Tod Ruble of Custodia Finance speaks to Good News on the risk of borrowing from retirement…
AMERICANS RISK LOSING BILLIONS OF DOLLARS IN SAVINGS
Families Lose Billions of Dollars in 401K Benefits without Insurance to Cover Loans
In todays tough economy, many families have been hit by job loss, a pay cut or pay freeze. Rising costs in everything from groceries to gas leave families with nothing to fall back on in the event of a medical emergency or unexpected household repair. With such limited resources and banks not lending, many families have no other choice but to borrow from their 401K benefits with the risk of losing some of their savings.
If a borrower cannot repay an outstanding 401K Loan because of death or disability his or her retirement savings may be at risk. The borrowers loved ones may be left with less than 20 percent of the original balance of the savings plan after state and federal taxes have been paid on the outstanding loan. Unfortunately, approximately six billion dollars of retirement assets are unnecessarily lost each year when uninsured 401K loans are defaulted due to death or disability.
In order to protect the families who chose to borrow from their 401K benefits, members of the protectmyretirementbenefits.com coalition are asking Congress to help educate the American public about the risks. Schedule an interview with the founder of the coalition to find out:
The risks of borrowing from your retirement savings
The benefits of insuring loans
What to you need to know when looking for savings insurance
For more information please visit: www.custodiafinancial.com
MORE ABOUT TOD RUBLE:
Mr. Rubles career has spanned commercial real estate, financial products, insurance and investment banking. His proven successes in identifying emerging trends and building successful institutional quality platforms led to his appointment as Chief Executive Officer of Custodia Financial in March 2009.
Personally recruited and selected by the Chairman of Custodia Financial to evaluate, create and execute a corporate strategy, Mr. Ruble is working to champion a comprehensive solution to the systemic problem caused by forced early withdrawals from 401(k) plans.