| Yes, it's your money of course you can. | | | | I recommend saving a few dollars and investing it for a |
| The 401(k) is simply a section in a bill passed by | | | | short period of time then using it to buy a house. Learn |
| Congress in 1978 to encourage Americans to save | | | | how to double your money [ every month. |
| money for retirement. Congress wanted a way for | | | | What are the Pros to using my 401k to buy a house? |
| people to save money free of State and Federal | | | | If you've been investing for a long time then you may |
| taxes. The Tax Reform Act was passed and | | | | have enough to put a 20% down payment on your |
| declared in it was Section 401 paragraph k declaring a | | | | house. |
| tax-deferred savings plan for employees. The 401k | | | | In today's economy it's becoming very hard to get a |
| plan offers: | | | | great home loan. You probably won't get as much as |
| - Free money matched by your employer | | | | you would have a year ago. If you want the best load |
| - decreased taxable income | | | | possible then you should really consider putting 20% |
| - automatic deposits from your paycheck | | | | down as a down payment. That can be a lot of cash |
| - peace of mind when you retire and need money | | | | and considering the economy this may not be possible. |
| Today, the 401k retirement plan is the most popular. | | | | A lot of people are considering using their 401k to buy |
| People are becoming creative with the ways they | | | | a house. While I may not recommend it, it's certainly |
| want to spend it. I get a lot of people asking me, "Can I | | | | possible. I What are the Cons to using my 401k to buy |
| use my 401k to buy a house?" and my response is | | | | a house It's your retirement money, what are you |
| always yes. | | | | going to use for retirement? I think you should think |
| Can I use my 401k to buy a house? Absolutely, it's | | | | twice before deplteting your retirement fund. Double |
| your money. You were the one with the job, you were | | | | your cash investments month over month so you can |
| the one who pulled the money out of your paycheck | | | | buy a housewithout using your 401k. |
| and you were the one who specified what to invest in. | | | | What are the alternatives to using my 401k to buy a |
| It's your money like any other investment. But I wouldn't | | | | house? |
| recommend you spending it on a house. I would be | | | | Look into quicker investments for making money while |
| more creative in finding alternative ways of making | | | | keeping your 401k safe. |
| money to buy a house. | | | | |