For you younger folks: - Page 2
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Thread: For you younger folks:

  1. #11
    Quote Originally Posted by ADJ423 View Post
    I just believe that the ONLY reason you should take money out of a retirement fund is that you retired. If you have to take funds from your retirement for a down payment then you cannot afford it. I would never take from retirement to go into debt. If you want to take a mortgage then have at least a 20% down to avoid PMI and get a 15 fixed mortgage with 0 points and 0 origination fees.
    Second, I feel that buying single stocks are a big mistake. I would rather diversify in mutual funds with long track records than have a handful of single stocks.
    These are just my financial beliefs. I know not everyone shares them so if that plan is for you then I hope you can find the perfect home because it is a great buyers market right now.
    Dave Ramsey is the man!!
    Rule #1 of CCW: Don't get made.

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  3. #12
    Quote Originally Posted by ADJ423 View Post
    I just believe that the ONLY reason you should take money out of a retirement fund is that you retired. If you have to take funds from your retirement for a down payment then you cannot afford it. I would never take from retirement to go into debt. If you want to take a mortgage then have at least a 20% down to avoid PMI and get a 15 fixed mortgage with 0 points and 0 origination fees.
    Second, I feel that buying single stocks are a big mistake. I would rather diversify in mutual funds with long track records than have a handful of single stocks.
    These are just my financial beliefs. I know not everyone shares them so if that plan is for you then I hope you can find the perfect home because it is a great buyers market right now.
    1) "I just believe that the ONLY reason you should take money out of a retirement fund is that you retired." I can see your point, however wouldn't it be a moot point if you simply replaced those funds with the $8k tax credit within a few weeks?

    2) About the 20% - I am eligible for a VA loan, thereby eliminating the benefits of te 20%. Additionally, by the time I have the 20%, housing costs and interest rates will likely be higher. Besides, I intend to buy something well within my cash flow comfort zone.

    3) I have the same views about debt as you for the most part, but a reasonable mortgage is in a different category. In addition to gaining equity, writing off interest payments, and living in the investment, you aren't pouring rent money down a hole.
    The Avatar is my Great-Great Grandaddy, CPL Samuel Francis Bondurant, Co. D, 4th Alabama, Law's Brigade, Benning's Division, 1st Corp, Army of Northern Virginia, shot through right thigh 2 JUL 1863.

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