In this episode of Talking Real Money, Don and Tom sound the alarm on a troubling trend: more people are dipping into their 401(k)s for emergencies. While hardship withdrawals are allowed under IRS rules, they come with serious penalties, taxes, and long-term setbacks. The hosts stress the importance of building an emergency fund before maxing out retirement contributions to avoid turning your future into a piggy bank. They also respond to questions about how to find fiduciary advisors and critique a high-yield income portfolio packed with risky, expensive ETFs—offering a reality check on chasing returns without understanding the risks. 0:04 Retirement talk kicks off with 401(k) praise—and a warning 2:08 Hardship withdrawals hit record levels; 5% of participants tapped accounts 3:50 Emergency fund should come before heavy 401(k) contributions 5:25 Auto-enrollment rises, but so does temptation to pull money 6:06 Weigh a 401(k) loan before a withdrawal—less damage long-term 7:47 IRS penalty exceptions outlined—some hardship cases qualify 9:35 Adulting tip: build that emergency fund, even if it’s hard 10:57 Better to borrow elsewhere (even a credit card!) than touch your 401(k) 12:59 SEP IRAs great for self-employed—but require discipline to fund 14:17 Listener asks why they don’t mention NAPFA more—they do! 17:25 Listener portfolio review: lots of income ETFs, lots of risk 20:33 Many holdings have high expense ratios, junk bonds, or complex strategies 22:33 Bottom line: get a professional review—and simplify the portfolio Learn more about your ad choices. Visit megaphone.fm/adchoices