I'm no finance expert but the move to "Lendable" funds sounds a bit scary to me. Seems that means the institution can now lend the huge amount of 401k investments in these funds, which you'd think could increase risk. I don't want my retirement savings going to this green/esg crap.
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I think I might be getting cynical in my old age but experience suggests that if a finance rule is ever changed then it is seldom for our benefit.
Funny how you have to bend over backwards and pay a penalty to access your own money, but everyone else gets to use it however they like.
It could be that you can now actually take a loan out from yourself and pay your 401K back with interest to yourself. I had this happen back in 2010 with a company I used to work for. You could only borrow up to 50% of the 401k balance I belive but that could have changed. If the institution keeping your 401k is actually going to lend YOUR money out, this seems highly illegal. If this is the case, you might discuss this with an attorney.
Yeah, while it could mean that I'm guessing it doesn't, but that's just a guess. I found this, which isn't really helpful:
https://www.nasdaq.com/glossary/l/lendable-funds
then you'd better buy gold, fren
They already invest itinerary the stock market which is a loan in essence.
If this is on your personal 401k account statement, it means that you can borrow from it. Usually it's better than other sources of credit, if you need to get cash.
Most 401k plans have money that isn't "vested" to you, in that the company contributions accrue to you in percentages according to how long you've been there. It shows up in your account, but the company takes it back if you leave the company early. But after enough time they can't take it back anymore and then it becomes fully vested, i.e., it's yours. And if they have a loan provision, that means it's lendable.
That's the most likely explanation, and it's a good thing for you.
I moved mine to a cash position.
So has Warren buffet,as much as practical. Most everything is overvalued.
I've been wrong before, think about it and do what you think best.
Not sure if this is related to the difference between the "Non-Lendable" and "Lendable" fund:
https://www.blackrock.com/institutions/en-zz/solutions/securities-lending
Edit:
Also found this (different from the fund I'm curious about but I'm guessing this is what a "Lendable" fund means):
https://www.blackrock.com/us/individual/literature/summary-prospectus/sumpro-lpi2060-p-us.pdf
So I'm guessing it is about lending assests in the fund to other financial institutions.