nein51 said:boognish_bear said:
Yeah... unless I am missing something I don't see how this is a good idea. It's just shifting your own money somewhere else.It helps on the down payment, but it doesn’t fix supply. More buyers with extra cash usually means prices adjust first. And since 401(k)s are the main retirement pool for most people, pulling from them just shifts the trade-off from housing stress now to less compounding later.
— Troy | Following Capital (@TroyOnCapital) January 16, 2026
It's the worst solution because you're taking pennys on the dollars as well.
$1 invested in the S&P500 in 1996 is worth $7-$8 now and compounding gets larger as the amount gets larger. $100 invested would be around $1900 now.
So if you're taking $30,000 in 1996 you really took $569,000. It's possible that, if you stayed in that home, it's worth $569,000 now but that assumes you never put a single dollar into it which is **unlikely**.
You misspelled "impossible."