CFP's advice for early retirement account withdrawal during COVID-19 - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 51%

United States Headlines News

United States Latest News,United States Headlines

Since there's no requirement to replace the money withdrawn from a retirement account like there would be with a retirement plan loan, it's easy to put off

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

Even if your retirement account is your best option for quick cash right now, tread lightly, says a financial planner.If you had to pull cash from a retirement account lately, you're not alone. so far. Small businesses have shuttered and pay cuts have become commonplace. These are dire financial straits.of around 1,200 Americans with retirement savings conducted by Magnify Money, 30% of the respondents took a withdrawal from a retirement account in March or April.

The no-penalty allowance applies to "coronavirus-related distributions" — i.e. people who are diagnosed with COVID-19 or have experienced financial hardship from quarantine, layoffs, reduced hours, or furlough up to December 31, 2020.early. Even if there's no penalty charge, an early withdrawal reduces your balance and diminishes future earning potential.

"If I'm personally talking to a client and if the decision was they need money and they need to pull from a retirement account or load up a credit card, I'm going to go with the first option," Van Sant says. "But, I'm going to remind them that once the dust settles, we have to come up with a plan to start replenishing."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside McDonald's response to George Floyd protests - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Look inside a modern Colorado ranch home made of shipping containers - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. That is so nice!
Source: BusinessInsider - 🏆 729. / 51 Read more »

Amazon employees sue over lax COVID-19 safety measures - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. There is a lot of money to be made in that lawsuit! Pussies!!!
Source: BusinessInsider - 🏆 729. / 51 Read more »

Robot serves food, takes temperatures for COVID-19 in the Netherlands - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. scottsantens Dutch food is disgusting NHovemann here ya go Andrewyang was right again! when will people wake up and stop denying its happening.... automated everything is coming.....
Source: BusinessInsider - 🏆 729. / 51 Read more »

Pride 2020: Out on the FrontlineNBC Out is honoring 12 LGBTQ people during Pride Month who are contributing to the fight against COVID-19 during the global coronavirus pandemic.
Source: NBCNews - 🏆 10. / 86 Read more »

2 billion doses of Oxford COVID-19 vaccine planned after Gates funding - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. It is a goodwill initiative, but a mistake. In fact, it may lead to finding vaccine later than expected! How? Well big pharma will push away alternatives that may work but they are not working on. Big money close to power always lead to corruption. I just hope that I am wrong. __MJDr It remains unclear whether the vaccine will work 🤨 So actual cost is $2.50/dose ($750M/300Mdoses). What will be the sale price then?
Source: BusinessInsider - 🏆 729. / 51 Read more »