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Stock impact report

Where to turn before raiding your 401(k) [Yahoo! Finance]

NerdWallet, Inc. (NRDS) 
Company Research Source: Yahoo! Finance
Credit: Cogent-Marketing / Getty Images When you are in a tight spot for money and you have a sizable balance in your retirement account that won't be needed for years to come, it can be tempting to go ahead and tap into it. You can just restock it later, right? The problem: this does not always end up happening. Plus, you will lose out on the compound interest that would have accrued, which can materially affect your available savings come retirement. Last year, a “record 6% of workers in 401(k) plans administered by Vanguard Group took a hardship withdrawal,” marking the “sixth straight year of increases since 2018, when Congress made it easier to take a hardship distribution,” said The Wall Street Journal . Many people are facing real financial challenges: The “top reasons for taking hardship withdrawals last year were avoiding foreclosure and eviction and paying medical expenses.” But when you are in this situation, there are other places to turn outside of the money set asid Show less Read more
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