Borrowing from a 401(k) account can be habit-forming—particularly for Americans in their 40s and 50s.
That’s the conclusion Fidelity Investments, drew when it examined the accounts of 180,000 people who participated over the past 12 years in one of the employer-sponsored 401(k) plans administered by Fidelity. Among this group, two-thirds of those who took out loans are what’s known as serial borrowers – or workers who acted more than once to borrow money from their retirement funds over that time period, Fidelity said when it first released its findings in August.
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