Sign up to save your podcasts
Or
Share Inviolate Investments
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Inviolate Investments
In this episode of Talking Real Money, Don and Tom sound the alarm on a troubling trend: more people are dipping into their 401(k)s for emergencies. While hardship withdrawals are allowed under IRS rules, they come with serious penalties, taxes, and long-term setbacks. The hosts stress the importance of building an emergency fund before maxing out retirement contributions to avoid turning your future into a piggy bank. They also respond to questions about how to find fiduciary advisors and critique a high-yield income portfolio packed with risky, expensive ETFs—offering a reality check on chasing returns without understanding the risks.
0:04 Retirement talk kicks off with 401(k) praise—and a warning
2:08 Hardship withdrawals hit record levels; 5% of participants tapped accounts
3:50 Emergency fund should come before heavy 401(k) contributions
5:25 Auto-enrollment rises, but so does temptation to pull money
6:06 Weigh a 401(k) loan before a withdrawal—less damage long-term
7:47 IRS penalty exceptions outlined—some hardship cases qualify
9:35 Adulting tip: build that emergency fund, even if it’s hard
10:57 Better to borrow elsewhere (even a credit card!) than touch your 401(k)
12:59 SEP IRAs great for self-employed—but require discipline to fund
14:17 Listener asks why they don’t mention NAPFA more—they do!
17:25 Listener portfolio review: lots of income ETFs, lots of risk
20:33 Many holdings have high expense ratios, junk bonds, or complex strategies
22:33 Bottom line: get a professional review—and simplify the portfolio
Learn more about your ad choices. Visit megaphone.fm/adchoices
View all episodes
By Don McDonald
4.5
577577 ratings
In this episode of Talking Real Money, Don and Tom sound the alarm on a troubling trend: more people are dipping into their 401(k)s for emergencies. While hardship withdrawals are allowed under IRS rules, they come with serious penalties, taxes, and long-term setbacks. The hosts stress the importance of building an emergency fund before maxing out retirement contributions to avoid turning your future into a piggy bank. They also respond to questions about how to find fiduciary advisors and critique a high-yield income portfolio packed with risky, expensive ETFs—offering a reality check on chasing returns without understanding the risks.
0:04 Retirement talk kicks off with 401(k) praise—and a warning
2:08 Hardship withdrawals hit record levels; 5% of participants tapped accounts
3:50 Emergency fund should come before heavy 401(k) contributions
5:25 Auto-enrollment rises, but so does temptation to pull money
6:06 Weigh a 401(k) loan before a withdrawal—less damage long-term
7:47 IRS penalty exceptions outlined—some hardship cases qualify
9:35 Adulting tip: build that emergency fund, even if it’s hard
10:57 Better to borrow elsewhere (even a credit card!) than touch your 401(k)
12:59 SEP IRAs great for self-employed—but require discipline to fund
14:17 Listener asks why they don’t mention NAPFA more—they do!
17:25 Listener portfolio review: lots of income ETFs, lots of risk
20:33 Many holdings have high expense ratios, junk bonds, or complex strategies
22:33 Bottom line: get a professional review—and simplify the portfolio
Learn more about your ad choices. Visit megaphone.fm/adchoices
More shows like Talking Real Money - Investing Talk
View all
The Clark Howard Podcast
5,396 Listeners
Sound Retirement Radio
432 Listeners
Your Money, Your Wealth
763 Listeners
Jill on Money with Jill Schlesinger
1,916 Listeners
The Stacking Benjamins Show
1,958 Listeners
The Retirement and IRA Show
729 Listeners
Retirement Answer Man
1,282 Listeners
Retire Sooner with Wes Moss
431 Listeners
Retirement Starts Today
488 Listeners
Big Picture Retirement®
496 Listeners
Stay Wealthy Retirement Podcast
554 Listeners
Bogleheads On Investing Podcast
585 Listeners
Sound Investing
330 Listeners
Talking Real Money Minute - Investing Advice and Money Musings
14 Listeners
The Rob Berger Show
147 Listeners
Retirement Planning Education, with Andy Panko
704 Listeners