I’m 60 and want to buy my first home. Is it smart to tap my $2.5M 401(k) now, or should I consider other options first?

Core Insights - An increasing number of Americans in their 60s are renting, raising concerns about whether they have delayed homeownership too long [1][3] - The median age of homebuyers in the U.S. has risen to 59 from 39 in 2010, indicating a trend of older individuals entering the housing market [3] - The number of renters aged 65 and older has increased by 2.4 million between 2013 and 2023, the largest increase among all age groups [4] Financial Considerations - Older adults like Mark face a dilemma of whether to withdraw from retirement accounts to purchase a home, which could lead to significant tax implications and reduced future investment growth [2][5] - A withdrawal of $400,000 from retirement accounts is taxable and could push individuals into a higher tax bracket, impacting their overall financial health [5] - Mortgages can mitigate immediate tax burdens but introduce long-term financial commitments, including property taxes, insurance, and maintenance costs [6]