Confused about borrowing options? Compare a 401(k) loan vs. personal loan to find out which is better for your finances.

Thinking about raiding your 401(k) for quick cash? Learn why a personal loan could be a smarter, lower-cost move to protect ...

When a 401(k) loan makes more sense than a HELOC "In my opinion, the 401(k) loan is better in that you are borrowing from yourself and not creating another real estate backed loan," says Mark ...

Borrowing from your 401(k) can help cover a large expense, but it has long-term risks to your retirement savings. Compare alternatives like credit cards and personal loans.

But 401(k) loans should be used sparingly. While money in a 401(k) account is intended for retirement, you can take out a portion of your balance as a loan. BLUEPRINT ...

Disadvantages of 401(k) loans. Potential impact on retirement savings: The biggest drawback of a 401(k) loan is that the money you take out of your 401(k) account won't grow.

Some 13% of 401(k) participants have an outstanding loan against their retirement savings, according to a recent study, with an average $10,708 loan amount. Using a 401(k) loan can be useful, but ...

401(k) loans vs. personal loans. 24-month personal loans had an average interest rate of 12.49% in February 2024, according to the Federal Reserve.That may be higher than the interest rate offered ...

Costlier than 401(k) loans. Personal loans are offered by for-profit financial institutions and often come with higher interest rates, even for very qualified borrowers.

401(k) loans have much lower interest rates than personal loans and credit cards. And any interest you do generate goes back into your plan. Cons of a 401(k) loan. The money isn't growing.

Cons of Taking a 401(k) Loan. For a comparison, here are three common drawbacks to consider: Bad for growth. Borrowing from a 401(k) reduces retirement savings and the potential for investment growth.

A 401(k) loan can provide a way to access your account funds for short-term liquidity.; 401(k) loans also have no impact on your mortgage, whether it’s your current mortgage or one you are ...