Question regarding TSP withdrawal

[WallStreet]

I am 28 years old and plan on staying with the federal government, and thus invest in my TSP, until retirement. But right now I am in the process of shopping for a home. I do not have 20% to put down on a home and if I did it would save me a ton on monthly payments. My question is can I withdrawal money from my ROTH account which would allow me to put 20% down on a home loan? If so, what are the short term and long term implications from making an early withdrawal, and in your opinion, is it a good idea?

Thank you very much for any and all replies!

 

[OBGibby]

My opinion: Keep the money in the retirement account. If you can't afford the payment, you can't afford the house. The opportunity for your money to grow in the ROTH likely outweighs the opportunity for your "investment" in the house to grow. You may also be thinking that you'll sock away that difference in mortgage payments if you used the ROTH funds for the down payment - everyone says this, but few actually do it. Other priorities (purchases and bills) always seem to appear and will take precedence over your saving intentions. Keep your money growing...

 

[Frixxxx]

I am 28 years old and plan on staying with the federal government, and thus invest in my TSP, until retirement.

Very Smart, keep up the good work!

But right now I am in the process of shopping for a home. I do not have 20% to put down on a home and if I did it would save me a ton on monthly payments.

Maybe you should stop shopping?

My question is can I withdrawal money from my ROTH account which would allow me to put 20% down on a home loan?

Not recommended.

If so, what are the short term and long term implications from making an early withdrawal, and in your opinion, is it a good idea?

The Roth IRA is a retirement engine for the future, leave it. You put the money there for a reason.

As OBgibby suggests, which I agree 100%, but caveat with the following: Budget for the purchase. Unless you are using a VA loan, which requires no down payment, no PMI. Adjust your spending and investment to save the 20%.

Thank you very much for any and all replies!

Hope this helps. Good Luck with your career and investments.