I'm 60 and I want to borrow from my 401(k) with $750k in it for a home purchase - is this a foolish idea?

A 60-year-old Redditor is contemplating using $150,000 from their $750,000 401(k) to make a down payment on a new house, aiming for a property valued between $350,000-$380,000. With annual expenses exceeding $60,000, they are considering how Social Security and continued part-time work will supplement their income after retirement. Although they possess minimal debt, withdrawing from their retirement savings could significantly affect their long-term financial health, as it's crucial to maintain adequate retirement savings for their desired lifestyle post-retirement.

The Redditor should consider alternative options like renting or consulting a financial advisor before deciding to withdraw from their 401(k) for a home purchase.

Using 401(k) funds can provide immediate cash, but long-term effects on retirement savings and potential penalties could outweigh the benefits.

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