirement fund, even if paid back, loses you out on a period of tax free growth, leaving a divot in your 401(k) that is increasingly hard to fill the closer to retirement age you are. Dan Kadlec with TIME explains the importance of retaining a 401(k) and setting up an emergency fund here.
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