Should you borrow from your retirement plan? Here are several reasons not to: (1) borrowing could reduce what you are saving — some plans forbid contributions while the loan is being paid back; (2) if the markets go up, you could miss out on the growth your loaned money might have earned; (3) If the markets go down, that low interest rate you are paying yourself may not look all that bad; (4) job loss requires payback, usually within sixty days after you leave your employer; (5) research shows borrowing is habit-forming; and (6) it often does not fix the core issue — 46 percent of respondents to one survey took out a loan to pay off other debts.
For more financial tips for military families, visit the Military.com Money section.
