👉 The "mortgage your 401k" phrase is a term often used to refer to taking out a loan from the Federal Reserve System (FED) for your retirement savings account. This term means that you are essentially borrowing money from the financial institution, which you can use to save for your future.
Let's look at an example sentence using this slang: "I decided to take my 401k and mortgage it out with a loan from the Federal Reserve." This sentence is unsettling because it implies that you're taking advantage of a government program intended to help people save for retirement. The use of "mortgage your 401k" itself carries a sense of entitlement, indicating that someone who's saving for their future doesn't need to borrow money at all. Keep in mind that this term is not generally used casually and can be considered controversial if it leads to any financial or ethical issues.
