Oregon Measure 118, a proposed amendment to the state constitution that would allow individuals to take out loans against their own retirement accounts, is generating mixed reactions among voters and financial experts. The measure is set to appear on the November 2022 ballot, and proponents argue that it would provide much-needed flexibility for individuals facing financial hardship.
One of the main advantages of Measure 118 is that it would allow individuals to access funds from their retirement accounts without facing hefty penalties or tax consequences. This could be particularly beneficial for those who have experienced unexpected financial setbacks, such as a medical emergency or job loss. Supporters also argue that the measure would give individuals more control over their own finances and help them avoid falling into debt.
However, critics of Measure 118 raise concerns about the potential risks associated with taking out loans against retirement accounts. They point out that such loans could jeopardize individuals’ long-term financial security, as they would likely miss out on potential growth opportunities and compound interest over time. Additionally, taking out loans against retirement savings could lead to a higher tax burden in the future.
Financial experts suggest that individuals carefully weigh the pros and cons of Measure 118 before making a decision. While accessing funds from retirement accounts could provide temporary relief, it is important to consider the long-term implications and potential consequences of such a decision. Voters will have the opportunity to weigh in on the measure in the upcoming election and decide whether the benefits of increased financial flexibility outweigh the drawbacks of potentially compromising their retirement savings.
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