From a recent WashingtonPost.com article by Michael A. Fletcher…
“A large and growing share of American workers are tapping their retirement savings accounts for non-retirement needs, raising broad questions about the effectiveness of one of the most important savings vehicles for old age.
More than one in four American workers with 401(k) and other retirement savings accounts use them to pay current expenses, new data show. The withdrawals, cash-outs and loans drain nearly a quarter of the $293 billion that workers and employers deposit into the accounts each year, undermining already shaky retirement security for millions of Americans.”
For complete article see, “401(k) breaches undermining retirement security for millions“
At Palma Financial Services, we concur with this article, the average American needs to establish an emergency fund before setting money aside in a 401k. The financial health of the individual is riding on this approach. If you have any questions regarding your retirement fund, your 401k, or your financial future, please call us today for a free initial consultation. With careful financial planning today, you will be saving comfortably for tomorrow.