401k Withdrawals Surge Amid Economic Uncertainty

0:00On this March 13th in Birmingham, here's what is making headlines. More people are tapping into their 401k retirement accounts amid tough times. A recent Vanguard study shows 6% of folks did it this year, up from 5% last year and well above the pre-pandemic average of two, sent. Financial experts link despite economic jitters, including higher gas prices and ongoing conflicts like the war in Iran, which are sparking worry, for many households. Those withdrawals often go toward urgent needs, such as medical bills, college tuition, or staving off home foreclosures and evictions, hitting, retirement savings hard in the process. Rules allow pulling out of $50,000 or half-year account balance with a smaller $1,000 option that's penalty-free if, repaid within three years, though taxes still apply. Advisors stress treating this as a true last resort, pushing instead for trimming expenses, dialing back 401k contributions to free up cash, flow, avoiding high interest loans when possible,

1:04and building an emergency fund covering three to six months of bills. This episode is proudly sponsored by our partner. You know what is better than earbuds and bed? No earbuds at all. S-O-L-I-SoliPillow.com