New Debit Card Borrows Against 401k

**min0 lee** · 01-31-2008, 09:28 PM

MyFox Washington DC | New Debit Card Borrows Against 401k

With the threat of a recession looming, many families are looking for ways to get some quick cash to make it through these hard times.

In a move that financial analysts are calling a dangerous gamble, one company is offering a debit card that lets you tap into your 401k savings.

Borrowing against your 401k isn't a new concept, but financial planners say making that money so easily accessible through a debit card greatly increases the potential danger. Money taken out of a 401k now could mean less money left for retirement.

The Reserve Solutions ReservePlus debit card lets employees borrow against their 401k plan by making withdrawals at ATMs, paying interest on the money withdrawn.

The director of Reserve Solutions says there are a number of advantages to the program including:

Young contributors are more likely to open accounts, knowing they can access the money in an emergency

Since people can withdraw as they need, Reserve Solutions says its clients take out 35% less than traditional 401ks

The ReservePlus debit card was first offered in 2003, but Reserve Solutions is just beginning to market it now. Reserve Solutions claims the program has between 5,000-10,000 subscribers

**DOMS** · 01-31-2008, 09:47 PM

Just consider it an IQ test.

**Big Smoothy** · 02-01-2008, 02:13 AM

Allowing to tap into 401Ks, is putting a band-aid on a bullet wound.

As shaky as Americans are right now, financially, this will simply exacerbate things down the road (the future), IMO.

What the heck is going on in the US, these days?

**min0 lee** · 02-01-2008, 04:41 AM

Originally Posted by Big Smoothy

Allowing to tap into 401Ks, is putting a band-aid on a bullet wound.

As shaky as Americans are right now, financially, this will simply exacerbate things down the road (the future), IMO.

What the heck is going on in the US, these days?

Bush.

**Doublebase** · 02-01-2008, 05:53 AM

Eek. A lot of people would probably think this is a good thing.

**tucker01** · 02-01-2008, 06:11 AM

Another fucked up solution.

Keep digging deeper and deeper. You aren't going to need that grave digger.

**danzik17** · 02-01-2008, 09:56 AM

Originally Posted by IainDaniel

Another fucked up solution.

Keep digging deeper and deeper. You aren't going to need that grave digger.

By the time most people need one, they won't be able to afford one.

**DOMS** · 02-01-2008, 10:22 AM

Originally Posted by Big Smoothy

Allowing to tap into 401Ks, is putting a band-aid on a bullet wound.

As shaky as Americans are right now, financially, this will simply exacerbate things down the road (the future), IMO.

What the heck is going on in the US, these days?

Wrong!

It's like shooting yourself where you've already been shot.

And min0, you're wrong, too. It's not just Bush, it's the "credit way of life" that started in the 1980s and has been pushed by nearly everyone in the government and business sector (who'd be benefited by this). From Regan to Bush Sr. to Clinton and down to Bush Jr.

And they're not the only ones to blame. The people that bury themselves in debt are to blame. Hell, they're the ones that deserve the most blame.

I've read a wide of figures on the guess of how much the average America owes in credit. My guess based on what I've read, once you drop out those who can't get credit, is between $30,000 and $40,000. Which of course doesn't count mortgages, but does count automobiles. And I have to wonder is that isn't too conservative.

People dig themselves into credit holes and blame everyone else but themselves and except someone to bail them out.

I have to pity for these people.

**BulkMeUp** · 02-01-2008, 10:30 AM

Originally Posted by DOMS

The people that bury themselves in debt are to blame. Hell, they're the ones that deserve the most blame.
...

People dig themselves into credit holes and blame everyone else but themselves and except someone to bail them out.

Serious lack of personal responsibility!

**largepkg** · 02-01-2008, 10:58 AM

Originally Posted by DOMS

Wrong!

It's like shooting yourself where you've already been shot.

And min0, you're wrong, too. It's not just Bush, it's the "credit way of life" that started in the 1980s and has been pushed by nearly everyone in the government and business sector (who'd be benefited by this). From Regan to Bush Sr. to Clinton and down to Bush Jr.

And they're not the only ones to blame. The people that bury themselves in debt are to blame. Hell, they're the ones that deserve the most blame.

I've read a wide of figures on the guess of how much the average America owes in credit. My guess based on what I've read, once you drop out those who can't get credit, is between $30,000 and $40,000. Which of course doesn't count mortgages, but does count automobiles. And I have to wonder is that isn't too conservative.

People dig themselves into credit holes and blame everyone else but themselves and except someone to bail them out.

I have to pity for these people.

If you're considering automobiles it's much higher than $40k. Hell my wife and I both have $30k vehicles. Other than that the only debt we have is her damn student loan which I refuse to pay off out of principal.

**DOMS** · 02-01-2008, 11:11 AM

Originally Posted by largepkg

If you're considering automobiles it's much higher than $40k. Hell my wife and I both have $30k vehicles. Other than that the only debt we have is her damn student loan which I refuse to pay off out of principal.

All of my debt included (I'm renting a house right now), I owe a little less than $10,000.

**largepkg** · 02-01-2008, 11:16 AM

That's great but most families have at least one high priced financed vehicle which throws the debt ratio way higher.

In my business I see on a daily basis lower income families with vehicles they have no business owning. They have no clue how to live any other way. It's really sad...

**DOMS** · 02-01-2008, 11:21 AM

I have a relative that's in for about $120,000.

**largepkg** · 02-01-2008, 11:24 AM

Originally Posted by DOMS

I have a relative that's in for about $120,000.

Does it have 22's?

**DOMS** · 02-01-2008, 11:34 AM

Originally Posted by largepkg

Does it have 22's?

I don't follow. 22's?

**tucker01** · 02-01-2008, 11:35 AM

Rim's

**largepkg** · 02-01-2008, 11:37 AM

I figured if he's in for $120k, a nice chuck would be one or more vehicles.

**DOMS** · 02-01-2008, 11:55 AM

Originally Posted by largepkg

I figured if he's in for $120k, a nice chuck would be one or more vehicles.

No, simply living way above their means. But they do have one new car, but that only accounts for $30,000 or so.

**DOMS** · 02-01-2008, 11:55 AM

Originally Posted by IainDaniel

Rim's

Thanks. I'm old now, and therefore, no longer hip.

**FitnessRubber** · 02-01-2008, 12:21 PM

the very concept just doesn't seem at all like a good idea

**KentDog** · 02-01-2008, 07:51 PM

I think it's a bad idea too, unless you don't plan on living that long and want to spend what you've already invested in your 401K. Though you could argue such a card allows for more financial freedom, it sounds a bit too much like gambling to me.

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