The Investment Most People Overlook: Why Your Home Can Outperform Your 401(k)
Most of us grow up hearing the same message: "Max out your 401(k). It's the best investment you can make." And it's true�401(k)s are powerful, tax-advantaged vehicles designed to grow steadily over time. But here's what many people never hear: A home is also a tax-advantaged investment and for many families, it delivers even stronger long-term wealth gains than retirement accounts. Today, we'll walk through a real-world example showing how using $40,000 from a 401(k) to purchase a home (under a hypothetical tax-free withdrawal allowance) may generate a much higher return than leaving that same money invested in a retirement account. The Scenario You withdraw $40,000 from your 401(k) penalty-free to help buy a home�something that may be possible under a proposed exemption from President Trump's housing plan. You use it as the down payment on a $400,000 home with: 90% mortgage ($360,000) 30-year fixed rate (assumed 6%) Home appreciation...