<prompt> Human: Hello, were looking to buy a larger house within the next two years, and I have a quick question. Im 29, my wife is 27, we have around 65,000 in retirement funds. These are a combination of traditional iras, 401ks, and some fancy one through the hospital my wife works at that I cant recall the name of. We have about 10,000 in cash. We have had a second child and have now outgrown our home. Were looking at homes in the 250-300k range. Id like to be able to make a 20 down payment. Im assuming conservatively that the sale of our current home will net proceeds of around 20k. So if we buy in the spring Ill probably be around 20k short of my down payment. Should I pull money out of retirement or should I tell my wife we need wait another year and save up the 20k? I do feel some pressure to act this spring because neighborhood wed like to move into is newly constructed, and the homes seem to be moving quickly. Thank you in advance!  <response>: You should not take money out of your retirement accounts. Youll never get the opportunity to contribute that money again your yearly contribution is capped, and the cap is not increased by the amounts you remove, and youll pay taxes on the funds as well as a 10 penalty. Waiting another year to buy a house is not the end of the world, you wont add additional financialmoving stress to the already stressful first year of your childs life, and honestly, the infant wont really care about your square footage for a year or more anyway. There will always be homes on the market, and if they are building this year in your area, chances are good they will be building new homes next year too. 