I have a few pet peeves of my life for example somebody takes her fingernails and they scratch it on a chalkboard he can’t take it when I go to bed and my dog is laying on my pillow and when I go to move her she growls at me my dog growling at me really my dog hello I’m your master in the financial world one of the biggest pet peeves is when somebody asked me how do I borrow my 401k how do I take a 401k loan why are you asking me that you shouldn’t be asking me that you got no business going to your HR department filling out the 401k loan paperwork and borrow it get your 401k no business at all had a lady who already had a loan on a 401k so she already borrowed against it pet peeve so when you borrowed money get your 401k hopefully you’ve learned your lesson that you don’t need to borrow anymore you need to figure stuff out boost up your emergency fund does she do that no she did not she came back and wanted to borrow more against her 401 K but she had a really good reason right actually no she wanted to borrow more on her 401 K so she could fund her daughter’s vacation overseas I’m sorry I’m I’m sorry I didn’t hear you you want to do what if you’re gonna disregard everything I’ve said to this point and you still want to take a 401 k loan let me give you some more reasons why I think it sucks so you’re broke you call your HR department request a 401 k loan application you fill out the paperwork you’re gonna be able to borrow half of your vested balance once you borrow the money you have a period of one to five years to pay it back so here’s the kicker if you leave your job or you get fired you have to pay your 401k loan back in full otherwise you get hit with taxes and penalty but here’s my pet peeve so people try and justify to me that the reason they take out a 401 k loan is because they get to pay them self interest that’s the stupidest thing I ever heard seriously you’re gonna try and convince that to me come on now talk to the hand do you know how much interest you’re losing by taking it out I didn’t think so the first thing you have to realize is that it’s not free money you’re gonna have to pay origination fees you’re going to pay annual maintenance fees just to borrow the money on top of that when you pull the money out it’s not invested so guess what it’s not growing that’s called an opportunity lost so please please please don’t borrow on your 401 K don’t take out a 401 k loan doing so is a recipe for disaster and you’re never going to be able to retire and besides do you really want to be awarded a trophy for the worst financial decision that you can make regarding your retirement I just think in a 401 k loan and royally screwed my financial future yes what you do wanna build up your emergency fund build up your checking build up your savings build up your money market having enough cash savings will prevent you from having to borrow from your 401k and that is not a pet peeve this is jeff rose from goodfinancialcents.com take I would like to thank the Academy for presenting this to me this is one of the greatest trophies ever I have a 401k loan and I love it I love you 401k loan you’re my buddy I’m pay my self-interest hey winner winner chicken dinner