NewsExperts Say Cashing Out Your 401(k) Could Be A Costly Mistake

Experts Say Cashing Out Your 401(k) Could Be A Costly Mistake

Financial experts advise that people plan for long-term financial security by exploring alternative options during the aftermath of a layoff.

Ed Slott, publisher of, said, “The greatest money-making asset anyone can possess is time,” CNBC Make It noted. And taking out funds is basically the same as restarting a retirement savings journey. Rebuilding funds to their previous level could be tough.

Although, Lester noted that a credit card should be a last resort because debt can become an issue due to high interest rates.

Applying for unemployment benefits should be done “as soon as possible,” Lester said, according to the outlet.

“This is not the time to feel like, ‘Oh, I can’t do that,” Lester said. “That’s embarrassing.’ There’s no shame in getting laid off or getting unemployment benefits.” Eligibility varies by state. Generally, a person might qualify if they were let go from a job through no fault of their own, CNBC Make It noted. The amount a person gets will be based on a percentage of their earnings over the past 52-week period and capped at their state’s maximum amount.

Source: Black Enterprise


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