Resist Temptation To Dip Into Nest Egg
Lots of Americans have been laid off in recent years -- but experts say they should resist the temptation to dip into retirement savings.
Houston financial planner Michael Parmet says dipping into the 401k might be easy, but there are substantial penalties.
"They're hit with an income tax on it and a 10% penalty if they're under 59 1/2. So from a tax standpoint it's a bad place to go."
Parmet says there are plenty of better options.
"If you have any savings; if you have any stocks or even, possibly getting a home equity loan."
Parmet says laid off workers in their 40s and 50s need to be especially careful, because they may not be able to earn that nest egg again.
A new study shows 35% of those laid off are using retirement savings to pay the bills.