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I would pay PMI before I would consider hitting my retirement account. A fully funded retirement plan should be a top priority at 33, IMO.
At 33, I would plan for retirement without Social Security, and only consider SS as a retirement bonus.
Of course, with business income, there are planning and investment vehicles that should be investigated with a qualified planner, most of whom I think would echo my thoughts above.
hmm...I didn't realize that Millennials actually still believe there will be Social Security for them. I'm Gen-X and always chuckle when I receive my statement showing what I will receive. While that would be nice to get; I am absolutely not counting on it being there.
Well I feel the same way about 401k, it's not very different from investing in the stock market, so why not use it now, when we are young enough to really benefit from it? 401k and SS are neither guaranteed... or if they are the amount it's worth by the time you're eligible to draw it isn't guaranteed.
Just like I don't count on an inheritance from my parents. By the time they die I will be way past my prime and already have money, so an inheritance is not very useful when you already have money. It's like credit, you don't have it until you no longer need it.
Well I feel the same way about 401k, it's not very different from investing in the stock market, so why not use it now, when we are young enough to really benefit from it? 401k and SS are neither guaranteed... or if they are the amount it's worth by the time you're eligible to draw it isn't guaranteed.
Just like I don't count on an inheritance from my parents. By the time they die I will be way past my prime and already have money, so an inheritance is not very useful when you already have money. It's like credit, you don't have it until you no longer need it.
I'm 33 and I'm the same way. I have a 401K but I'm not relying on it for retirement like many people are. 401K is basically a glorified stock market account, so if it tanks by the time I'm 60, I'll have nothing. Always better to diversify so you'll have a backup plan.
Anyway, to answer your question, yes, I took 5K from my 401K for a down payment and it shouldn't' impact you when it comes to filing taxes. That 5K was repaid fairly quickly
Well, would this be a legitimate hardship? Choosing to buy a home at a time when you don't possess the down payment sounds less like hardship and more like an impulse or bad planning. IMHO "hardship" would be something like large medical bills, loss of a job, loss of a car, unexpected property repairs, etc.
Quote:
Originally Posted by adjusterjack
Before you commit to it I suggest you read the IRS page about hardship withdrawals from a 401(k) plan.
Be careful about doing this. I would look toward a mortgage program you could do 3.5% or 5% down if possible. Call your mortgage banker and discuss options to see if you could even qualify for down payment assistance.
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