Hello @Stephon Shaw,
We just had a presenter speak about this last month. There are two ways that would make sense. (This is the information I was taught, please do your own due diligence to verify tat the information is correct)
- You can borrow up to $50,000.00 while paying back interest to yourself. Not a bad deal to play the bank AND invest.
- You can take out money for use of downpayment on your home. There may be a "hardship penalty" subject to a 10% tax. (Check your policy for 1 time exemptions)
Again, I would do your research to see if this is the right choice for you.
Part 2: Wise Investment Advice:)
My advice would be to NOT use your retirement account UNLESS you are going to get a better return with the investment you will be making.
- This might be buying a home and getting a COC return of 20% while you are only paying yourself 3% interest. Therefore getting 17% return. (More like 23% because you're paying yourself back)
- Whereas if you just left it in the stock market you might only be getting a 8% return.
I cannot wholeheartedly advise that you use it for a purchase of a primary residence, once you put that money down on that house it is "useless". That means you cannot access your equity, it is a sitting duck bringing no money back into your pocket. The goal is to have your money go make friends and have those friends make friends.
Part 3: Best case strategy
Use that money to purchase an investment AND a home. Look into house hacking, you can make money and have a place to live:) Good luck Stephon and remember the options are endless. Just make sure you are being wise with your money.