As the notion of 401(k) credit cards withered significantly less than ailment, one offer showcased brand new dual-goal characteristics out-of You

As the notion of 401(k) credit cards withered significantly less than ailment, one offer showcased brand new dual-goal characteristics out-of You

IX. Results

Over 2 decades back, Nobel Award champ Franco Modigliani complex a method getting providing 401(k) credit cards with the objective of making it easier for specialists to help you withdraw using their old age profile to fund brief-term consumption need (Vise, 2004). S. outlined contribution arrangements. DC old-age profile symbolizing an evergrowing tiny fraction of us family riches are being used by personnel so you’re able to one another funds old-age old-age protection, also to help safeguards newest consumption demands. The master plan loan feature is among the popular yet understudied pre-old-age exchangeability options that come with 401(k) preparations.

This papers features searched the consequences of employer plan mortgage plan, therefore ending that loan structure can also be and you will has an financially important effect on participant borrowing. Leer más