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May 25, 2012
Mark Clayton: Is Hillary's State Dept. hacking Al Qaeda? Not quite
Erika Bolstad: Temple cancels Wasserman Schultz speech
The Kosher Gourmet by Ethel G. Hofman: The former president of the International Association of Culinary Professionals, whose members included the likes of Julia Child, is back with contemporary Shavous cuisine: Ruby Fruit Soup, Sweet Noodle Kugel with Cheese, Key Lime Curd, Calsone Casserole Frittata with Wild Mushrooms, Sun-dried tomatoes and Olives, Baked Tilapia with Pepper Cheese Cream and Brown Sugar Shortbread
May 24, 2012
Jeff Jacoby: The peace process battered Israel's reputation
Michael Muskal: 'Pro-choice' position hits record low, according to poll
Chris Farrell: Are We in a Tech Bubble?
The Kosher Gourmet by Penelope Wall: PHILLY CHEESE STEAKS --- hold the steak!
May 23, 2012
Tony Pugh: More private colleges offering tuition discounts
Mary Beth Franklin: How to Choose the Right Annuity for You
Tina Susman: The wig wasn't enough: Man gets 13 years for posing as his dead mom
The Kosher Gourmet by Emma Christensen:A simple way to do fish right
May 22, 2012
Warren Richey: Can US group challenge overseas surveillance act? Supreme Court to decide
Thomas M. Anderson: Walking Away From a Mortgage
The Kosher Gourmet by Megan Gordon: Enjoy a celebration of the most rich and layered flavors: Black bean, sweet potato and quinoa chili
May 21, 2012
Mark Clayton: Cybersecurity: How US utilities passed up chance to protect their networks
Howard LaFranchi: NATO summit: Who will foot the bill for long-term Afghanistan security?
Chris Farrell : Earn Dividends in Emerging Markets with This WisdomTree ETF
Stephen Whiteside, Ph.D. : Mayo Clinic Medical Edge: Social anxiety disorder --- or just shy?
Guy Jackson : Victim's father regrets death of Lockerbie bomber
The Kosher Gourmet by Mario Batali: Famed chef's veal shoulder farsumagru: A festive meat course for late spring
May 18, 2012
Rabbi Berel Wein: Striving: The People of the Book's Book for (All of) the People
Steven Goldberg: 5 Great Stock Picks and the Exchange-Traded Fund that Owns Them
Mary Pickett, M.D.: Ask the Harvard Experts: Don't be forced into gluten-free lifestyle based merely on a doctor's false-positive test
The Kosher Gourmet by Carolyn Malcoun: DIY healthy lunchbox treats: HOMEMADE FRUIT BARS for kids and brown-bagging adults alike
May 17, 2012
Warren Richey: Teacher fired for being unwed and pregnant can sue religious school, court rules
Josh Mitnick: Netanyahu's 'centrist' coalition is already proving it's anything but
Steven Goldberg: Earn Dividends in Emerging Markets with This WisdomTree ETF
Amina Khan: Research links coffee to lower death rates
The Kosher Gourmet by Faith Duran : Cheesy Potato Breakfast Casserole with Cheddar and Sun-Dried Tomatoes
May 16, 2012
Carmen Terzic, M.D., Ph.D. : Mayo Clinic Medical Edge: A variety of exercises can help improve balance
Melissa Healy: National strategy on Alzheimer's disease aims to halt it by 2025
The Kosher Gourmet by Joyce White : GOODNESS GRACIOUS: GREENS! 4 winning recipes that are no longer just for down-home folks (Includes expert tips & techniques)
May 15, 2012
Kristen Chick: Obama administration resumes arms sales to Bahrain despite serious unresolved human rights issues. Activists feel abandoned
Pat Mertz Esswein: Homes are now affordable again and mortgage rates are low. What you need to know before you buy
Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments
Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again
The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES)
May 14, 2012
Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone
Harvard Health Letters: Heart disease and dementia
The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight
May 11, 2012
Jessica L. Anderson: Get the Best Deal on a Used Car
Jett Stone: Forget face-lifts and fake knees. Scientists have seen the fountain of youth --- and it's broccoli
The Kosher Gourmet by Chef Mario Batali: The famed chef's vegetable dish that tastes true to the season: FAVAS AND SUGAR SNAP PEAS WITH POTATOES AND TARRAGON
May 10, 2012
Sergei L. Loiko: Putin sends warning to U.S., NATO in Victory Day speech at Red Square
Mary Rourke: How being a 'mentch' got Vidal Sasoon his start and fighting in Israel's War of Independence provided him with confidence and a strong sense of his own identity
Jeff Bertolucci: Get Home Phone Service for Less Than $10 a Month
