01.31.23 401(k) Borrowing & Hardship Withdrawal / A Warning For Entrepreneurs

The Clark Howard Podcast

Clark Howard

Investing, Entrepreneurship, Business

4.6 • 4.9K Ratings

🗓️ 31 January 2023

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

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Summary

Hardship withdrawals from 401(k)s have doubled over the past year. Clark discusses the tax ramifications and offers alternatives. Also, Clark champions entrepreneurs creating startups or joining franchises in tough times. But this comes with a very important warning vital to success: Vetting an opportunity and avoiding the job & training scamsters infesting the market. Know the signs. 401(k) Hardship Withdrawals: Segment 1 Ask Clark: Segment 2 A Warning For Entrepreneurs: Segment 3 Ask Clark: Segment 4 Mentioned on the show: NYTimes.com: Hardship 401(k) Withdrawals, Explained 6 Things To Know Before Contacting the National Foundation for Credit Counseling Should You Pay for Credit Monitoring? How To Freeze Your Credit With Experian, Equifax and TransUnion Why You Should Never Invest With a Bank Business opportunities and trainings that claim you’ll make big money are often scams Real Estate Investing: What To Know BEFORE You Start Will Mark Cuban's Prescription Company Really Save You Money? 10 Ways To Save on Prescription Drugs Clark.com resources Episode transcripts Clark.com daily money newsletter Consumer Action Center Free Helpline: 636-492-5275 Learn more about your ad choices: megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Have you ever been caught out by payments you've forgotten about?
0:03.2	Join over 2.5 million customers who are already using the Lloyd's Bank Upcoming Payments
0:08.2	tool on our app.
0:09.8	It gives you early sight of regular payments that are due to leave your account in the
0:14.0	next 31 days to avoid any surprises.
0:17.8	It's just one of our many useful tools that can help you stay on top of your money.
0:22.4	To find out more, go to Lloydsbank.com forward slash cost of living.
0:27.0	Lloydsbank by your side.
0:35.2	I'm so glad to welcome you here to the Clark Howard Show.
0:38.3	Our mission is to serve you and empower you to make better financial decisions in your
0:43.6	life.
0:44.6	I'm going to begin today's show with something that I don't like, but I know for many people
0:51.2	it is the option you feel you have borrowing from your 401k or doing something even more
0:59.5	severe, a hardship withdrawal.
1:02.8	Also I talked in yesterday's show about startup businesses emerging in tough times, but
1:10.0	there's a warning I've got to give you and that is there are scamsters booming right
1:15.6	now and it's only going to get to be more of a problem as the unemployment rate rises
1:22.2	if we do in fact go into an economic slowdown and with fake franchises, fake training,
1:30.0	fake job opportunities when I talk about that.
1:35.2	New report shows that hardship withdrawals from 401k have doubled, doubled over the last
1:45.5	reporting period, which is a year long cycle.
1:50.3	That is really, really concerning to me.
	...

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