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Should I Pull From My 401(k) To Buy A House?

The Ramsey Show Highlights 151 views

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Dude has 108k in savings and dave says he's broke! Yikes I'm screwed!!
Comment from : @ericestes2929

This is so shitty I know it’s ridiculous to lose 35 of your saved 401K However - I can’t imagine ever owning a house in my lifetime I keep thinking, what is more important to me, living my life to the fullest when I’m young or when everything hurts and I’m too old to appreciate anything I may never own a home and that’s sad
Comment from : @AndrewCortesi

This video is so dumb First, you are not losing the 25 on taxes You have to pay that when you take it out in retirement (unless it is roth, in which case you arent paying taxes on it - except maybe growth - anyhow) It is not a question of "if," it is a question of "when" And you pay the 25 on your growth, too The cost is the 10 and that is it PLUS, how do you answer this question if all you know is how much dude is making What about whether he or his wife have pensions? What about considering the housing market brbrThis is complete horse puckey advice!
Comment from : @HaroldHoffman-o3v

His insurance should have rebuilt his house
Comment from : @RP-bx5un

I started investing in dividends with my taxable account I used the buy and hold strategy in my Roth, adding some Berkshire B stock, SCHD, and an S&P 500 and total market exchange-traded fund
Comment from : @ChristopherAbelman

The guy has $108,000 in the bank and Dave says he's broke? Okay
Comment from : @bobcalvert7194

Dave is a one trick pony and even when 100 correct sounds like a condescending prick All his books can be condensed into a single 30 minute interview
Comment from : @generationrabbithole8563

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234,800 Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer
Comment from : @Donnafrank-k6e

47 year old needs to hustle harder if he making $55k/year
Comment from : @samman4602

I'm new to stock and crypto I feel like I’ve missed out on good buying opportunities by investing at the wrong times With a $450K yearly income, I'm considering putting my savings into the market Do you think I should learn to invest myself or rely on a financial advisor? I'm getting frustrated trying to find the right coins on my own
Comment from : @MablePauls

I turned 25 this year and grew up watching my parents struggle financially from making the same decisions over and over I Found myself on the same path due to lack of knowledge up until about 2 years ago While I don’t fault my parents for not teaching me finance, I now see how important it is to learn at a young age Thankful for videos like this!
Comment from : @epicbagelswag

This never makes sense brbrThe steps say down payment before investing 15 So (assuming no penalty) the money in the 401k was being saved and growing So why not pull out
Comment from : @jabdeeznuts

Thank the Lord! I thought it said "to buy a horse"
Comment from : @NfidelNet

The rise in tax rates is why I decided to roll over my 401k to a Roth IRA I don’t want to be 59 and paying taxes on withdrawals from my retirement account
Comment from : @Daniel-b1s3s

Dave "You shouldn't have more than half of your income tied up in a car" brCaller "it's actually 1/3 our income:" brDave "Same thing!"
Comment from : @michaelrdangelo

The assumptions this guy makes is ridiculous Ask more questions get more information and give an educated answer Not everyone is Dave R so the solution that works for you doesn’t work for everyone Plus Dave is eating his words considering houses went up 20 2021 and 2022 Try getting a 40 return on your 401k in two years
Comment from : @christianpeacore6141

Short answer, no Long answer, no no no no no
Comment from : @bridgecross

Why didn’t you tell him to take a 401k loan that’s different than pulling out the money from a 401k…
Comment from : @Obiwan9

Calling somebody broke with 108k thousand in Savings is hard to make sense of lol
Comment from : @SlimBone1105

A 401K is a great way to retire with 1 or 2 million dollars and not be poor in retirement There’s just one catch - you have to actually put the money in the 401 K for 30 years and NOT TOUCH IT If you treat your 401K like a revolving bank account you will become one of the 49 of Americans who retire with bupkis
Comment from : @robertthompson5908

but that home will go UP in value so sure 35 so called percent borrowing is bad but if the house which isnt a purchase but ITS an investment you make up the 35 percent hit? you see he NEVER Mention this is point at all He didnt say anything about this?
Comment from : @stocksgoupward5922

Im sorry "stupid butt stuff" ?? 😂
Comment from : @chrisayala1703

Dave needs to get a clue 401k loans are possible with no penalties and you pay yourself the interest
Comment from : @susanlovesjava4961

