Disadvantages Of Borrowing Against A 401K

5 Reasons To Never Borrow Against Your 401K

We have all heard various investment strategists discuss the benefits of borrowing from our 401k plans. Lower interest rates and paying yourself back (with interest!) are the two biggest benefits to this type of loan. While it may seem like a sound borrowing technique, there can be some significant negative effects of taking out a participant loan on your long-term retirement savings plan. Knowing the risks can help you make the right decision for your situation. Here are 5 reasons to never borrow against your 401k.
Plan Savings Come To A Halt
Most retirement plans have stipulations that prevent borrowers from making additional contributions as long as there is an outstanding loan balance. Even if you are still allowed to make contributions, it may prove very difficult to pay back the loan and continue to save in your plan. The best way to ensure you have enough money for your retirement is to leave it alone until you do retire.
You're Actually Losing Money
Not only are you not saving while paying back your participant loan, the money you've taken out of the account is no longer growing. That low loan interest you're promised pales in comparison to the potential ROI of the market. In short, you're losing money now, which translates into the losing future money as well.
Penalties
Should you find that you are unable to pay back the participant loan for any reason, the loan may actually be deemed a withdrawal. Any type of withdrawal from your fund could be hit with all sorts of penalties and taxes. Once again you're losing money.
Trapped At Your Job
Many borrowers don't realize that their retirement plan stipulates they must repay the loan once they leave their place of employment. This can often mean staying at a job longer than you'd like simply because you don't have the money needed to put back what you've taken out.
Lifestyle Red Flag                   
Most importantly, having to take money out of your 401k plan can be a significant sign that you are living beyond your means. Redoing your budget and adjusting your spending habits can have far less of a negative impact on your overall savings strategies.
Do you want to hear more about saving to your 401k retirement plan? Contact The Payroll Company today!
This post was originally published at http://www.payrollcompany.biz/disadvantages-borrowing-401k/

Partner With A Professional Staffing Team

Why You Should Partner With Staffing Professionals During This Historic Unemployment Low

According to the Bureau of Labor Statistics, the country hit a 4.7 percent unemployment rate in February 2017. The past several months have all reflected this low unemployment trend, putting us in line with rates not seen in roughly a decade. And these are just the national averages; some individual states are experiencing historic lows in their unemployment.
While a bustling economy full of active workers is an excellent sign, many employers are suddenly noticing a major upheaval in their recruiting efforts. Just a few short years ago, any open position would instantly get flooded with applicants. However, with so many employees now enjoying job satisfaction, it can be hard to spot relevant candidates wading in the seemingly empty talent pool. The best way to ensure your open opportunities aren't affected is to partner with a firm that specializes in staffing and recruiting services.

Benefits Of Working With A Staffing Firm In This Hiring Market

Why should you partner with a recruiting firm in this hiring market? A sourcing team offers an extensive range of benefits that can quickly separate your positions from the competition. Your recruiting specialist will offer:
Access To Passive Candidates
Sometimes candidates don't realize that they are looking for a new opportunity…yet. Your recruiter will have the skills needed to go after "passive" candidates to present your position and ensure you get access to the best possible talent within your industry.
Compensation/Benefits Consultation
A low unemployment rate means that candidates don't have to settle for any opportunity that comes their way. Your position should not only fall inline with current market standards, it should also have a few added benefits that make it stand out from other openings in your vertical. A professional recruiter will consult with you to develop your compensation package so it appeals to the right candidates.
Expedite The Hire
Most importantly, in today's employment market, high-caliber candidates are hired quickly. Your staffing partner will manage the process for you to make sure you're ready to move as soon as you find the best fit for your position.
Contact The Payroll Company today to hear more about our extensive recruiting services.t
This post was originally published at http://www.payrollcompany.biz/partner-professional-staffing-team/