A growing number of people are raiding their retirement plans to keep their homes, a huge mistake, warned personal-finance expert Suze Orman, who will be speaking in Denver on April 26.
“Many people are tempted to take a loan out from a 401(k) or IRA to play catch-up on the mortgage,” she said.
Those struggling borrowers will often end up losing their homes anyway — and impoverishing their retirement as well.
“You are never to use money in a retirement account to catch up on a mortgage,” she said.
If a lender won’t reason with or help out a borrower, then it may be better to let a home go sooner rather than later, she said. Retirement assets, which are protected from creditors, should never be raided, she said.
Orman, author of the best- selling book “Women and Finances,” will speak at the inaugural Post-News Colorado Women’s Expo.
Her speech will address issues raised in conversations she has with women attending the event, she said.
Orman, known nationally for her financial advice, has focused on women and finances for the past year.
Women are often so busy taking care of children, spouses, parents and siblings that they ignore their own needs, she said.
Many women are struggling to help their families overcome poor financial moves like taking out risky mortgages and using home equity and credit cards to spend more than they make.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
Colorado Women’s Expo
Schedule: April 26, 10 a.m. to 9 p.m.; April 27, 10 a.m. to 6 p.m.
Site: Colorado Convention Center, 700 14th St., Denver
Speakers: Personal-finance author Suze Orman; Bob Greene, fitness trainer to Oprah Winfrey; Stacy London of TLC’s “What Not to Wear”
Tickets: $12 per day at the door; advance discount tickets also available at King Soopers and Ticket West outlets
