Is It Ever a Good Idea to Borrow From Your 401(k)?
A whopping 96% of Americans have experienced at least one serious "income shock," or an emergency that caused a drop of 10% or more in their pay. These shocks typically owe to a job loss or health scare, and when they happen, you need to be prepared with an emergency fund.
The problem, though, is that a good number of Americans don't have nearly enough money set aside to cover a financial emergency like this. In fact, 69% of Americans have less than $1,000 in their bank account -- and 34% of them have no money at all saved.
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Source: Fool.com