While it's true that home values typically rise each year, you may think that it's still a good investment for your future in the long run. When you consider the money you could free up each month by downsizing to a smaller, more affordable home, however, you might find you are spending money that you could use for investing in your retirement account instead.
Paying off a student loan with money from your 401(K)
Many parents want to help their children pay for college and will often take on the debt of paying off those student loans. Wes Moss, host of the Sunday morning radio show "Money Matters," said that using money from your 401(K) to pay off a student loan is never a good idea, however. Even if you are 59 ½ or older and there is no longer a penalty to use your retirement funds, borrowing against it or making an outright withdrawal can seriously reduce what you will have for retirement. The impact could even delay when you can actually stop working. Instead, he recommended using a lender that will finance student loans and tells parents that they should insist that their children contribute to paying back the loan.