More Financially Strapped Americans Hitting Up Their Retirement Plans, Insurance Policies For Quick Cash

The Wall Street Journal reports:

• A growing number of Americans, maxed out on credit cards and unable to get home-equity loans because of tighter lending standards, have found a new source of emergency cash: retirement plans and insurance policies. While tapping these funds may seem like a convenient way to address an immediate need, such as a looming medical or tuition bill, financial advisers urge caution. They say that consumers should carefully weigh the ramifications -- the possibility of a big tax bill and far less savings in retirement, for example -- before dipping into a 401(k), Individual Retirement Account or life-insurance policy.

For more, see Cashing Out (Retirement plans and insurance policies offer a way to get money quickly. But there are real disadvantages).