ATM that lets you borrow against your 401k...dear lord.

[HardDrive]

Can we just sell the country to the chinese and get it over with?

http://www.myfoxdc.com/myfox/pages/Home/Detail;jsessionid=4112A2BE3B5EEB023BF94242FE9170E4 ?contentId=5644269&version=3&locale=EN-US&layoutCode=TSTY&pageId=1.1.1&sflg=1

New Debit Card Borrows Against 401k

Last Edited: Thursday, 31 Jan 2008, 7:17 PM EST
Created: Thursday, 31 Jan 2008, 6:48 PM EST

In a move that financial analysts are calling a dangerous gamble, one company is offering a debit card that lets you tap into your 401k savings.

With the threat of a recession looming, many families are looking for ways to get some quick cash to make it through these hard times.

In a move that financial analysts are calling a dangerous gamble, one company is offering a debit card that lets you tap into your 401k savings.

Borrowing against your 401k isn't a new concept, but financial planners say making that money so easily accessible through a debit card greatly increases the potential danger. Money taken out of a 401k now could mean less money left for retirement.

The Reserve Solutions ReservePlus debit card lets employees borrow against their 401k plan by making withdrawals at ATMs, paying interest on the money withdrawn.

The director of Reserve Solutions says there are a number of advantages to the program including:

Young contributors are more likely to open accounts, knowing they can access the money in an emergency
Since people can withdraw as they need, Reserve Solutions says its clients take out 35% less than traditional 401ks

The ReservePlus debit card was first offered in 2003, but Reserve Solutions is just beginning to market it now. Reserve Solutions claims the program has between 5,000-10,000 subscribers.

[911Rob]

bye, bye 401K then

[austin552]

Great for those after hour crack runs.

[dd74]

Well, you can't take it with you...

[Moses]

No problem. This is just like the sub prime calamity. If you devour your 401K and end up broke, the taxpayers who didn't tap into their retirement accounts will bail you out. It's only fair.

[the]

Yup. Those that have only have because they are "fortunate." It takes a village!

[Porsche-O-Phile]

Tax free hookers, here we come!!!

[widgeon13]

Brilliant idea, now that they have gone through their credit limit on all cards and have a huge home eq loan outstanding, let's let them eat up the last bit of hope they will ever have, perhaps we should take penalty off IRA withdrawals so we can really go into the shltter.

[turbo6bar]

Originally Posted by widgeon13

Brilliant idea, now that they have gone through their credit limit on all cards and have a huge home eq loan outstanding, let's let them eat up the last bit of hope they will ever have

Not so fast, there. ATM from future Social Security benefits is another source of income. Why should hard-working Americans be forced to wait until age 62 to draw benefits? Keep hope alive.

[Sapporo Guy]

lolo, tap, and tap it harder!

By the time all you baby boomers have retired, I'll probably be fok'ed real nice and hard.
Just imagine how much money will be left for those of us who are younger.

What I see is:
baby boomers retire
401k plans pay them off
money that was floating in the markets will now be required to pay off the 401ks
tighter funds mean less to gamble on sub-prime and other risky investment vehicles
more jobs and higher monthly installments for SS and 401k

bleak future ...

Or is my arm chair ponderings wrong ???

[frogger]

Strap yourself in tight, it's gonna be a bumpy ride.