Don't Borrow From Your 401K

With today's economic hardships, experts warn there is one place you shouldn't look...and that's your 401-K.

Financial experts say taking money from your 401-K is a big no-no. Hardship withdraws are available during immediate and heavy financial problems. But it comes at a big price. You have to pay income tax on the amount taken out. Plus, an additional ten percent penalty tax.

Experts say you miss out on the opportunity to have that money grow as the markets come back. Remember, withdrawing money from the 401K market when the market is down, is not the best strategy.

The good news here is there are other options like a home equity loan or loan management account. Experts say if you have to borrow, make sure you pick an option with low interest rates.