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