Do you know the expenses of 401(k) Plan Loans when compared with life insurance coverage Policy Loans?

Do you know the expenses of 401(k) Plan Loans when compared with life insurance coverage Policy Loans?

White: There’s no expense for the 401(k) plan loan, apart from maybe an administration fee that is small.

Yellen: Actually? Simply a tiny management charge? Fidelity Investments charges $50 simply to set within the loan. (several other companies charge more). And overnight—for a $25 fee if you need your money faster than snail mail, Fidelity will send it to you.

That totals up to an astonishing 15% in costs on a $500 loan!

White: perchance you should borrow significantly more than $500, and so the portion shall be less? Continue reading “Do you know the expenses of 401(k) Plan Loans when compared with life insurance coverage Policy Loans?”