Using Your Retirement Savings

Using Retirement Savings for Other Expenses

Q. Why does GuidedSavings care if I am using my savings for other than retirement?
A. While it's always a good idea to save your retirement accounts for retirement, the time may come when you need to pay for something just as important. If you do decide to fund something like your children's college education from your retirement savings, then GuidedSavings needs to take that into consideration in calculating the impact on your total wealth accumulation.

Q. What other kind of spending can I use my 401(k) account for?
A. 401(k) accounts with loan features will usually always provide loans for the first-time purchase of your primary residence and sometimes for other general purposes. You can get specific information from your Plan's documentation or the Human Resource department at your employer.

Q. Is it better to take a hardship or a loan?
A. It is typically always better to take a loan because a loan gives you the opportunity to pay yourself back without immediate or tax consequences or penalties.

Q. Is it a good idea to use a retirement plan to pay for children's college costs?
A. Whether it is a good idea to use your retirement plan to pay for your children's college costs depends on the amount of your retirement savings, how much you plan to take out and how much time you have to save again after you use your retirement savings for college expenses.

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