You work hard all of your life building up your retirement fund and the last thing you want to do is jeopardize your financial future. Many people will have financial difficulties in life and their first instinct will be to get into their retirement plan, this is never a good idea for many reasons.

Any time you withdrawal money out of your 401(k) plan or any other retirement plan you might have, you will encounter severe penalties from the government. These penalties can be very costly and you also will be shrinking the amount of money you will receive later in life. You also have to factor in how much money you will make off the investment of leaving the money alone. Emergency financial situations can often sway an individual to make bad decisions but there are other solutions available besides jeopardizing your retirement plan.

A payday loan or cash advance can be the perfect solution to an individual in need. You can use these loans very responsible if properly planned. A payday loan or a cash advance can be justified when compared against dipping into your 401(k) or any retirement plan. You can do the math and find out that the steep penalties that the government places on early withdrawals from retirement plans will be nowhere near the much smaller interest rates of a cash advance or payday loan. These small loans, while subject to much criticism, are designed to assist individuals in a short-term financial crisis. With such loans you can get the money you need fast and take care of your financial situation.

When you find yourself in financial need, think about the long term affects that you will have by digging into your retirement plan. Judge the situation accordingly and you will realize that the responsible way to borrow money in these types of situations is to get a cash advance or payday loan.