JW’s Financial Coaching Podcast Lesson #31-Answering listeners questions on 401(K) loans and where to keep your important financial documents

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Highlights of today’s show:

  • Answering questions from the listeners
  • Should Ben take out a 401(K) loan to pay off Sallie Mae?
  • Pros and Cons of 401(K) loans
  • What financial documents do I need to put with my will?
  • Changes upcoming to the blog

Answering questions from the listeners is always something that I enjoy doing and today we answer a couple of them on the show. There are two ways for you to send in your questions- 1.) Email me at JWFinancialcoaching@gmail.com – Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

The first question is whether or not it would be wise for a listener to take out a loan on their 401(K) to pay off their student loan from Sallie Mae. On the surface, a 401(K) loan sounds better than a student loan. Instead of paying the bank back the interest, instead you pay yourself back the interest. But with any kind of debt there is always a catch. Remember borrowing money to get out of debt does not work. We break down the pros and cons of each and share why from an interest perspective a 401(K) loan might be better, but from a risk perspective a 401(K) loan could be a disaster.

In addition we also take a question from a listener about what financial information you need to store with your will. Yes, dying is never a fun subject to talk about but one of the last loving things you can do on earth is to have all your financial data in order and in one place to make it easier for your heirs. One of the last things your spouse, children, and grandchildren need to worry about is where all of your money, retirement investments, insurance money, and other assets are located. But by having them in one place it will make things a lot easier.

Finally, after thinking about it for a while I have decided to cut back on the amount of times I blog each week. I will still do the podcast show notes each Monday and the Friday Financial Tidbit. That means I will be cutting out the Wednesday blog posts. This will free me up to do more webinars, speaking engagements, and guest posts on other blogs. Don’t worry; this does not impact the podcast at all and I hope to do more of the Debt Free Living podcasts as well. What this also means is that I am taking more guest posts. Please get in contact with me if you are interested in featuring a guest post on my blog. The topic can be anything to do with personal finance and must be an original post.

You can subscribe to future Podcasts through FeedburnerStitcher SmartRadio, or iTunes. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page. In addition, if you have enjoyed the show for a while now, please leave a review of the podcast on iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com – Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.

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