Comments on: Tap Retirement Accounts For Down Payment?

By: Broke M.B.A.

Broke M.B.A. — Tue, 27 Oct 2009 22:22:53 +0000

Jeff, I was hoping to hear from someone who had actually gone this route. It sounds like your timing couldn’t have been worse. Sorry man. If you wanted to find the bright side, had you left the money in 401(k) it probably would have tanked over the past year anyways??

By: Jeff

Jeff — Tue, 27 Oct 2009 21:45:40 +0000

I agree with the master (Financial Samurai). I did it and hate the fact that I did. I haven’t calculated how much I’ve lost by doing it but I know my financial situation is worse because of it. Save up first. As I look back, had I have waited the house I bought would have be $40,000 cheaper. That would mean I would not have had to tap the 401K to begin with.

Good Luck

By: Financial Samurai

Financial Samurai — Tue, 27 Oct 2009 13:47:02 +0000

Good stuff man! Interesting to see that home prices rebounded for a 4th straight month this morning!

I better go buy another rental quick!

By: Broke M.B.A.

Broke M.B.A. — Tue, 27 Oct 2009 01:48:18 +0000

Financial Samurai – I definitely agree with you. My advice would be to wait and save up money, leave the retirement accounts alone, and purchase later when you are ready!

By: Financial Samurai

Financial Samurai — Tue, 27 Oct 2009 00:29:09 +0000

Broke – One long word for you “NOOOOOOOOOOOOOOOOOOOO”! Don’t do it. It’s absolutely nonsense.

If you have a chance, please please read my 30/30/3 rule for home buying. You’ll save yourself a lot of money and headache, as well as the rest of the homeowner population. This is how we got to this bubble mess in the first place.

So many honest, on-time paying homeowners got slaughtered b/c people overreached and bought what they could not afford.

Thnks man. No need to rush buying a home!