Buying a home using retirement savings? Financial expert weighs in [Video]

Nearly 1 in 10 American homeowners say they pulled money from their retirement savings to cover the down payment and closing costs associated with buying their house.

A recent survey by Bankrate found that 9% of homeowners withdrew from their 401(k) or other retirement account to make the purchase, and younger generations were most likely to do so. 

Sixteen percent of Gen Z respondents (ages 18-27) and 12% of millennials (ages 28-43) reported taking money out of retirement savings to fund their down payment, compared to 7% of Gen Xers (ages 44-59) and 8% of baby boomers (ages 60-78). 

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But is it a smart financial move?

David Ragland, CEO of IRC Wealth and a certified financial planner, says “the 401(k) — or any retirement program — is the most powerful wealth building tool out there,” and he does not recommend withdrawing from those funds to buy a home.

He points to two major reasons for not pulling money from …