PDA

View Full Version : "Put it on my 401K Debit Card "


SHELLY
02-20-2008, 01:54 AM
Spent your Economic Stimulus Check?
Credit cards maxed out?
Home Equity used up?
HELOC cancelled by the bank?
Overextended at the Payday Loan place?
Nothing to sell on E-Bay?

Never fear!! The 401K Debit Card is here!!

-----------------------------------------------------------
A growing number of companies now offer employees the option of being issued a debit card that taps a 401(k) loan. The card, called ReservePlus, allows workers to withdraw funds from their 401(k)s.

Here's how it works: After a company adopts the program, employees can transfer their approved loan line into a ReservePlus account online. Later, they receive a debit card that they can use to take out as much or as little as they need of the loan amount -- on average taking out 35% less than they applied for, says David Young, director of Reserve Solutions at The Reserve, the company offering the cards.

The loan begins only after the money is removed from the account. Instead of a payroll deduction, participants are billed directly, and then pay back the loan through the same mechanisms used to repay a credit card. Depending on the employer, some may also qualify for a revolving loan -- taking out and paying back money as they need it.

The card clearly has benefits for human-resource departments. The 401(k) debit-card program means that it no longer bears the administrative burden of creating amortizations schedules and collecting loan payments. And the program is free for them to adopt: employees pay for the programs administration through an initial sign up fee and interest on their loans.

http://www.thestreet.com/s/just-put-it-on-my-401k-debit-card/funds/saving-money/10398317.html

-----------------------------------------------------

So spend on America!! Strengthen our economy through Debt!

(P.S. Baby Boomers: Ensure you retain enough in your retirement accounts to purchase a condo in Florida, we've built plenty of them for you.)

Ya Gotta Stop Cracking Into the 401K Nest Egg (Note the GCT's in the Photo): http://www.msnbc.msn.com/id/23241606

/


.

seaside2
02-20-2008, 11:34 AM
As my old friend used to say,

" Don't let your ego come between you and your pocketbook".
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Looks like a lot of people didn't listen to him.:angry:

Here4Good
02-20-2008, 03:21 PM
Wow, this is a monumentally bad idea. This is no doubt from the same people who brought you those "1% for the first 24 hours" mortgages.

So, when these things take off and the boomers find themselves with no 401k, surrounded by big screen TV's and swimming pools, will we have a bailout program for their retirement?

SHELLY
02-20-2008, 04:06 PM
So, when these things take off and the boomers find themselves with no 401k, surrounded by big screen TV's and swimming pools, will we have a bailout program for their retirement?

Of Course!............

.

http://www.autolife.umd.umich.edu/Design/Gartman/D_Casestudy/ID74271_2_depression_apples.gif

.

sowalgayboi
02-20-2008, 10:36 PM
Wow this is the stupidest idea since the Interest Only mortgage. I personally had to take a 401k loan for an emergency, but that requires that you pay it back. How do the taxes work on this one?

scooterbug44
02-20-2008, 10:47 PM
Why are they constantly finding MORE ways for fiscally irresponsible people to get into financial trouble?

IMO a 401k is one of the few resources these people have..............and now they have a freaking debit card to spend it! :bang: