Financial Wellness @ Work

3 Alternatives to Borrowing From Your 401(k)

Last week, I wrote about some reasons it might actually make sense to borrow from your 401(k). After all, there’s no credit check and the interest goes back into your own account.  But even in those situations, there may be better options. After all, borrowing from your 401(k) means your money isn’t growing for retirement, the money generally has to be paid back over a relatively short 5 year period, and the outstanding balance could be subject to taxes and penalties if you leave your job. Here are three alternatives along with their pros and cons relative to a 401(k) loan and a couple of sites you can use to find them: Read more

The Cure for the Financial Hangover

Now that the holidays are behind us, do you find yourself carrying a few extra financial “pounds?”  That is, did you put so much of your holiday shopping on plastic that you end up starting the New Year carrying a balance on your credit card?  If so, then you’re probably not alone.  According to First Data, credit card use among holiday shoppers soared, and continued use could make the problem worse.  The good news is that there is a cure to the financial hangover.  It begins with a commitment to get rid of the debt, followed by a plan for reducing it.  To help you get started, here are some simple steps you can take to start shedding the financial weight: Read more

When Short Term Interest Rates Rise – What Should I Do?

One of the questions I ask the attendees of my workshops is, “Where do you think interest rates will be going in the future?”  The overwhelming majority state that they feel rates are going nowhere but up.  Now, I certainly appreciate that there could be an outside chance that rates may dip from where they are, but that is not as likely as rates going up (in my humble opinion).  So, if in fact we are moving to higher rates, what are some things you can do now to take advantage of the current rate environment?  Check out the tips below to see if any of these apply.  Note: while they may seem like a “no-brainer,” it’s those types of actions that we often don’t take. Read more

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