Thirteen years ago, my wife and I borrowed $3,500 from our 401(k) plans to help cover a down payment for our home.
It was one of the dumbest financial moves we ever made. By one calculation, it may have cost us about $18,000 in future retirement savings.
We would have been better off adding the $3,500 to the mortgage balance rather than tap retirement savings. At most, that would have cost us an extra $7,300 in interest payments. In reality, it probably would have been less given the...Full Story