The Kosher Gourmet by Betty Rosbottom: Gleaming with its golden, crimson, and snowy white hues, this silken smooth and creamy STRAWBERRY ORANGE TRIFLE looks impressive, but is easy to prepare
May 9, 2012
Sharon Palmer, R.D. How you can reduce your risk -- or delay -- chronic diseases associated with aging
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Jewish World Review
4 Questions to Ask Before Borrowing from Your 401(k)
By
Susan Johnston
It may sound like an appealing option since you’re paying interest to yourself rather than a bank, but 401(k) loans do come with risks and restrictions
JewishWorldReview.com | (USNWR)
It may sound like an appealing option since you're paying interest to yourself rather than a bank, but 401(k) loans do come with risks and restrictions. Generally, you cannot borrow more than $50,000 or 50 percent of your vested account balance. (Your vested account balance includes all the money you've contributed, but sometimes employer contributions are subject to a vesting schedule.)
As Bill Losey, president of Bill Losey Retirement Solutions and author of Retire in a Weekend, points out, "People don't realize they're paying the money back with after-tax dollars, and ultimately those dollars will be taxed [again] when they take out a 401(k) distribution." If you lose your job or leave before you've finished repaying the loan, you could pay even more in penalties. Also note that unlike a mortgage, you cannot deduct the interest on a 401(k) loan.
Here are four important questions to ask before taking out a 401(k) loan:
1. Does my retirement plan even allow it? Depending on how your employer's retirement plan is structured, borrowing from your account may or may not be an option. "When [companies] set up their 401(k) plan, they have the ability to customize it," explains Laura Adams, host of the Money Girl podcast and author of the book by the same name. "Many smaller companies will not include a loan option because it's an administrative headache, but many larger companies do offer loans." To find out if your employer offers loans, ask your benefits administrator or check your summary plan description, which should be sent to you annually. The process is similar for those who work at a nonprofit and have a 403(b) instead of a 401(k).
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2. Do I feel secure in my job? If you're under age 59 1/2 and you get laid off or decide to leave your job before you've repaid the loan, you'll need to pay it back quickly—generally within 60 or 90 days. Otherwise, the outstanding balance could be reclassified as an early withdrawal and you could get hit with income taxes on that money, plus a 10 percent early withdrawal penalty. In that situation, taxes and penalties could eat up 30 percent or more of the money you can't pay back, according to Adams. That's why Adams and Losey encourage potential borrowers to do their best to ensure steady employment and avoid job changes during the five- to seven-year period when 401(k) loans are typically repaid.
3. Do I have an emergency fund or other ways to secure a loan? Because of the high risks involved with a 401(k) loan, Losey says it should be considered as a last resort. Tap your savings or emergency fund and consider other loan options before borrowing from your retirement account. "The interest on a 401(k) loan is typically one or two points above the prime rate," he says, adding that borrowing from a credit union or using a zero-percent credit card offer as a short-term loan could be cheaper and less risky. Although borrowing from relatives can be awkward, that option removes the potential for early withdrawal penalties and offers your relative a higher interest rate than they'd get from a bank. "If I said, 'I'll pay you back at 3 to 5 percent interest,' they're only getting 1 to 2 percent from a bank, so that might be a good option for both of you," says Losey.
4. Am I willing to absorb the opportunity costs? Taking money out of your retirement account means you'll miss out on the opportunity for that money to grow. "You're suffering a loss of earnings whenever you take money out of an investment account," says Adams. "When you look at the long-term consequence of taking that money out, it can be a bigger dent in your retirement savings than you would think." Plus, Adams adds, "If you're not contributing to your 401(k), you're not getting matching funds from your employer." Use a 401(k) loan calculator to get a ballpark figure on how much borrowing from your 401(k) could impact your retirement account.
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