What is going onnow in the US?  Haven’t we learned anything from the housing boom and crash?  That our homes are not ATMs?  That we can’t keep cashing out equity to pay for our lifestyles?

Apparently not.  Here the New York Times presents an article where people are now able to get a Visa Debit Card linked to their 401ks.  WHAT are they thinking?  We as a society have enough trouble getting people to participate in 401ks and save for retirement.  We have to use auto-enrollment to get people to even save.

But now they are making it easier to get the cash back out?  For what?  Isn’t is supposed to be for our retirements?  Isn’t the point that we are supposed to live on less not and not have immediate gratification?

Fortunately the companies which manage the 401ks are outraged as well.  Calling it predatory lending practices.  Unfotunately I wish more companies would follow the lead of the Ping Company and not allow at all any 401k loans.  Why are people stealing from their future for the now?

I can’t believe the article thinks that 401k debit cards are necessary because banks are not treating homes like ATMs, and credit card companies are tightening loaning practices.  Hmm..perhaps it’s because people need to stop spending money.

Worse yet the article says 20-25% of people borrow from the 401k.  How can they do this?  They do realize they need to live on the money later right?  Of course the Federal Government, right now I called them drunken idiots, allow people to borrow 50% or $50k from their 401k.  I can barely think of a reason to borrow from a 401k.  Plus you do have to pay interest on the loan, just it’s to yourself.  Which makes people think it’s a GREAT idea. 

If a reader says medical bills, I’d respond hospitals work with you to set up a payment plan often free of interest.  They are interested in helping.  Also CC comapnies will let you charge your hospital bills.  Also you can discharge your medical bills if they are hundreds of thousands of dollars and you don’t lose your 401k.

But the article states that people woudn’t participate in the 401k if they couldn’t take out loans.  Hmm..I wonder what if we just made it mandatory like SS?  Everyone enrolls and saves?  Would there still be excuses?

The authors says we should treat people like adults and allow them the chance to use the 401k debit cards as needed.  I gotta say, crap on that idea.  A percentage of the population admits to not understanding their mortgage and look what happened?  I have to guess that same population of people can’t use credit cards and blame the lender?  They probably also are the people taking out the loans from their 401ks now.  How long until these people get into serious trouble using a 401k debit card and start to cry and whine about?

How long until the excuses start and finger pointing?  I am guessing 3-5 years.