I got divorced and our financial settlement left me in a not so great situation. I agreed to keep about $175k in a 401k, and no other assets. Since then I've also managed to save about $80k but a lot of that was just a lucky investment (long story) and I won't be able to continue to save at that rate. I also have a job that will leave me with a pretty reasonable pension when I retire if I stay in it, which I plan to.
I have kids in a VHCOL area and cannot relocate. I rent the cheapest possible apartment for about $4,000/month. For a combination of financial and psychological reasons. I really, really, really do not want to be forced to move until my kids are done with school.
So, I would really like to ask the landlords if they would sell the condo to me, or if they say no, make an offer the next time one comes on the market. Similar units have sold for about $800k. I also have access to a special mortgage program that would loan me money at 3.5% with no PMI.
I know that in the long term I will have less money if I pull from this 401k to make an offer on the condo. However, it seems like it may be worth it for all the other benefits.
How bad of an idea is this?
original posted by Elegant-Lecture9394 to r/personalfinance on Sat, 02 Mar 2024 19:56:42 GMT.