LogFAQs > #970928953

Jaguar34 posted...

Thanks for the insight. Just like you said I was looking at one side of it.

And yes, many people have mentioned that the 401K can be very useful in the home buying process. I appreciate your insight because this is often a lonely journey

Absolutely. And yeah, my last pull was using a CARES act withdrawal in 2020 to get the down payment for my current house. Ive since repaid 2/3 of that back and will be repaying the rest this year.

In most cases, taking from your 401k isnt going to be the best approach and youre probably best off trying to just set it, forget about it, and never touch it as much as possible. But if youre using it to purchase income generating or other appreciating assets, that changes the game a bit since youre really just reshuffling your asset portfolio.

Whats dangerous is taking it out for luxuries, non-appreciating assets (cars, etc) or other one time expenses.