https://www.youtube.com/watch?v=xr8cAp9ygAQ

Piggy banks may seem best suited to our childhood era.  We mentally organize them with wagon-rides, tooth fairies, and the endless pencil-sharpening of early grade school.  But as adults, we need and use piggy banks; they just come in a different form.  When people need money for life’s setbacks and lean times, one of the most accessed “piggy banks” is the 401(k), says Richard Rubin and Margaret Collins, in the Bloomberg article, Early Tap of 401(k) Replaces Homes as American Piggy Bank.Financial products are designed for a specific job.  They may disintegrate when called upon for side jobs outside their area of expertise.  The 401(k), intended for retirement planning, presents serious concerns when doubling as a piggy bank.  Taxes and penalties add hardship in some of life’s darkest financial times when money is tight.

This article addresses the market and social forces that caused this phenomenon of this shift in asset choice.  It honestly assesses the problems with using the 401(k) as a piggy bank and proposes solutions.

In addition to discussing the points of this article, we’ll separate fact from opinion.  We'll help you think through the savings and protection component of your personal economy.  Then, you’ll be able to progress toward time and money freedom, while best handling financial challenges along the way.

Table of contents* Why You Need a Piggy Bank* Where a Piggy Bank Fits into Your Cashflow Creation System* The Problems with Using a 401(k) as a Piggy Bank* The Money is Not All Yours* A Penalty to Use Your Money* Penalties in the Billions* Required Repayments Limit Flexibility* A Retirement Crisis* The Systemic Financial Crisis in a Different Light* #1: Compartmentalized Money* #2: Lack of Accessibility* #3: Lack of Guarantees* Average vs. Actual Returns* The Shift from Using Home Equity as a Piggy Bank* Suggestions to Fix the Problem* The One Question We Should Ask Instead to Gain Control* A Better Alternative to Store Cash

Why You Need a Piggy Bank

Just because you’ve outgrown the childhood scrapes, bruises, and dirt under the fingernails doesn’t mean you’ve outgrown the need for a piggy bank.  One of the most predictable financial needs is to have accessible cash that you can