The law was changed recently regarding paying back your 401k loan when you leave your current employer CHECK IT OUT
Comment from : @notmeee7302

Wish my second half took this advice seriously
Comment from : @KGB0217

Am I wrong by saying this…… Taking the money out of your 401k and paying the house outright, is not like financing it with 35 interest You’re getting taxed that on your 401k money regardless, no matter if it’s today or in 20 years I’m not saying it’s a good idea but Dave is wrong with that comment
Comment from : @melissacormier8

Or 50 loan from his 401k and not paying any penalty and interest will be paid towards his 401k!
Comment from : @Jmegdad

Unlike an early withdrawal from your 401(k), a 401(k) loan isn’t taxable Most loans — including personal loans, cash-out refinances and home equity loans — are also not taxable
Comment from : @Carnerd101

They’ll just get you one way or another 🤯
Comment from : @mbprevs

Life is too short to be keeping a 401k What the heck? Spend your money when you can people
Comment from : @rockson4975

Guy has $108,000 in savings plus enough in 401k to pay for a house and Dave says “you’re broke” 😂
Comment from : @OhYeaMista

They’ve got enough in 401k to buy a house Why would you guess that they’re in their mid 20’s? Most 25 year olds are lucky if they’ve got $20k in 401k
Comment from : @OhYeaMista

Why doesn't he just pay off the car and other loan if he has triple that saved? Is the interest rate negative or something?
Comment from : @cosmomontanaro5759

Since when is 30k an expensive car? Have you priced any new car in today's market? If you buy a 10k car it better come with a good mechanic
Comment from : @dkolb65

But that money will eventually have to get taxed when you take it out in retirement, so you shouldn't really consider the tax rate in this question, only the 10 penalty
Comment from : @Seethi_C

"How old are you"? br"My house got burned down by a firework"
Comment from : @575burntoast

I generally agree with Dave, but a guy who has a $95,000 per year household income and over $100,000 in savings is not broke, even if he has a car loan He may be in the early stages of building his wealth, but he is definitely not broke
Comment from : @tompinkerton8099

Disagree The 35 percent tax you pay on the 401k is mostly likely less than the interest you will pay throughout the life time of the mortgage
Comment from : @lamarg247

I'm just going to wait until the government loses all my 401 k money This guy Dave is a CIA agent You do know that right ?
Comment from : @EYELOVEALL

You have to pay taxes on it anyways when you sell 30 years from now potentially the 10 penalty is waived as it might be eligible for a hardship? Withdrawal
Comment from : @kevinh4910

Dave is wrong
Comment from : @josephd2383

He didn't ask the age of the person on the phone If over 59-1/2 it has different rules
Comment from : @estebanserrano1303

Wowbrso much knowledge But we NEED our SUV Honda pilot my guy
Comment from : @genos_vacuum

dave can be very condescending and simplistic in his advice if you get a retirement loan, yeahhh you pay interestbut it does NOT go to servicing the loan it is like a forced savings plan: that interest goes back in YOUR pocket If you can save a shit ton of mortgage interest while paying yourSELF backcheck your company's policy on repayment after leaving the job Dave likes to pretend there are no gray areas bc it is a one two punch for him: he gets to make other people feel stupid WHILE streamlining his advice
Comment from : @poetessbritt

He’s funny and realistic 📍
Comment from : @Iamdianelouise

Wait! Hold on Dave! You make it sound like he's taking a hit of 30 on his 401K money for every year for 30yrs! No! the hit is only for 1yr! Not for the entire 30yrs! He's going to save a TON of mortgage interest over 30yrs! Probably $300K in interest! Plus! You eventually have to pay the 401K taxes on that money when he retires anyway! Yeah! he's going to pay a 10 penalty but look at all that mortgage interest he saves over the life of the loan! I don't think you're seeing the forest for the trees! 🙄 NFA
Comment from : @jcattera

This is not right we did not get a 10 penalty when we borrowed our 401k loan of 35K for closing costs on an investment property We only got charged around $500 dollars to take the loan and it came the next week as a check We paid 58 interest and it was not to the company it was back to our own 401k Now the market went down for the past 2 years!!!!! so we didnt lose any money on that investment at all I think this is a "it depends!" situation So Dave ramsey is simplifying here We are in a bear market and a sideways market for the next year IF you are borrowing to flip a house better to borrow from yourself than from a bank
Comment from : @Jamaicandoctor

