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<p>[QUOTE=&quot;Brett_in_Sacto, post: 2413192, member: 71510&quot;]Seriously, 20%???&nbsp; Maybe E.F. Hutton&#039;s brother-in-law.&nbsp; The real world is showing 5% to 7% on a 10yr rolling cycle right now, it used to be ~10% but money is cheap now - and times are volatile.</p><p><br /></p><p>Realistically it can be good to tap your 401k - but knowing the real cost and understanding the risks.</p><p><br /></p><p>I dumped my 401k twice.&nbsp; Both times to buy a house.&nbsp; Both times I dumped at near/peak of the market - Dec/2000 and in Jan/2009.&nbsp; Even after taxes and penalties - I avoided ~30% and greater losses (almost 50% in 2009/2010) and moved the money into real estate.</p><p><br /></p><p>Now, I wasn&#039;t timing the market - I wanted to buy a house - and I had the money sitting there.&nbsp; I thought about a loan from myself and decided I&#039;d rather have the cash on hand in case something else came up.&nbsp; It was sheer luck that I got out before the drops.&nbsp; It also taught me a lesson - that money tied up in accounts like this are subject to market volatility - and that I&#039;m a sheep following the herd to someone else&#039;s tune.</p><p><br /></p><p>While everyone else was singing the 401k/201k blues in 2010 - I was busy acquiring my second home at a rock bottom price.</p><p><br /></p><p>Was it the best decision for everyone?&nbsp; Heck no!&nbsp; But it did work out for me.&nbsp; I got out of one asset at near peak and into another near bottom.&nbsp; </p><p><br /></p><p>The key to success is having a 5 year plan and adjusting as you see the world changing.[/QUOTE]</p><p><br /></p>

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