Don't Borrow from Your 401k (Do This Instead)

Описание: Borrowing from your 401k can feel like a smart financial move. After all, it’s your money, there’s no credit check, and you’re “paying yourself back.” But in my experience as a financial planner, 401k loans are one of the most dangerous decisions in retirement planning.

In this video, we break down why we recommend avoiding 401k loans. Not because of complicated spreadsheets or market forecasts, but because of what these loans signal about cash flow, habits, and long-term financial behavior. Even when interest rates are high and the math appears to work, the real cost of a 401k loan is often psychological—not financial.

We discuss:
→ Why 401k loans sound so appealing on paper
→ The behavioral traps most people don’t see coming
→ What borrowing from retirement accounts usually indicates beneath the surface
→ The risks tied to job changes and accelerated repayment
→ Why “paying yourself back” can quietly undermine long-term freedom
→ What to do instead when you need liquidity

This conversation is especially relevant for families with significant investable assets who want to protect their long-term independence while making disciplined, intentional decisions today.

Timestamps:
00:00 – Don’t borrow from your 401k
01:24 – Why 401k loans are so tempting
03:39 – What 401k loans really signal
05:08 – My own 401k loan mistake
06:08 – The real cost of 401k loans
06:38 – Why high interest rates don’t change my mind
07:31 – What to do instead
08:11 – When a 401k loan might be considered
08:47 – Key takeaways
09:40 – Work with us

👉 Want to achieve financial freedom for personal significance? Work with us at https://www.f5fp.com

About F5 Financial Planning:

At F5 Financial Planning, we help individuals and families align their finances with what matters most so they can live lives of Freedom and Significance. We are a fee-only, fiduciary financial planning and investment management firm, meaning we don’t earn commissions or sell products — our only commitment is to our clients’ best interests. We provide comprehensive financial planning, investment management, tax-efficient strategies, and retirement planning for families, corporate executives, and entrepreneurs. Our team serves clients nationwide through virtual meetings and from offices in Illinois, Georgia and Florida.

At F5, our goal is simple: to help you gain confidence, clarity, and control over your financial future so you can focus on the people and passions that matter most.

Visit https://www.f5fp.com to learn more about our services and planning process.

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Advisory services are offered through F5 Financial Planning, LLC, an SEC-registered investment adviser. This content is for educational and informational purposes only and should not be considered personalized financial, investment, tax, or legal advice.

Viewing these videos does not create an advisory relationship with F5 Financial. All investments involve risk, including possible loss of principal. For guidance specific to your situation, please consult a qualified professional.

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