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Used to pull cash out every time my house went up in value, now I just leave it alone
Back in 2021 I took out $30k from my house in Phoenix to redo the kitchen and it felt like free money. Last year I thought about doing it again for a new roof but the rate was 7.5% and I just paid cash instead. Has anyone else stopped treating their home equity like a savings account?
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jordanl8212d ago
Treated it like an ATM, not the end of the world though.
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mark_cooper12d ago
That 40 grand figure keeps getting thrown around like it's pocket change. People act like it's no big deal to pull that kind of money from a tax-advantaged account meant for retirement. Yeah, the 10% penalty stings, but what really hurts is missing out on decades of compound growth. If you're young, 40k today could easily be 300k or more by the time you're 65. They treat the 401k like a savings account when it's supposed to be a long-term lockbox. The whole point is to make it annoying to touch so you don't screw yourself later.
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