If you’ve ever thought of pulling money out of your 401(k) to cover immediate expenses or debt, you might want to think twice. Preston, a 29-year-old from Austin, Texas, called into The Ramsey Show for advice on his $8,000 car loan. He’s about to be a dad, and was wondering if it would be “unwise” to pull money out of his 401(k) to pay off the loan before the baby’s arrival (1). Must Read “One hundred percent,” co-host John Delony said in a clip posted Jan. 17. “Terrible idea. Don’t do this.” “Absolut ...

Core Insights - The episode featuring a 29-year-old unemployed man highlights extreme financial dependency and manipulation of family resources [1][2] - The situation reflects a broader trend where parents are increasingly providing financial support to adult children, risking their own financial security [3] Group 1: Individual Case Analysis - The guest, Jason, accumulated over $60,700 in debt and has been financially dependent on his 73-year-old grandmother, borrowing $23,000 from her [1][2] - Jason has been unemployed since September and shows little initiative in job searching, spending $600 on unfinished bartending classes without gaining any experience [4] - His financial instability is exacerbated by a lack of savings, retirement funds, and a clear career path, raising concerns about future dependency as his grandmother ages [4] Group 2: Broader Financial Trends - Data from Savings.com indicates that 50% of parents with adult children provide regular financial assistance, averaging $1,474 per month, totaling nearly $18,000 annually [3] - Working parents are contributing 2.3 times more to their children than to their own retirement funds, jeopardizing their long-term financial security [3] - The financial support provided by parents often goes towards non-essential expenses, such as concert trips and personal sessions, rather than critical needs like retirement savings [5]