Newspaper article The Topeka Capital-Journal

Smart Money: Generous Lending Policy Works to Retirees Advantage

Newspaper article The Topeka Capital-Journal

Smart Money: Generous Lending Policy Works to Retirees Advantage

Article excerpt

Dear Bruce: I am a 68-year-old retiree drawing a military retirement and Social Security. I also have a 403(b) account with $450,000 from a former job with a nonprofit. It has a loan provision that lets me borrow money at a 4.5 percent interest. All my payments and interest go back into my 403(b) account.

Since I can no longer make contributions to the 403(b) doesn't it make sense to borrow all I can and repay it, increasing my balance by 4.5 percent? -- E.M.

Dear E.M: As long as you are certain that all of your payments and interest go back into your own account, why not? If you have monies earning less than the 403(b), it would make sense to transfer them. Most people, including me, would have probably missed the advantage.

Dear Bruce: I am retired and turn 80 in January. I worked for a number of companies. …

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