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Taking a loan against your 401(k) savings is generally a bad idea — but using the money as a short-term “bridge loan” may be an exception, according to Blair duQuesnay, a certified financial planner based in New Orleans.
“I’ve always been very anti-401(k) loan,” duQuesnay said. “However, I have found there are some instances in which it makes sense.”
In fact, she recently employed that strategy herself when buying a new home. DuQuesnay, an investment advisor at Ritholtz Wealth Management and member of CNBC’s Advisor Council, used a 401(k) loan as a short-term pot of cash for a down payment.
Borrowing against retirement savings served as a bridge loan that…