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?”