Dave Ramsey Caller Says She Was Trying To 'Help' Her Husband Retire Early By Borrowing From His 401(k) To Buy And Flip Houses...But They Didn't Sell

Core Insights - A Boston woman attempted to help her husband retire early by withdrawing funds from his 401(k) to invest in real estate, which resulted in financial difficulties [1][2][3] Financial Situation - The woman withdrew $40,000 from her husband's 401(k), leaving approximately $49,000 remaining in the account [4] - The couple has around $9,000 in emergency savings and $4,000 to $5,000 in a business account [4] - The financial loss from the failed real estate investments is estimated to be at least $12,000 [4] Investment Strategy - The initial investment involved flipping houses, but the first property did not sell, leading to refinancing and ongoing financial burdens [3] - The second property has also become a financial strain, nearing the maturity of its hard money loan [3] Expert Commentary - The host of "The Ramsey Show" advised the woman to exit the real estate market entirely, highlighting the risks of her investment strategy [4] - The discussion included the significant tax implications and penalties incurred from the 401(k) withdrawal, estimated at over 35% [5] - The host emphasized the importance of not depleting retirement accounts for short-term investments [5]