Cash Out to Buy?

Dave tells Travis that he would never, ever, ever, ever, ever cash out a Roth IRA to buy a house!

QUESTION: Travis and his wife are in their 20’s and really want to buy a house. He has a Roth IRA and if he cashes it out, he and his wife can do it. He is aware of the opportunity cost of using that money and wants to know what Dave thinks?

ANSWER: I would never cash out a Roth IRA to buy a house. Ever, ever, ever, ever. You are making the right decision to look at the opportunity cost. The Roth IRA is a tax-free situation. A little patience and you’ll get your house without destroying your investment plan.