Borrow against your 401K and The Superbowl

Because of weather, the January 29th workshop at the Moline Public Library in Moline, IL has been rescheduled twice. We will be having the workshop on Tuesday February, 12th at 7pm. It is still at the Moline Public Library. Thank you to the staff over there for being so flexible.

In this months issue:
  • What to consider when you are thinking about borrowing money from your 401k to pay for your student's college education. 401k loans are very different animals when compared to your home loans, credit cards, auto loans, and education loans.
  • Webinars will soon be provided by College Financial Strategies.
  • Just for grins... my favorite picks of the SuperBowl commercials.
Does it make sense to borrow from your 401k to pay for college?

This is a common question I receive. My standard answer is "no". Here's why...

Your student has much more time to prepare for their retirement, than you have to prepare for your's. I know we all want to provide our students with the best possible opportunities, but bankrupting your retirement is not the way to do it. Don't worry, your student will have over 40 years of time to pay off their education and save for their retirement. How much time do you have as their parent? 20 years? Maybe?

The costs of borrowing out of your 401k are much greater than the interest rates. You also have the opportunity costs of your missing returns.

Depending upon what the interest rates and administrative costs are on your 401k loan, you could be looking at some very substantial losses when borrowing. The cumulative impact is much more than what you would have with more traditional types of financing such as home equity or education loans.

Webinars Coming Soon!

Keep watching We will be announcing soon about our new Webinar schedule. This will allow us to better serve people all across the country. Our first webinars will be our Money and College presentation, and the new Student's Goal & Passions Workshop.

Just for Grins...

Ok, just for the heck of it. Last Sunday was the Superbowl. It was one heck of a game. This was one of the few years I had just as much fun watching the football as I did the commercials. That said, here are my favorite commercials.

Diet Pepsi Max...

Bridgestone tires...


And Audi pays homage to The Godfather...

I just get a kick out of those.

We're splitting up the newsletter. Look for the College Profiles mid-month.