Comments on: The 401k Debit Card: Probably One of the Worst Ideas Ever http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/ Helping a unique generation achieve financial independence. Fri, 19 Mar 2010 18:02:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Credit Card Chaser http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-123200 Credit Card Chaser Sat, 28 Nov 2009 07:05:58 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-123200 Haha nice job for highlighting this as this is likely one of the dumbest things I have seen in quite some time. Haha nice job for highlighting this as this is likely one of the dumbest things I have seen in quite some time.

]]> By: greg http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-122567 greg Tue, 20 Oct 2009 15:53:19 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-122567 not a bad idea... do you think the card is the reason people are taking money out of their accounts? Taking money from a retirement account should be last resort.. but most 401k's loans and most withdrawals are pre-approved and can be set up online or a simple call. What is available is based on your plan rules. All the card does is make accessing the funds a little easier after processing. Instead of receiving a check and waiting for 7 days the funds will be availble to be removed. To access money you will still be required to go online or call in and process a transaction to sell the securities to gain access to the cash.. it is not a bank account with simple withdrawal whenever capibilities.. calling in to take money out requires to talk to a rep and online will make sure you are aware of the tax implications.... As I stated before retirement accounts should be last resort, but if it is the resort you choose, why not be in this century on options of receiving your money? not a bad idea… do you think the card is the reason people are taking money out of their accounts? Taking money from a retirement account should be last resort.. but most 401k’s loans and most withdrawals are pre-approved and can be set up online or a simple call. What is available is based on your plan rules. All the card does is make accessing the funds a little easier after processing. Instead of receiving a check and waiting for 7 days the funds will be availble to be removed. To access money you will still be required to go online or call in and process a transaction to sell the securities to gain access to the cash.. it is not a bank account with simple withdrawal whenever capibilities.. calling in to take money out requires to talk to a rep and online will make sure you are aware of the tax implications…. As I stated before retirement accounts should be last resort, but if it is the resort you choose, why not be in this century on options of receiving your money?

]]> By: Coles Myer http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-121671 Coles Myer Tue, 01 Sep 2009 05:55:18 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-121671 I think that if you must have good ideas to prosper, but with this kind of offer it will only burden rather than help the consumer. I think that if you must have good ideas to prosper, but with this kind of offer it will only burden rather than help the consumer.

]]> By: Personal finance blog http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-121385 Personal finance blog Thu, 06 Aug 2009 00:53:49 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-121385 Thank you for the knowledge on the 401k debit card. Thank you for the knowledge on the 401k debit card.

]]> By: Brandy http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-120802 Brandy Sat, 27 Jun 2009 02:22:12 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-120802 A horrible idea. Why on earth would anyone think this is smart. It's scary to think how many people could be hurt by this. A horrible idea. Why on earth would anyone think this is smart. It’s scary to think how many people could be hurt by this.

]]> By: sl00bie http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-120164 sl00bie Fri, 08 May 2009 12:31:38 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-120164 @John So I assume you're paid to go around and look for negative interweb posts on this topic and "inform" readers as to the "true" (i.e., good) nature of this card. Sounds like a fun job. Also the next time to do this you may wish to tone your rhetoric down a bit to make it a little less obvious ("you can simply opt to not take out the extra $1,000 and you’ve actually saved some money on your payments!" -- WOW GEE WHIZ I GUESS I WAS WRONG ALL ALONG LOL!). @John

So I assume you’re paid to go around and look for negative interweb posts on this topic and “inform” readers as to the “true” (i.e., good) nature of this card. Sounds like a fun job.

Also the next time to do this you may wish to tone your rhetoric down a bit to make it a little less obvious (“you can simply opt to not take out the extra $1,000 and you’ve actually saved some money on your payments!” — WOW GEE WHIZ I GUESS I WAS WRONG ALL ALONG LOL!).

]]> By: Eu http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-117623 Eu Thu, 16 Apr 2009 21:02:29 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-117623 So, John, WHY I need a third party (the escrow people) to pay interest in order to use MY OWN MONEY? If I need to borrow from my 401K I can do it ON MY OWN, PAY INTEREST FOR MYSELF, and put my $5000 in an account service free that has a debit card?? So, John, WHY I need a third party (the escrow people) to pay interest in order to use MY OWN MONEY? If I need to borrow from my 401K I can do it ON MY OWN, PAY INTEREST FOR MYSELF, and put my $5000 in an account service free that has a debit card??

]]> By: John http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-110108 John Fri, 13 Mar 2009 18:19:50 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-110108 This is actually a case of the writer of this article being heinously misinformed about what this product actually does. The way it works is as follows. Say you are hit upon hard times, and you want to take $5,000 loan from your 401(k) because that is what you estimate you will need for the next three months of living expenses while you get back on your feet. What this product does is escrow that $5,000 into a money markey within the 401(k) (so that it is still earning interest), and has the OPTION to set up a debit card so that you can use the funds at your leisure. It's the same thing as taking the $5,000 all at once, except that you have access to the funds when you need them, and you only take out exactly what you need. Imagine you only needed $4,000 instead of $5,000 - you can simply opt to not take out the extra $1,000 and you've actually saved some money on your payments! Also, with regards to invoicing the client monthly, this is true, however the loan payment is ACH'd from their bank account automatically, meaning the only way that a payment will be missed is if the bank account goes to zero - and at that point I am sure the participant is not worried about their loan so much as they are worried about bankruptcy. Educate yourselves. It's not this vile, evil thing that some people assume it to be. This is actually a case of the writer of this article being heinously misinformed about what this product actually does.

The way it works is as follows. Say you are hit upon hard times, and you want to take $5,000 loan from your 401(k) because that is what you estimate you will need for the next three months of living expenses while you get back on your feet.

What this product does is escrow that $5,000 into a money markey within the 401(k) (so that it is still earning interest), and has the OPTION to set up a debit card so that you can use the funds at your leisure. It’s the same thing as taking the $5,000 all at once, except that you have access to the funds when you need them, and you only take out exactly what you need. Imagine you only needed $4,000 instead of $5,000 – you can simply opt to not take out the extra $1,000 and you’ve actually saved some money on your payments!

Also, with regards to invoicing the client monthly, this is true, however the loan payment is ACH’d from their bank account automatically, meaning the only way that a payment will be missed is if the bank account goes to zero – and at that point I am sure the participant is not worried about their loan so much as they are worried about bankruptcy.

Educate yourselves. It’s not this vile, evil thing that some people assume it to be.

]]> By: pays to live green http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-102804 pays to live green Tue, 20 Jan 2009 17:27:49 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-102804 Man, that is one bad idea. The problem is that probably many uninformed people buy into this and don't realize what they are getting into to. Man, that is one bad idea. The problem is that probably many uninformed people buy into this and don’t realize what they are getting into to.

]]> By: Bill M http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-98446 Bill M Tue, 23 Dec 2008 20:24:40 +0000 http://genxfinance.com/2008/01/16/the-401k-debit-card-probably-one-of-the-worst-ideas-ever/#comment-98446 Who invented this stuff? Who invented this stuff?

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