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| Image courtesy of Vichaya Kiatying-Angsulee at FreeDigitalPhotos.net |
I found this article:
401(k) ‘hardship’ withdrawals hit record high, Vanguard says — another sign households feel the pinch of inflation PUBLISHED THU, DEC 8 2022 on CNBC by Greg Iacurci @GREGIACURCI
"The share of retirement savers who withdrew money from a 401(k) plan to cover a financial hardship hit a record high in October, according to data from Vanguard Group..."
The market has been turbulent and most accounts are down. A person should ask themselves "is this really the time to withdraw from retirement accounts." It is bad enough to sell in a down market but selling your future off in a down market while in carrying unmanageable debt seems to compound the problem. Finally, if a person uses retirement savings to try to get out of debt and is not successful causing them to file bankruptcy, that is just good money after bad. Bankruptcy not only gets people back on track in the present but can protect their future as well.
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