Today on MyMoneyLife with Chuck Bentley

Nearly 3 million people lost their jobs in the last year, and now a new study reveals that almost half of those with 401(k)s took early withdrawals from those funds.

The study also showed that younger workers were far more likely to cash out their 401(k)s.  Nearly 60% of workers in their 20s took out cash, while only about a third of workers in their 50s withdrew money.

 The study was done by Hewitt Associates, an HR consulting firm. The company says that despite dire warnings, employees don’t seem to be getting the message of just how harmful it is to take early withdrawals from your retirement savings.

I couldn’t agree more, and that’s why Crown recommends building up a cash reserve in case you encounter a devastating financial loss. 

Without that emergency fund, you could be forced to tap into your retirement account in the event of a job loss, something that’s increasingly possible as unemployment nears 10%.

Cashing out a 401(k) prematurely means having to pay taxes on the withdrawal, plus a 10% penalty.  Worse, that money won’t be allowed to grow over the years, and that will cost you big time when you reach retirement age.

Now, if you haven’t started putting money aside for an emergency fund, please start today. Even a few dollars each paycheck will add up. Remember what the bible says, steady plodding brings prosperity.

And if you’d like help developing a spending and savings plan or if you need help getting out of debt, let us know. Just go to Crown.org.

Retirement Planning

Without a doubt, planning for retirement is important; but even more important for Christians is achieving or receiving God’s best in their lives.

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Retirement: Is it Mandatory?

When planning for retirement, workers should not try to protect against every eventuality. But they should prepare.

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Being Content

Contentment is knowing God’s plan for your life. Therefore, seek God’s will for your life, then trust God’s promises.

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Social Security Retirement and Survivor Benefits

Although most American workers have no choice in the matter—paying Social Security tax is not an option; it is mandatory.

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
• Business By the Book
• Crown Mvelopes