Loans, work/life issues spark letters

Of all the topics I've addressed lately, 401(k) loans and work/life balance seem to be attracting the most reader interest. So this week, I will once again share some of your thoughts.

Regarding recent columns on the pros and cons of 401(k) loans, a reader named Gina wrote to say she is glad she borrowed from her 401(k).

"I am so thankful that I was able to do that when I was trying to get out of a bad (abusive) marriage," she wrote in an e-mail. "I had no other way to get the down payment for my new condo. Being able to take out the loan to purchase my home probably saved my life.

"At the time I did not mind being double taxed. Recently I was able to pay off my 401(k) loan by taking out a second mortgage on my home. So at least now the interest is tax deductible. Thanks for letting me share my story."

Thank you, Gina, for writing. Your story illustrates something I hope people remember as they read this column each week, namely that one size does not fit all when it comes to financial advice. While similarities may exist, every person's financial situation is unique and should be judged on its own merits.

Another reader, Verl, wrote to emphasize a con of 401(k) loans that has nothing to do with double taxation. As he pointed out in his e-mail, "if you get laid off from your job where you have your 401(k), you must repay the loan within 60 days or face distribution penalties from the IRS. I doubt you'll be in a good position to repay that loan if you're out of a job.

"For me, that is too much risk to take. Also the fact that if I take out a 401(k) loan, I will be tied to the company I'm working for unless I want to face paying it off if I decided to quit that job. Puts a damper on whatever signing bonus I might get from another company, or if I decide to start my own business."

Good reminder, Verl.

Regarding my recent columns on spending time at work on personal tasks and trying to find work/life balance, a reader named Joshua e-mailed me his unique point of view.

"As an employer, I don't care whether my employees spend 20-30 minutes taking care of personal issues while at work," he wrote. "Heck, I don't care if they spend four hours per day taking care of personal matters, and I also don't care if they come to work at all. All I care about is that they get the work done that needs to get done.