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To: The Ox who wrote (5323)	5/3/2005 5:35:29 PM
From: All Mtn Ski	Respond to of 5867

Hi Michael, I totally agree that the concept of being able to borrow from yourself via a 401k loan is a good one. Many people use the loan availability wisely but many don't. Using it for a first time home purchase is a wise use, using it for a vacation is not. Perhaps I'm a bit cynical (say it ain't so!), but in my experience dealing with people who were tapping their retirement plans for loans, they didn't have to justify the expense, unlike a Hardship withdrawal, so many did not use it wisely and defaulting on the loan is bad news. Our company processed THOUSANDS of defaults a year, so not everyone is wise with their money. I think sound money management should be taught in High School and College, and in some areas this is being done. Lending standards are so loose and lenders so aggressive, nowadays one can can qualify for a mortgage if one can fog a mirror. Hoem ownership is good, but not when one has to use an interest-only loan to afford it. A-M-S