Increasing tax rates are the reason I rolled over my 401k to a Roth I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account
Comment from : @VICTORIAJordan-s5w

how does the fact that he has $108,000 in savings not make him not broke?
Comment from : @kc201310

This guy is a troll
Comment from : @mendez771

That right buy an old ten thousand dollar car and get everything fixed on it now if it last
Comment from : @allsensegamer6396

No it's not like 35 interest brYou pay 35 once brBut if you borrow at 7 you'll end up paying twice what you borrowed in 15 yearsbrMy advice is , go for it
Comment from : @cyberms2783

I've always wondered If you have a 401k that you contribute roth if you take money out, will they still tax you on it and take the 10 penalty? Just always been curious
Comment from : @geno816

So the tax you owe , if you wait till your 60s, is not there ??? Let people use their money (in stuff that makes sense, while it is still there and while they are alive
Comment from : @KartalFL

you can also take a loan out of you 401k cant you? so instead of pay the bank you pay back to your 401k fund?
Comment from : @3lectric0

I want to know if they collected insurance
Comment from : @brandonschuppe1833

04:10 stupid-butt stuff, or stupid butt-stuff? 🤔
Comment from : @InBobWeTrust

I must have misunderstood something I thought there was a way to make a one time withdraw on 401k without taxes and penalty if it's put toward mortgage
Comment from : @jackstonehenge

How old are you? brbr47brbrYes you are in the early stage of building your wealth
Comment from : @hfkssadfrew

Thank you
Comment from : @pinkorganichorse

10k car doesn't even move these days, these guys are out of touch
Comment from : @Shroter

Umnn its 35 of the capital gain not 35 of the lumpsum
Comment from : @SS-sy4uu

Why does he just guess people's age instead of just askingbrEspecially when he is always off by a decade or more
Comment from : @ChristoherWGray

401 gets taxed no matter when u take it out
Comment from : @travlepreneur

Seems to me just about every car today is atleast 30k or very close
Comment from : @KeebasLife

This guy is financially illiterate
Comment from : @gsquared2394

He didn’t want to hear that about his car Probably a super uped truck
Comment from : @oclayton1911

Why is it so hard for people to understand getting out of debt??
Comment from : @jimroscovius

You NEVER take from an IRA unless it's too stave off bankruptcy Don't lose the interest
Comment from : @jimroscovius

“How old are you?”brbr“Well my house burnt down”
Comment from : @davidmilhouscarter8198

Are you in your 20's?brYes but in a 47 year old's body 🤣🤣
Comment from : @JiisTube

🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️
Comment from : @howtomedicalvideos6597

This is one of those people who think their cars are an investment
Comment from : @beastfromtheeast9318

Disagree I took a $15k 401k loan to buy a house in early2021, bought itbrFor $325k, house’s worth $525k now
Comment from : @DonesdeMotivacion

It’s not true what Dave said , Some employers allow 401k withdrawals up to 50k without penality Also interest you pay is not to bank but yourself so you don’t really loose money Also if you leave job it depends on 401k policy of employer many allow to carry loan as long as you are paying monthly minimum payments It’s works pretty well in this scenario
Comment from : @ashitabhat

Refinancing on a 15 year right now would be a horrible idea if they got in the house before this craziness!
Comment from : @ryankeels4661

I live in Corpus Christi as well People here will drive nice car than the house The car has the highest priority around here Wife won’t let that car go i can guarantee 😀
Comment from : @scorpion2320

I did, worked out pretty well
Comment from : @kbanghart

Could he get it as a loan from the 401K instead of pulling it from the 401K some one could explain me that
Comment from : @ra1692

108 k in the savings account 😳😳
Comment from : @anaa03899

How old are you?brWell ya see a firework went off in my back yard…
Comment from : @Gus_Chiggins

Clueless
Comment from : @MrMustangrick

Listen people Listen loud and clear… YOU SHOULD NOT HAVE A CAR PAYMENT Period No justification No rationalization No excuses No car payment… ever
Comment from : @nkyryry