Will That Be Cash, Credit or 401k Debit Card?

Monday Jan 12, 2009 – By Arlice Nichole

Prepare for another financial crisis decades down the road, maybe sooner with the issuance of 401k debit cards. It’s exactly what it sounds like. A debit card linked directly to your retirement account just like a regular checking account. ReservePlus, a provider in 401k loan processing, is the company that has made the 401k debit card possible. The scary thing is that some companies have already begun to offer this option to their employees. Among the reasons, less paper work for 401k loan processing and people not wanting to be tied off from their money just aren’t valid enough reasons to put so many at risk of having little to no savings at all when the time comes for them to leave the workforce. Not only does this promote irresponsibility (which is part of the reason the economy is the way it is today), but with the 401k debit card, we’re sure to see a lot more of the elderly ringing up fast food orders in the future. I like to think many of these senior citizens get bored while in retirement and working a part-time, low paying job keeps them busy and active. But I’m afraid this is not the case with many. Also, with more women outliving men, this would only put many women at risk of living and dying in poverty at their old age.

So what do you think: yay or nay to the 401k debit card?

Glennisha says:

January 12, 2009 at 4:39 pm

Nay! Girl this is just another way of saying SPEND IT NOW BECAUSE WE WON’T HAVE IT LATER! People better get with it and catch on! We have to save up ourselves we can NO longer depend on retirement plans, social security, and 401ks….

↑ Reply

Alisha says:

January 12, 2009 at 4:59 pm

I say nay! It’s a trap, just like the debit card was. I SO guilty of swiping nonstop. My number wore off of the bank card and I never have cash on hand. I’m sure if I didn’t have one, I’d spend a lot less.

I agree with Glennisha. I work in the financial literacy sector everyone is so dependent on their company’s contributions to their retirement plans. That is only a perk and only used when it’s cost-effective for the company. WE have to save for OURSELVES.

Robin says:

January 12, 2009 at 5:37 pm

Nay! Very bad idea !

j val says:

January 12, 2009 at 8:09 pm

NAY! This is so ridiculous…and scary. Alisha is right, “save for OURSELVES”

Upscale Swagger says:

January 12, 2009 at 11:09 pm

The idea of it doesn’t sound so bad since everybody is looking for some sort of bail out. In reality, it isn’t really such a strong idea and definitely will only lead to problems in the future. Nay!

Execumama says:

January 14, 2009 at 11:41 am

Definitely NAY! What a short-sighted move to dip into your 401K for whatever “urgent” matter (read: flat panel tv) that you just cannot live without! Man, these are scary times we live in, people!!

Arlice Nichole says:

January 14, 2009 at 6:30 pm

@Execumama, You’re right! I trust they’ll only get scarrier. Sigh