Not recommended: Borrowing from retirement to buy a home.

Written By Mark Schweikert

True or false? You can borrow from your retirement account to buy a house.

While this is technically true, and it can be tempting to leverage your 401(k) funds, it’s not advisable to use funds borrowed from your retirement account to pay for a house.

Financial advisors generally say the cons typically tend to outweigh the pros as this puts your retirement savings at risk.

People who dip into their retirement funds early also run the risk of missing out on appreciation, facing tax penalties, placing long-term strain on their budget, and more.

Mark Schweikert
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