Raiding your 401(k) to buy a home may seem tempting, but financial experts like Dave Ramsey advise against it. Cashing out comes with heavy penalties, taxes, and loss of compound growth. It’s usually poor planning to sacrifice your future for a house today.

Withdrawals before age 59 1/2 incur a 10% penalty plus normal income tax. Early withdrawals should be a last resort, recommended only when other assets aren’t available. There are exceptions for certain hardships, but rules are strict and still incur income tax.

Despite the temptation to cash out, the long-term cost is significant. Withdrawing early can result in losing out on substantial future growth. Financial experts recommend a more measured approach to homeownership, balancing budget with long-term goals like retirement savings.

Real wealth building is a slow and steady process. Stick with a solid financial plan and avoid get-rich-quick schemes. Look for advice from people with steady, sustainable lives, rather than flashy ones. Your golden years will thank you for the patience and prudence.

Read more at Yahoo Finance: Charlotte man says ex wants him to cash out his 401(k) for a home, but Ramsey Show says she’s ‘full of crap’