It’s evil because youngs don’t have any money in their 401Ks precisely because they’ve been putting all their money towards student loans, lol.
You know who has both 401Ks and student loans? Old people that went back to school.
I swear it’s like they’re trying to ramp up generational conflict.
It takes money from your 401k. Which you can do anyway but I guess now Rand will reduce the withdrawal penalties?
Why stop there, allow people to use this ‘money’ thing to buy food and he could eliminate starvation!
Yeah, it takes away your ability to retire.
Now you can use your safety net as your bootstraps!
LOL I am not going to send my retirement money to pay off my student loans. I’m going to pay the absolute minimum I need to pay to not have it impact my credit and wait for the bail out like a smart monkey. There’s 0.0% chance that I ever pay this bullshit in full. Every year more millenials vote. The politicians will be fully pandering to me before I hit 50.
When we start forming the guillotine list, Betsy fucking DeVos, man.
Coming soon. The retirement crisis, dumb millennials have no money in their 401ks!
But their student loans are paid!
Pretty much no one is going to be able to retire pretty soon/already anyway.
You need money in your 401k AND the money in your 401k that you take out to pay student loans is money you won’t have for retirement. So it doesn’t really help you get ahead by much, except that I suppose this means that you would be able to use your employer’s 401k match (if you have one) to pay down student debt which is semi useful.
Rand and his colleagues would also gut Social Security if they could, so it’s not like they’ve got a plan for when millennials blow their meager retirement savings to pay the interest on their outrageous student loan balances.
Keith Law does a good job punching holes in Rand’s idea. He has an economic degree from Harvard. Read the comments.
https://mobile.twitter.com/keithlaw/status/1202585248711823360
Use your retirement to pay for your college is very Newspeak.
Refill your IRA with a reverse mortgage.
The important thing is to keep moving the money around from account to account so financial service industry professionals can take a transaction fee each time. Their vacation properties and luxury sedans aren’t going to pay for themselves, you know.
I didn’t read Rand’s proposal, but typically for these kinds of “loan” programs from retirement savings plan if you don’t pay the money back into the 401k within a prescribed period then you’re assessed a tax on the withdrawal. It seems very unlikely that they would (intentionally) do a program where you essentially never pay tax on the original employment income. Usually the best you can do under these programs is defer the taxes to some future date.
Except those 1000’s they are taking out now would have made the most money for retirement. They are paying off cheap students loan with way more expensive assets. And everyone involved knows it and doesn’t care, and that’s why it’s evil.
