<prompt> Human: Background: We live in a condo unit of 40 units. We own a corner unit. New bathroom 4yrs ago. Brand new kitchen with all the works done 22017. Complex built in 1946. 1,000 sqft, 2BR and 1BR. We dont have much privacy with a shared front stoop and we live on a busy road, but in a very trendy neighborhood. Weve lived here for 12 years and its been great. Were now older and feel that we need to get a final place, but we want to stay in our current neighborhood and add some amenities weve missed. This would be our retirement home. We owe approx. 89k on our current mortgage. We have an HELOC with a balance of 17.9k Current market value of our unit based on comps is 160k; could likely go for more given the new kitchen, bathroom remodel and corner unit. Household income is 105kyr; 24k in student loans, about a rolling 1k of credit card debt per mo never have late charges. We do not like yard work and do not want to do anything besides grow small gardens, etc eg, were fine paying an HOA to do yard workWhat were considering: Selling our current condo and buying an upgraded townhome down the street thats listed at 550k for 2,000 sqft, plus outdoor living space and a yard. It has a 2 car garage weve been parking our cars outside on the street More than 1 bathroom 2.5 total Space for guests and storage It has a backyard and back porch we have pets. The HOA does yardwork since its a large, private community yard for the 6 homes its actually pretty cool. New construction with nice, new appliances Extra spacerooms that we can most definitely use HOA of 185moConcernsAddl Info: While weve been pre-approved, wed be tentatively expected to lay out around 140k to secure a 30-yr fixed rate at closing. 55k would come from the current condo has to be a contingent sale and the balance would have to come from the 401k that has approx. 104k vested. Between my contributions and my company, Im adding 13 of my take-home to the retirement fund, so its relatively aggressive. We do have an Edward Jones account, but were only at 1k. Wed probably have to stop contributions, My job is very stable and Im doing very well after 5 years with expected growth. Ive received 2 industry certifications, and working remote is always an option. Same for spouse, but income potential is not as substantial for him. We feel like this would be a long-term investment and we can just focus on this for our end days. We enjoy the city and neighborhood. The current property has been wonderful, but it does seem to be a younger-person transition area. Weve never had problems, but were willing to struggle a little for a little bit to get some private space. We feel like were the old people now.Questions for you: Would this livinglife change warrant an 85k withdrawal from my 401k for a very nice final home? We are just so tired of having to be on whenever we go outside, and this new place would be so isolated and quiet. Are we crazy for jumping from our current financial situation to a mega-mortgage and 401k withdrawal? Weve also run into a bunch of crazies in a 40 unit complex and this new one only has 6 units, which is very appealing.Do we go house poor for a few years for a great living opportunity later??? All opinionsperspectives welcomed. Thanks!Edit: Thanks for all the scolding everyone. Yes, I suppose we were fantasizing about this brand new place. Were going to stay put and enjoy our new kitchen for a while. As far as the credit card debt, I meant that we put about 1,000 on it per month, but pay it off in full. I think Ive only had one finance charge on a credit card in my whole life. We live well within our means and dont struggle, which some people seem to be implying. Well just sit tight until were in a better position to purchase. Thanks again. Edit2: Ok, guys, I got it about the 401k savings. I wont go into details, but we had some life events happen and career changes. I now have a very good job in a stable industry and its very mobile across companies. Spouse is a retail manager and works 32 hours per week we like our personal time together. Weve been aggressively putting money away for about 3 years and its grown quite nicely. Were going to continue that. Remember that between my contribution and the company match, its 13 going into the 401k. As far as being materialistic as some people suggested, far from it. We both drive beaters, get our clothes at Target, and go out to eat 1-2x per mo. I suppose we thought this mega-townhouse would be our personal mecca since were big homebodies. Ill check out the EJ thing. Were basically doing a little better than a regular savings account for ROI after 6mo. Anyway, I appreciate the input and tips. Edit3: I did have a scheduled call with the loan officer this afternoon, and I told her it was just too much money for now and she agreed. On an uplifting note, she said if we found something in the 350k-450k range, we would only need 5 down. Without going too deep, our household income should be around 125k within 3yrs so well get our retirement in shape and then figure out where to retire.Thanks again.  <response>: Would this livinglife change warrant an 85k withdrawal from my 401k for a very nice final home?No. We are just so tired of having to be on whenever we go outside, and this new place would be so isolated and quiet.Whats the question? Are we crazy for jumping from our current financial situation to a mega-mortgage and 401k withdrawal?Yes. Weve also run into a bunch of crazies in a 40 unit complex and this new one only has 6 units, which is very appealing.Whats the question? Do we go house poor for a few years for a great living opportunity later??? All opinionsperspectives welcomed. Thanks!No. Even more all your other debts, you are over 30 debt payment to income level, assuming an 18 year mortgage youve been paying 12 years on your current mortgage, so you should be planning to pay it all off in 30 - 12 18 years. Your husband is 49 ... 49 18 67 years old: SSA retirement age.Squandering your 401k when you have so little in non-retirement saved is foolish.Focus on clearing your 132K in debt, starting with your 1K in credit card debt. It is nonsense to pay 250 interest each year on such a small debt. 