Hi! I have a friend who wants to take a 401(k) loan and use that money as a down payment on her house. I have tried to tell her that I don’t think it’s a good idea because she’s robbing from her future self but she thinks that she’ll still be investing because she’s going to be “investing” in real estate. I know that your primary home isn’t the best investment. I also know she has a pretty solid 401(k) because she’s been contributing for a long time and I would hate to see her rob her future goals just to get a house. She also has people who have already done this and they don’t see any flaws in their plan. What can I say to help her understand that it might not be the best idea to take from her 401(k)? Or am I wrong and it is a good idea?? I’m definitely not the czar of investing!
I don’t think I’d do it, hopefully she can find another way to get a house