<prompt> Human: So to expand a little bit, I had started a 401k at my first job out of college. Worked there for about 7 years and then quit. Moved out of state, got a new job, etc. Flash forward to present day, totally forgot about my old 401k, and have since had a new career that also provides me a 401k. Yesterday, I received a letter providing me an update on my old, forgotten 401k. Surprisingly enough, it is doing really well. My question is, since my fiance and I are looking to purchase a new home, and currently saving for the down payment, would it be a smart financial decision to cash-outwithdraw from my old forgotten 401k to help with the down payment or let it sit for the next 35 years till I retire.  <response>: It drives me bananas when people say oldforgotten bank account. Like that somehow justifies terrible financial decisions because you arent tracking your money or net worth. If you dont have savings for a house, you generally cant afford one. A house is so much more expensive than just a down payment. Youve got inspection, potentially survey, closing costs, title fees, escrow taxes, homeowners insurance, points, lawyers fees, potentially brokerage fees. Then once you close on the mortgage you have moving costs, and all the new home start up costs like lawn mower, snow blower, washerdryer and any potential missing appliances. That doesnt count any furniture, window dressings so the whole neighborhood doesnt see in, and rugscarpetpaint thats needed immediately. Then theres maintenance costs of 1-2 of the sale cost every single year, which doesnt include any upgrades you want to do - just literally making sure the house doesnt fall down or ignore roof leaks when they happen. Retirement is the only thing in life you cant borrow for. So while you can take a loan out for a down payment on your first primary home, its a terrible idea. Save your money for a few years and get your finances In line before considering home ownership. You want to have a lot of cash around when you purchase because you will have something stupid happen that you need to spend 500 at Home Depot the weekend you move in, it inevitable that something will break immediately as soon as you buy it. For us it was the hot water boileron demand hot water combo boiler replacement which costs 10k within two weeks of moving it - which we knew from the inspection but no one thinks its going to happen days after moving in. 