401K vs. stock plan for house down payment? (purchase, work, company)
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So we are buying a house and thought about pulling some money out of my 401k to apply towards the down payment.
I also have a stock purchase plan through work and I could withdraw from it as well if necessary to get the money. Does it make more sense to take from the 401k, or should I take from the stock purchase plan (less penalty, taxes?)?
For the record I've been with the same company for 9 years and have NEVER touched my 401k or sold a single share of stock during that entire time as I'm anal about it but this is probably one of two circumstances I consider worthy (child's education being the other). Touching our savings is out of the question.
if you cant afford the house without hitting the 401k you cant afford it.. money is like fighting a war.. you have all these different fronts to fight.. pulling from 1 front to sure up another front may win you the battle but you will loose the war.
"touching our savings is out of the question"??????
The "savings" is where? A bank? What sort of returns do you get on that? Are these savings post tax dollars? Are there going to be tax consequences from using them?
Unless I am missing something I think your preference ought to savings first, then Employee Stock Purchase Plan( you probably have capital gains to pay and maybe some restrictions on when yup can participate again)and lastly 401k, where you would have the above restrictions plus be giving up potential of tax advantaged returns...
How can you save up for a downpayment in anything but " savings"?
401K is a no-no. Money goes in there but doesn't come out untii you retire.
Forget you even have a 401K when you start looking around for "extra" money..that is not extra.
I'm with chet on this..savings first than stock plan and forget even thinking of touching the 401K.
If you don't have enough with savings/stock plan, then you don't have enough and need to wait and save some more.
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Um, I don' t understand...
