No! No! No!

Cecilia wants to know if she should take $20,000 out of her Thrift Savings Account to use as a down payment on an investment property? Dave vehemently says no.

QUESTION: Cecilia in Texas, a My Total Money Makeover member, wants to know if she should take $20,000 out of her Thrift Savings Account to use as a down payment on an investment property? Dave vehemently says no.

ANSWER: We're going to cash out retirement and take a penalty to buy an investment property on debt. This is like combining two dumb things. No! No. No. No.

It won't be a better return, because you didn't take into consideration risk, and you've obviously not owned rental property. I own a bunch of rental property, and sometimes, they're empty. Or sometimes, they don't pay. Sometimes, they tear up stuff. The idea that somehow you're going to make a bunch of money off of this—I wouldn't go there.