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Hello all. I’m Pamela. 6th grade science teacher
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No and you shouldn’t unless you’re in a really bad spot.
Can you explain why not
I did. Found out I was having a kid, needed a bigger home, and saw a RE opp. Per the appriasal, I was right about the opp and it's a nice family home to boot.
There are reasons to do take the 401k loan and/or withdrawal but I'd only recommend that seasoned investors do so for non-emergencies. The main reason not to pull the money is the high likelihood for most investors to gain much less in their alt. investment (adjusted for taxes and inflation) than they would have if they left the retirement funds untouched. The other reason that most people should not take the withdrawal, specifically, is because they don't fully understand the 3yr tax liabilities and the payback /cost-benefit scenarios therein.
With that said, if you're a proven investor and it makes sense for both your short and long-term plans, go with God.