F3YRecipes for Life

Recipes For Life

4 Reasons Why Borrowing from Your 401(K) is a Bad Idea

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Borrowing money from a 401(K) is unfortunately a pretty common practice. Though majority of people with 401(K) plans do not touch their retirement savings and take out a loan against it, there are enough people who do so, committing a mistake with serious financial repercussions.

Photo Credit: 401(k) 2013

While borrowing from your 401(K) may seem like a good idea at first glance, especially because of the convenience it brings with no credit checks required and a lower interest rate than most commercial loan products in the market, doing so often means a greater financial loss for you. If you’re major reason is to avoid the credit check requirement, then it is not reason enough because there are loan products out there, like title loans, that also do not ask for such requirements. After you’ve read our reasons for staying away from 401(k) loans, then you’ll probably end up doing the same as well.

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Four Reasons Why You Shouldn’t Rely on Social Security When You Retire

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People who have watched the news regularly over the past few years have heard a lot of discourse about the Social Security system in the United States. The truth is that those who have been counting on it to fund their retirement should think twice. Fortunately, people whose physical disability has prevented them from working will likely be safe from the same financial hardships as other Social Security beneficiaries. [Read more…]

Debt Etiquette (What to do when you find yourself in debt)

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Pay up! Pay up!
Pay up! Pay up!

Admit it, you are in debt. It’s all right, being in debt, in one way or another, is quite normal in today’s world. Gone are the days when items are paid in full (and in cash). Nowadays, people put purchases on credit or get loans to buy bigger and more expensive items such as cars and houses. Owing money or being in debt, unfortunately, has almost become the norm rather than the exception to the rule. However, this does not give you (or anyone for that matter) an excuse to dig yourself a deeper debt hole, or run away from your obligations. If you owe others: banks, financial institutions, friends, and relatives, money – you have to pay these off.

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Taking out a Home Loan: Banks vs Mortgage Brokers

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If you are looking for a lender from whom you can take out a mortgage, then you have two options. You can take a home loan directly from a bank or you can employ the services of a mortgage broker. It is smart to know when to directly get a loan from the bank and when to hire a mortgage loan broker.

Banks don’t charge excessive fees.

If you don’t want to pay extra charges or run the risk of being ripped off by scam brokers, then going to the bank directly is a good move for you. First off, banks don’t have hidden extra charges because they don’t need to pay for any experts. They just give you the flat rate and a single service fee. Brokers get their commission fees, thus they put on some extra charges. If you want to save money then go directly to the bank. [Read more…]

How to protect your retirement fund from inflation

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Ideally, you’re setting aside a part of your income for retirement. But is that money enough? Not many people factor in inflation—your money isn’t going to be worth as much 10 or 20 years down the road. And what if you live a particularly long life? That’s a good problem to have, but nobody wants to be 90 years old AND broke. Here are some ways to build a retirement fund that includes those factors—so you don’t just live longer, but live better. [Read more…]