If you can't repay the loan, you may be considered in default, so you'll be taxed on the full balance, Jeff says. And if you're under 59 1/2 years old, you may face another 10 percent penalty.

The fifth problem, he says, is that the interest you're paying on a 401(k) loan is not tax deductible. And sixth is that most people who take out such a loan subsequently reduce contributions to their 401(k) plan because they're trying to pay back the loan.

But the "biggie," Jeff says, is negative number seven.

"It really affects your psychology toward your overall retirement savings, your overall financial plan and your overall debt management," he says. "It's way too easy to get into the habit of dipping into the 401(k) instead of just saving for things you need along the way. I'm a huge advocate of keeping that 401(k) in a loan-free zone."

Based on those statements, Eileen, you probably can imagine Jeff's recommendations.

"The real hard truth for Eileen probably is that they've overextended themselves, and to take a loan out of the 401(k) is not really going to solve anything," he says.

Jeff says that, instead of taking out the loan, Eileen and her husband should sell either their primary or summer home.

"That's tough to say, I know," he says. "Or, they should be realistic in how long they want to work. If they want to keep everything in place, then they'd better be willing to say maybe 10 or 12 years working is not realistic. Maybe we're actually looking at 15 or 20.

"There's no magic solution for her. There's got to be some realism on her part."

What it all comes down to is living within your means. That isn't fun, because it means I don't get a big-screen TV, and Eileen and her husband face tough decisions about their homes.

But I believe it is sound advice.

If you have a financial question, send it to gkratz@desnews.com or to the Deseret Morning News, P.O. Box 1257, Salt Lake City, UT 84110.

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E-mail: gkratz@desnews.com