401(k) Cards: A Recipe for Disaster

Retirement funds have not taken a hard enough hit with the economic collaspe. Reserve Solutions, a provider of loan processing services, wants to make it even worse by enabling employees to have easier access to their retirement funds through the use of 401(k) debit cards. The ReservePlus Program would put an end to traditional methods of borrowing against your 401(k) which can be lengthy as well as costly. Access to your retirement funds would be as easy as writing a check, making a withdrawal from the ATM or buying a Big Mac when you get the urge to. Not good. In what is already a cash strapped society, people are more likely to be tempted to use money meant for living out their golden years tomorrow without financial worry.

Simply put, tonight's dinner should not have to be purchased with retirement funds. Times are hard, I know. And though I don't think people should starve to death, I do think this is a recipe for disaster. Perhaps good ole fashioned saving for a rainy day is the best alternative to 401(k) debit cards. What do you think?