Day: July 3, 2017

Bennett Group Financial: Less Known Facts About Your 401k Plan

Many people have a 401k plan and there is a good reason for that: people want financial stability once they stop working. As a company like Bennett Group Financial Services would tell you, however, these plans can offer more than retirement money. If used wisely, they can yield you far more financial benefits, which can be a welcomed addition to your 401k money. Some of the creative ways of using your 401k are taking a loan or tapping into it before retiring.

Loan

Not all people realize this, but the 401k is actually a source of money that is available for them to use. It can even be used as a loan when all other options fail. A financial expert can look at your 401k and help you find out whether you can use it as a loan or not. Now, of course, the loan has to be paid back, but knowing that you have a source of money available if you need it can increase your financial comfort.

Accessing the Money Before Retirement

This is not available with every kind of 401k plan, but some allow you to access the money before your retirement. It is called an “in-service distribution”, and if you are still employed by your company at the time you want to access it, you might be eligible to do so, depending on which type of 401k you have.

To know if your 401k qualifies or not, get in contact with an investment advisor company like Bennett Group Financial Services